Nationwide Building Society has launched a new savings account paying 6.5 per cent AER, available exclusively to its current account customers.
The Flex Regular Saver allows deposits of up to £200 each month for 12 months, enabling savers to set aside up to £2,400 over the course of a year.
Customers who contribute the maximum every month could earn £84.50 in interest based on the current rate, with the return credited on the account’s anniversary.
The account can be opened with as little as £1 and is managed entirely online or via the Nationwide mobile banking app.
This product is designed for customers aiming to build a consistent savings habit, and it offers a return that surpasses many easy-access and fixed-rate accounts currently available on the market.
However, the interest rate depends heavily on withdrawal behaviour.
To qualify for the full 6.5 per cent AER variable rate, customers must make no more than three withdrawals during the 12-month term. Someone saving the maximum £200 a month under these conditions would finish the year with a balance of £2,484.50.
Those making four or more withdrawals will see the rate fall to 1.25 per cent AER variable for the remainder of the term.
Nationwide customers could earn £84
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GETTY / NATIONWIDEUnder the same saving pattern, this would result in a year-end balance of £2,380.80, over £100 less than if they had retained the higher rate. This structure means the account is best suited to savers confident they will not need frequent access to their money.
The Flex Regular Saver operates exclusively through Nationwide’s internet banking and mobile app, with no branch-based servicing available. Physical cash and cheque deposits are not accepted, and all payments in or out must be made electronically.
Transfers can be sent to other Nationwide accounts held by the customer or to external UK current accounts that accept Faster Payments.
To be eligible, applicants must be aged 16 or over, live in the UK, have a valid email address and mobile number, and hold an active Nationwide current account.
To be eligible, applicants must be aged 16 or over, live in the UK, have a valid email address and mobile number, and hold an active Nationwide current account
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GETTYIf the current account is closed during the term, Nationwide may move the savings to a different instant access account with its own conditions and interest rate.
Customers can only hold one Flex Regular Saver at any time, regardless of issue number, and it cannot be opened in trust for another person.
Both individual and joint applications are allowed, with only one joint holder required to have a Nationwide current account.
Accounts can be opened via the building society’s digital platforms, and an opening deposit must be made within 28 days, up to the monthly limit of £200, or the account will close automatically.
There is no requirement to deposit funds every month
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GETTYThere is no requirement to deposit funds every month, but the maximum that can be added in a single calendar month is £200.
The interest rate is variable and could change during the year. At the end of the 12-month term, the balance will automatically transfer to an instant access savings account.
Nationwide will inform customers of the new interest rate in advance, allowing them to decide whether to start a fresh savings cycle under the same structure.
