Play fair on introductory rates, says Nationwide

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Play fair on introductory rates, says Nationwide

Thu 23rd Aug 2007

Nationwide Building Society has called on the banking industry to introduce more transparency on introductory deals.

The institution wants to see an update to the Banking Code which would force banks to inform customers of when introductory rates on saving accounts are due to end.

It recommends its own eSavings and Regular Savings accounts, which offer interest rates of 5.80 per cent and 6.75 per cent AER respectively over an unrestricted period, to savers who wish to avoid missing the end of offer periods on introductory deals.

Matthew Carter, savings director, said such deals are "commonplace" on the market.

"On the face of it, these rates may look very attractive to savers looking for a good return on their money but beneath the surface they are often little more than a smokescreen hiding an account paying a lower rate of interest," he argued.

Last week, Nationwide set the authorised rate on all of its overdrafts at 9.9 per cent AER.

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