Nationwide have launched their ‘Flex Regular Saver’
A new savings account paying 2% interest has been launched by Britain’s biggest building society.
Nationwide’s Flex Regular Saver is available for current account members and has limited access for the first 12 months, after which it will revert to being an instant access account.
Members aged 16 or over can save up to £200 per calendar month into the account and are allowed to make up to three withdrawals within the 12 months after the account opening.
If four or more withdrawals are made, the rate on the “limited time” deal will fall to 0.35%.
The deal is open to members who have a FlexPlus, FlexDirect, FlexAccount, FlexStudent, FlexGraduate, FlexBasic or FlexOne2 account.
Those who do not currently have a current account with the Society can open one to be eligible, and Nationwide is currently offering various cash current account switching incentives.
Nationwide could not say what the rate would be after the initial 12-month period but added that members would be contacted ahead of the maturity date and informed of their new rate.
The 2% variable interest rate on offer is still less than half the October Consumer Prices Index (CPI) rate of inflation, at 4.2%.
Savers generally face a battle to find any returns that will beat the rise in living costs, meaning the value of many pots is shrinking in real terms.
Rachel Springall, a finance expert at Moneyfacts.co.uk, said: “It’s positive to see Nationwide supporting savers with an attractive rate, and those looking to kick-start their savings habit may well find the 2% Flex Regular Saver an attractive account.
“As the deal is only available to current account customers, anyone considering a switch to Nationwide to take advantage would be wise to weigh up the overall package of an account before they commit and act swiftly as the offer is not expected to be around very long.
“Savers will need to plan any withdrawals carefully as the 2% variable rate will drop to 0.35% if four or more withdrawals are made.”
Ms Springall said Newcastle Building Society pays a fixed rate of 2% on a regular saver account, which allows savers to deposit up to £200 a month and make unlimited withdrawals.
Savers can only repay any withdrawn funds from their Newcastle account up to the maximum monthly subscription limit of £200.
Ms Springall added: “It has a fixed term until November 2022, ideal for anyone looking make a savings pot for Christmas 2022 but who may need it in an emergency.”
She also highlighted a regular savings deal from NatWest paying 3% on balances up to £1,000. Savers can pay up to £50 a month into that account.