The Nationwide Building Society is the latest institution to announce that it is simplifying its old savings accounts to improve transparency for savers.
As part of a widespread clean up of its old accounts, the society’s ‘notice’ account range will be reverted into a single flexible account called an ‘Instant Saver’.
The move is expected to impact 2.5 million – around a quarter of the mutual’s savers – some of whom will see a name change to their account, and some of whom will be switched over completely.
The first stage of the clean-up process will see the society cut the number of savings accounts by almost two-thirds.
From December 11, accounts including the 75- and 90-Day Saver range, the Champion range, and the Bonus (30) range will be discontinued and replaced with three simple accounts: an ‘Instant Saver’, an ‘Instant ISA’ and an e-ISA account.
But no customers will face a rate cut as part of the changes, the society claims, which comes as welcome news following similar moves by banks that have coincided with rate cuts for millions of savers.
Over a million customers with RBS and NatWest recently discovered that returns on their tax-free ISAs were to be cut by up to 1% as part of the bank’s standardisation of old ISA accounts to the latest issue.
While some high-value investors are to benefit from the changes, the government-backed bank said that the higher returns of up to 2.25% on existing accounts were "unsustainable in the current market" (read more).
Other Nationwide moves to improve transparency include displaying rates conspicuously on online accounts, making it easier for savers to find out what they are earning by logging in.
It is also improving accessibility, allowing savers to benefit from online access to their accounts, even if they were opened in branch.
Across the market, instant access accounts are currently offering just 1.60%, with easy-access ISAs faring slightly better at 1.80%.
Those willing to lock away their money for 12 months can find ISA deals at 1.91%, while a new bond from Shawbrook Bank promises to return 1.95% after twelve months.
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