Nationwide Building Society announced the upcoming changes in a public statement issued this week. It specified that, starting from 10 February, a number of savings rates will be cut by between 0.10% and 0.25%, although most reductions will remain smaller than the Bank of England’s adjustment. The announcement arrives amid ongoing economic uncertainty and comes as savers continue to monitor how financial institutions respond to changes in the wider monetary environment.
Nationwide, which operates several branches across Birmingham and other parts of the UK, stated that while many savings products would see reduced returns, a select few would benefit from rate increases. According to Birmingham Live, the five-year Fixed Rate Bond and ISA will see a rise to 4%, providing a more stable long-term option for those able to commit their funds for an extended period.
Multiple Savings Products Affected by Rate Reductions
Nationwide’s announcement outlines a detailed breakdown of the products affected. According to Birmingham Live, the Help to Buy ISA will see its interest rate fall by 0.25%, bringing it down to 2.25%. The “Continue to Save” product is also set to decrease, with the rate dropping to 1.50%. The reductions extend to a wide array of accounts, including children’s savings options and various limited and instant access accounts.
Products impacted include the Child Trust Fund, Smart Junior ISA, CTF Maturity ISA and Smart Junior ISA Maturity. Branch-based products such as the Future Saver and Children’s Future Saver will also see changes, as will online-only offerings like the 1 Year Triple Access Online Saver and ISA. Additional reductions will be applied to the Reward Single Access ISA, Single Access Saver and Flex Instant Saver, spanning multiple issue numbers.
The building society emphasised that some savings products will remain untouched. These include the Flex Regular Saver, FlexOne Saver, Start to Save, Smart Instant Access and SmartSaver accounts. These exceptions provide limited relief for existing customers seeking consistency in their savings returns.
Long-Term Savers Offered Slight Reprieve
While the majority of the changes represent reductions, Nationwide is making some positive adjustments for long-term savers. The most notable is the increase in the interest rate on its five-year Fixed Rate Bond and ISA, both of which will rise to 4%. This change could appeal to customers looking to lock in their savings over a longer period in return for improved returns.
Nationwide has positioned this rate increase as a way to provide balance within its broader adjustment strategy. By targeting only specific savings vehicles for increases, the society appears to be offering some customers an incentive to maintain long-term savings habits, even as shorter-term returns diminish.
The Building Society’s response follows standard industry practice when central bank policies shift. The Bank of England’s decision to reduce the base rate in December 2025, by 0.25%, was anticipated by market analysts and reflects wider economic considerations, including inflationary pressures and growth outlook.
The update serves as a reminder for savers to regularly review their financial arrangements. While some may benefit from the improved rate on long-term bonds, others relying on shorter-term or more flexible savings products may experience a noticeable dip in returns starting next month.
