Savers hit with lowest-ever interest rates

What about us diligent savers who are being hit with the lowest interest rates ever?

• Philip asks:

  Everyone seems to be concerned about the effect of an interest rate increase on mortgages. What about savers? Many of us have saved diligently during our working lives and are now hit with the lowest interest rates ever.

• Nationwide replies:

  We do appreciate that times are difficult for savers, particularly for those of you who rely on the income from your savings accounts. As a prudent organisation we do need to carefully balance the interests of both Nationwide borrowers and savers when setting rates. Some pricing decisions, which were right for the time, have impacted on our ability to offer better deals to savers, such as the guarantee that our Base Mortgage Rate would remain 2% above the Bank of England base rate. This has resulted in Nationwide operating with a lower margin.

  We have, however, introduced a number of products to help savers make the most of their money and we'll continue to do this. We have also introduced our Savings Promises which demonstrate our long-term commitment to offering a fair deal to savers.

  Details correct at 22 March 2011.