UK financial services provider Nationwide recently announced its intention to begin increasing the bonus in one of its savings account offerings, raising it 1.1 per cent gross yearly for savers who make less than two withdrawals every year.
The newly raised interest rate on its MySave Online Plus savings account comes after the bank conducted a pilot programme, which met with enough positive feedback to be considered a success.
Nationwide will increase the rates for customers who make only one withdrawal annually by 1.1 per cent, raising the total level of compensation to 2.6 per cent. The new rates for its internet savings account are in place starting this coming week
Director of savings for the banking institution Robin Bailey commented on the ideal nature of the savings account in regards to savers who are in need of both the flexibility and freedom inherent in managing their cash via the internet, adding that in addition to its rate, which is competitive with other banks’ online banking offerings, the savings account itself is both easy and quick to open.
In related news, a recent survey conducted by the Bank of Scotland revealed that men are slightly more likely to have savings accounts in comparison with women; the survey found that, among Scottish males, 36 per cent of those surveyed had a savings account, while the number of females with savings accounts was slightly lower at 33 per cent. Industry experts believe that these figures, if accurate, could lead to more men than women availing themselves of Nationwide’s new rates.
Still, savings account rates are lagging behind the current inflation rate for the country, which has been holding at approximately 3.1 per cent for several months, which some attribute to the BoE’s Monetary Policy Committee’s reticence to raise the base rate above its historically low 0.5 per cent, which could combat inflation.