Nationwide Building Society, the UK's largest mutual, has issued a significant warning to its members regarding changes to its savings products. The move comes in response to the Bank of England's decision to lower the base rate in December 2025.
Rate Adjustments in Response to Bank of England
The financial institution confirmed that it is adjusting its savings rates following the Bank Rate reduction of 0.25% on 18 December 2025. These changes will come into effect for customers from 10 February 2026. The society stated that most of its products will see reductions of less than the full 0.25% cut implemented by the central bank, with specific decreases ranging between 0.10% and 0.25%.
Which Savings Products Are Affected?
While some accounts will see their rates fall, Nationwide has confirmed a handful of products will remain unchanged and one key product will see an increase.
Accounts with no changes:
- Flex Regular Saver
- FlexOne Saver
- Start to Save products
- Smart Instant Access & SmartSaver
- Smart Limited Access
Notable rate increases:
In a positive move for savers looking to lock money away, Nationwide will increase the rate on its five-year Fixed Rate Bond and ISA to 4%.
Accounts facing reductions:
A wide range of accounts will have their interest rates trimmed. The Help to Buy ISA will decrease by 0.25% to 2.25%, while the Continue to Save account will drop to 1.50%, also down by 0.25%.
Other products facing cuts include:
- Child Trust Fund / Smart Junior ISA / CTF Maturity ISA / Smart Junior ISA Maturity
- Branch Future Saver / Future Saver / Children’s Future Saver
- Various access accounts including Triple Access, Single Access, and Limited Access savers and ISAs
- Branch Reward Saver, Branch Flex Saver, and Branch Easy Access accounts
- e-Savings Plus and Instant Access Flex Instant Saver – Issues 2, 3, 4, 5, 6
What This Means for Savers
This announcement from one of the UK's leading savings providers signals a broader trend of financial institutions passing on the Bank of England's base rate cut to their customers. Savers with affected accounts will see a slight reduction in the interest earned on their balances from mid-February. Members are advised to review their accounts to understand the specific impact on their savings and to consider if their current product remains the best home for their money, especially in light of the improved rate on the five-year fixed products.
