Millions of Nationwide Building Society customers are set to see the returns on their savings diminish after the lender announced significant cuts to interest rates. The changes, which will come into effect next month, mark a blow for savers already navigating a challenging economic landscape.
Details of the Rate Reductions
The mutual has confirmed it is writing to affected customers to inform them of the adjustments. From February 10, 2026, interest rates on a range of specific savings products will be lowered. The reductions will vary, with some rates being cut by up to 0.25%, while others will see smaller decreases of 0.10%.
Nationwide has directly linked the decision to the monetary policy shift by the UK's central bank. "Nationwide has announced adjustments to savings rates in response to the Bank of England Bank Rate decrease of 0.25% on December 18, 2025," a statement to customers read. It added that the majority of products will reduce by less than the change in the Bank Rate.
Which Accounts Are Affected?
Not every savings account held with the building society will see a reduction. Nationwide has provided clarity on which products will remain unchanged, offering some respite for customers with certain accounts.
The following accounts will not be subject to any rate changes in February:
- Flex Regular Saver
- FlexOne Saver
- Start to Save products
- Smart Instant Access & SmartSaver
- Smart Limited Access
In a small piece of positive news for longer-term savers, Nationwide also stated it will increase the rate on its five-year Fixed Rate Bond and ISA to 4%.
Implications for Savers and Next Steps
The move means that customers with affected accounts will earn less interest on their savings from mid-February onwards. This development underscores the importance for savers to regularly review their financial products to ensure they are still getting a competitive deal.
Financial experts often advise that in a falling interest rate environment, it is prudent to shop around. Savers disappointed by the cuts may want to consider switching to alternative accounts elsewhere in the market that offer more favourable returns.
With the new rates scheduled to take effect on February 10, customers have a short window to assess their options. All impacted Nationwide members should receive direct communication outlining the specific changes to their accounts, allowing for informed financial decisions.
