Written by Karen Bryan
Update 1 October 2014 – The rates of interest paid on the Nationwide Loyalty Saver have now dropped by 0.2% – 15 years membership now pays 1.5%, 10 years membership pays 1.4%, 5 years membership pays 1.3% and I years membership pays 1.2%.
In my quest to find the highest possible rates of interest for our instant access savings, I looked into the Nationwide Loyalty Saver (Issue 4) which requires an opening deposit of £1,000, but the minimum operating balance is just £1. This instant access account pays a variable rate of up to 1.7% gross (before deduction of income tax) if you have been a member of the building society for an unbroken period of at least fifteen years. The interest rate is 1.4% if you’ve been a member for at least one year, 1.5% for members of five years and 1.6% for members of ten years.
That highest rate on the Nationwide Loyalty Saver is pretty close to the table topping 1.75% paid by the Britannia Select Access 3, which requires an opening balance of £500. However you are only allowed to make four withdrawals a year from the Britannia account. The ICICI Bank HiSave SuperSaver is paying 1.6% variable to new customers on deposits from £1.
The Nationwide Loyalty Saver is looking mainly attractive to savers who have been members for at least 15 years and require an instant access account. In my opinion, the Nationwide should be paying a slightly higher rate than they are to such long-standing customers, especially as the maximum deposit on the Loyalty Saver Account is £50,000 and they are a mutual organisation versus a bank which has to pay external shareholder.
I reckon that I’ve had a Nationwide current or savings account continuously for at least ten years, but it could be longer. Update 14 August 2013 – When I logged into my Nationwide acounts, I saw that I am being paid 1.7% interest on the Loyalty Account.
Unfortunately, you can’t put into your account number to check for how long you’ve been a member. You have to apply for the Loyalty Saver and Nationwide will then check their records and send you a letter within seven days telling you the rate of interest you’ll be paid. Fortunately there’s an option to fund the account later, as I didn’t want to commit any cash unless I knew I’d get the top 1.7% rate of interest.
I don’t understand why Nationwide can’t set up an online method for you to check the duration of membership, so you know the rate of interest which you’ll receive before applying for the Nationwide Loyalty Saver.
Interest Rates Correct on 22 August 2013.