In 2021, the average interest rate on savings accounts was just 0.35% according to Swanlow Park. Nationwide’s new 2% offer nearly quadruples that average, but savers have been warned to pay attention to the terms and eligibility criteria of this account.
The Flex Regular Saver Account now offers 2% interest, the highest interest rate currently offered by Nationwide.
However, regular savings accounts usually have a higher interest rate than easy access.
This is due to the fact that they have a few more clauses and restrictions than instant access accounts.
Nationwide also reported that this rate is only available for a limited time, so savers are urged to act quickly if this is the right account for them.
The Flex Regular Saver requires savers to deposit money into the account every month for 12 months.
This amount cannot exceed £200 and is therefore not recommended for those wishing to set aside a large amount of savings each month.
The account allows savers to make up to three withdrawals during the 12-month account term without affecting this interest rate.
However, if you make a fourth withdrawal during this period, the interest rate will drop to 0.35% for the remainder of the term.
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Savers are also advised that they can only have one Flex Regular Saver account open in their name at a time.
The account can be opened jointly between two people, but a trust account cannot be opened for the benefit of another person.
Savers can open the account on the Nationwide website, on their online banking or banking app if they have signed up for these services.
The first deposit to the account must be made within 28 days of opening the account or it will close automatically.
