Nationwide cuts interest rates again

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expressman33
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Nationwide cuts interest rates again

Post by expressman33 » Thu Apr 16, 2020 4:08 pm

Just had a letter from Nationwide saying they are cutting the interest rate on my Single Access ISA from 1.4% to 0.25% ( YES 0.25%) . They blame "unexpected Bank of England base rate changes." :thumbdown: :thumbdown: :thumbdown: :thumbdown:

expressman33
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Re: Nationwide cuts interest rates again

Post by expressman33 » Thu Apr 16, 2020 5:22 pm

This is Nationwides reply to comments on their Facebook page
thanks for commenting.
Because the Bank of England base rate is now so low (at 0.10%), we have had to reduce interest on some of our savings and current accounts. We’ve looked at our entire savings range to ensure that the value of each of our products is fair to all members, while remaining one of the most attractive savings providers in the market for service and reputation.
We are committed to paying our loyal savers competitive interest rates, and Loyalty Saver and ISA continue to be the best instant access rates we offer. Reducing these rates is not a decision that has been taken lightly, but we are confident the new rates will remain competitive versus our high street peers.
If members in these accounts can limit the number of withdrawals, they need to make each year and are happy to manage their account online, then they could earn a higher rate of interest.
We sympathise with savers who have endured more than a decade of low interest rates. But as a mutual, we will not shy away from making tough decisions to protect all our members and preserve our unique business model for the long-term benefit of our membership. Jade
The account I have limits withdrawals to 1 per year

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Re: Nationwide cuts interest rates again

Post by cccashbacklover » Thu Apr 16, 2020 5:34 pm

expressman33 wrote:
Thu Apr 16, 2020 5:22 pm

The account I have limits withdrawals to 1 per year
What was Nationwide answer to that :?:

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Re: Nationwide cuts interest rates again

Post by AAAlphaThunder » Thu Apr 16, 2020 7:02 pm

Terrible news but not unexpected given the times we are living in.
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Re: Nationwide cuts interest rates again

Post by planteria » Fri Apr 17, 2020 7:39 am

is that the case, for the rate to be cut by significantly more than the cut in the base rate?

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Re: Nationwide cuts interest rates again

Post by Sarah » Fri May 08, 2020 11:51 pm

This change took effect on 1 May. They've cut the rates on many other accounts to the same 0.25% too, including the Loyalty Saver 15 Year accounts (previously 1.10%).

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Re: Nationwide cuts interest rates again

Post by planteria » Sat May 09, 2020 8:20 am

that's Loyalty for you.
these are exceptional times, of course, and they're set to continue.. but it's clear that our building societies are not providing good competitive value.

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Re: Nationwide cuts interest rates again

Post by tonyg » Sat May 09, 2020 9:10 am

expressman33 wrote:
Thu Apr 16, 2020 4:08 pm
Just had a letter from Nationwide saying they are cutting the interest rate on my Single Access ISA from 1.4% to 0.25% ( YES 0.25%) . They blame "unexpected Bank of England base rate changes." :thumbdown: :thumbdown: :thumbdown: :thumbdown:
I moved my ISA to The Post Office 1 year rate 1.3%. Not great but better than 0.25%.

Took 18 days for the money to move :crazy:

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Re: Nationwide cuts interest rates again

Post by planteria » Sat May 09, 2020 11:24 am

i agree that it's not great.. only reasoning i can see to do that is if a. you are determined to maintain use of your ISA allowance, and b. you are determined to remain in cash.
Thanked by: tonyg

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