Nationwide Lowers Most Savings Rates After BoE Cut

Nationwide Building Society, the United Kingdom's largest mutual lender, announced adjustments to its savings rates on January 12, effective from February 10. The changes, which will lower interest on many accounts while boosting rates on select fixed-term products, follow the Bank of England's decision to cut its base rate by 0.25 percentage points on December 18, 2025.

The building society stated that the modifications reflect the recent monetary policy shift, with most savings products seeing reductions of between 0.10 and 0.25 percentage points. However, Nationwide emphasized that the majority of these cuts are smaller than the full base rate decrease, aiming to soften the impact on customers. In a notable exception, the society will raise the annual interest rate on its five-year Fixed Rate Bond and corresponding ISA to 4 percent, providing a more attractive option for longer-term savers.

Several popular accounts will face the full 0.25 percentage point reduction. The Help to Buy ISA will drop from 2.5 percent to 2.25 percent, while the Continue to Save account falls from 1.75 percent to 1.5 percent. Similar cuts apply to junior savings products, including the Child Trust...