Nationwide announces new savings interest rates
Published: 30 January 2009 By MoneyhighStreet Staff 1 Comment
Nationwide has announced their new savings and banking interest rates which will come into effect from 1 February 2009.
Savings interest rates have been reduced following the January cut in the Bank of England Base Rate.
Nationwide have confirmed that none of their savings accounts will be reduced by more than the 0.5% Base Rate cut and some will be reduced less.
On average their savings rates will be cut by 0.41%.
To demonstrate commitment to savers, Nationwide are continuing to offer a number of savings accounts with interest rate guarantees.
A new Tracker Bond is also being introduced on 2 February 2009. This has a one year term and will pay interest between 2.05% and 2.30% above Base Rate depending on the account balance.
Nationwide’s divisional director of savings, Matthew Carter, said ‘Nationwide is committed to providing a range of accounts that meet the needs of savers. We’re pleased to be able to go some way to protecting savers from the most recent cut to the Base Rate. The interest rates on a number of our accounts, such as the Regular Savings and Monthly Income 60+, will reduce by less than that of the Base Rate, while the interest rate on the e-Savings Plus will see no change at all.’
The AER (Annual Equivalent Rate) for the online savings account, e-Savings Plus will be guaranteed to be at least 0.75% above the Bank of England Base rate until 1 January 2010 and at least 0.25% more than the Base Rate until 1 January 2011. This AER is only applicable if three withdrawals or less are made.
Reduced Interest Rates
I am a retired person in England who regards my money (‘savings’) as my private pension fund. When my wife and I had a mortgage the rate was always in double figures and we made sure that we could afford it; now my fund’s interest is falling to zero. This is not a good enough return and I have been looking around the world, via the internet, for a better investment. Brazil for example, or France, to take advantage of the future further falls of the pound against the Euro. I certainly no longer trust the pound. For example, any one with £100,000 in Euros would have seen an increase of value to around £140000 over the last twelve months.
I do not understand why the interest has been reduced; it can only lead to a loss of capital to Britain and a consequence of a slump, as happened in the last century. The pound has been effected and has already followed the dollar down to a drastic revaluation that must lead to seriously increased inflation. I have yet to see any explanation of why interest rates have been reduced, and assume that the reasons are unacceptable to ordinary people, especially savers.
Is this all being done to delay the bankruptcy of badly managed banks and a minority of property developers/dealers and stupid mortgage holders who have over-borrowed; and maintain the unrealistically high property prices? I would have thought that it would be better to get the bankruptcies done to get rid of the incompetent, and place their business in more competent institutions and cleverer people.
The removal of the incompetent banks and the drastic reduction of property prices to affordable levels would be a much securer long term solution. We have had a very long period of continued inflation, it is time for a period of deflation to balance things up and bring about a stable value of our money for future generations. It is grossly irresponsible to allow the continuous inflation of prices that erodes and devalues the value of every one’s money and gives future generations very little to build on.
As a person who owns the money I am not satisfied with any interest below 5% pa, and if the interest is not returned rapidly I will take it to where it is more valued, and respected; which will not be the stock market, but rather abroad, or property when it falls far enough. Then the UK lenders will not be able to offer cheap loans because they will not have the money to do so.
If things continue as they are now, then the UK’s financial institutions and people’s personal savings are going to be nationalized, as were the coal mines, the railways, the car manufacturers, the steel industry, and the defence industry, and where are they now?