Nationwide sends £20 bank account warning to customers

Nationwide has warned customers who use one of its top accounts their savings will take a hit over the next 12 months. The building society is lowering the interest rate on its Instant Access Saver account from November 1.

This will impact everyone who has savings in the account. Nationwide currently offers rates ranging from 2.25% to 2.35% depending on the level of savings, rewarding those who put more away.

From November, these rates are dropping to between 2.05% to 2.15%. As an example, someone who had just under £10,000 in the account would make £20 less in interest in a year as a result - from £225 to £205.

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The losses may be a viewed as fairly small but it could be enough for some customers to consider other options. The interest rates are fairly low anyway compared to some deals with other banks and money and finance experts say it's always worth shopping around to see if you can make more from your savings.

Millions of Brits stick with the same savings account for years despite it having a poor interest rate and their savings hardly growing. Nationwide said in an update to customers: "From November 1, 2024, we are decreasing the interest rates on this account. Before you apply, make sure you check your new rates."

One of the benefits of the Nationwide account is savers can access their money whenever they need to, which is one of the reasons the interest rates are fairly low. The building society said: "An instant access savings account that has flexibility for everyone. Save or withdraw when you want."