Nationwide International increases interest rates on lifetime saver accounts

Nationwide International, the offshore subsidiary of Nationwide Building Society, has this week announced it is increasing the interest rate for the Sterling Lifetime Guarantee account’s latest issue.

With effect from August 10 2009, Issue 13 will see the Sterling Lifetime Guarantee account pay up to 3.25% gross pa/AER (for the first 12 months).

Nationwide International’s managing director, Philip Dunne, said the latest issue is good news for savers.

He comments: “The Lifetime Guarantee account now pays a competitive rate that is 0.55% more than the previous issue and, with the interest rate paying up to 2.75% greater than the Bank of England Base Rate, Lifetime Guarantee represents great value for offshore savers.”

Record low interest rates have meant savers have been hit particularly hard. Rates currently stand at 0.5% - the lowest since the Bank of England was established over 300 years ago.

The Bank embarked on aggressive rate cutting in a bid to boost consumer spending, stimulate the economy, and stave off the worse effects of the recession.

However, this has meant many people are being put off by saving. In particular, pensioners who rely on the interest on their savings to live off are being pushed below the poverty line.

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