Nationwide Building Society has confirmed interest rate changes that will impact certain customers across four savings accounts. The clarification came after a customer took to social media to inquire about the process when a fixed rate bond matures.
Customer Inquiry on Social Media
On social media, one customer asked: "When a fixed rate bond has matured and if it is left to turn into an instant access maturity bond account, can I then just add money to it and treat it like a normal savings account?"
Nationwide's Fixed Rate Online Bond
The lender offers a Fixed Rate Online Bond which allows customers to choose from a one, two, three or five-year fixed term. The interest rate for the bonds is 4 per cent and is the same across all accounts.
On the Nationwide website, they state: "At the end of the term, we will move your money to an instant access savings account. We will let you know before this happens and what your interest rate will be."
Response from Nationwide
In response to the customer on social media, they added: "Yes, that is correct. If your money is in an instant access account, you can add and withdraw money as you like."
Impact on Interest Rates
Nationwide's Instant Access Saver pays just 1.1 per cent on deposits up to £10,000. This would mean a 3.9 per cent drop in your rate if your savings held in an online bond were moved over to this account.
The Flex Instant Saver pays 2.3 per cent variable and as a one-year term, with your interest paid at the end of the term.
Fairer Share Initiative
Many customers will soon also receive a £100 bonus thanks to the Nationwide Fairer Share initiative.
