Nationwide: Savings account rates must be cut

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Nationwide: Savings account rates must be cut

Fri 28th Nov 2008

Nationwide has announced that it will cut the rates of interest offered to savers using its savings accounts.

The building society said that interest rates across all its savings and bank accounts would be reduced by an average of 1.44 per cent, though the rates on some individual savings accounts will be cut by as much as 1.6 per cent.

Nationwide justified its move by saying that if it needed to cut the rates it paid to savers because it had cut the rates that mortgage holders had to pay.

Matthew Carter, Nationwide's divisional director of savings, said: "We passed on the full 1.5 per cent cut to mortgage borrowers […] and therefore also need to pass the cut on to our savers, to ensure our business can remain […] sustainable."

Earlier this month Gordon Brown called on financial institutions, particularly mortgage-lenders, to behave responsibly in the harsher economic climate.

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