Nationwide raises interest rates to 5% – but how does it compare with inflation? | Personal Finance | Finance

“This market leading rate will help new and existing members make the most of their money, which is particularly important right now.

“The FlexDirect current account also has an introductory interest-free overdraft to give some peace of mind to those struggling financially and freeing them to focus on repaying other debts.”

Financial experts are still warning that inflation will continue to rise in the UK for the foreseeable and this will continue to hurt people’s savings.

Paul Titterton, the managing director of Digital Solutions at abrdn, said: “Yet another inflation rise means more pressure on already strained household finances, and there’s an expectation that it will climb even higher to 11 percent later this year.