Against that backdrop, Nationwide Building Society has rolled out a regular saver that mixes a decent rate with room for the odd emergency. It nudges you to build a pot month by month, while allowing limited access so an unexpected bill does not wreck your plan.
What Nationwide puts on the table
Nationwide’s Flex Regular Saver pays a variable 6.5% AER. You need to be 16 or over, live in the UK, and hold a Nationwide current account. You can open it with £1, pay in up to £200 each month for 12 months, and receive your interest on the anniversary of opening.
Nationwide Flex Regular Saver at a glance: 6.5% AER, minimum £1, up to £200 per month, three fee‑free withdrawals. A fourth withdrawal drops the rate to 1.25% for the rest of the term.
Access stands out here. You can dip in up to three times without a penalty. If life forces a fourth withdrawal within the 12‑month term, Nationwide cuts the rate to 1.25% until maturity. That safeguard suits people who want discipline without a lock.
How the numbers add up
Pay in the full £200 every month and you will add £2,400 across the year. On today’s rate and a typical funding pattern, that produces roughly £84.50 in interest by the end of month 12. Skip months and your return shrinks because your balance grows more slowly.
Max the allowance (£200 a month) and you’re looking at about £84.50 in interest over a year on £2,400 of deposits.
- Minimum opening balance: £1
- Maximum monthly deposit: £200 (total £2,400 over 12 months)
- Interest: paid at the 12‑month anniversary, AER includes compounding
- Access: three penalty‑free withdrawals; a fourth reduces the rate to 1.25% for the remainder
Want a smaller commitment? Halving your monthly deposit to £100 would broadly halve the interest, putting you near £42 over the term if you keep the same schedule.
How it stacks up against rivals
Rates grab attention, but limits and access rules decide how much you actually earn. A higher AER with a lower monthly cap or a stricter lock can leave you behind a lower headline rate with a more generous allowance.
| Provider | AER | Term | Monthly cap | Access rules | Illustrative interest |
|---|---|---|---|---|---|
| Nationwide Flex Regular Saver | 6.5% | 12 months | £200 | 3 free withdrawals; 4th drops rate to 1.25% | ~£84.50 on £2,400 funding |
| Principality Building Society | 7.5% | 6 months | £200 | No withdrawals; interest at maturity | ~£27.53; pot ~£1,227.53 |
| Zopa | 7.1% | 12 months | £300 | Withdrawals allowed without penalty | ~£137 on £3,600 funding |
| First Direct | 7.0% | 12 months | £300 | Access rules apply; check details | ~£136.50 on £3,600 funding |
Principality’s rate leads on paper, yet the six‑month term limits the pounds you can earn and blocks access. Zopa and First Direct allow £300 a month for a year, so the bigger cap lifts total interest, even with a similar AER. Nationwide sits between these options: a lower allowance than £300 rivals, but more flexibility than hard‑lock six‑month deals.
Who gains most from Nationwide’s blend
If you need an escape valve for emergencies, three penalty‑free withdrawals are valuable. Many regular savers punish access; this one forgives occasional dips. The rate cut after a fourth withdrawal still bites, so plan to keep within the first three.
Saving for car insurance, a holiday or boiler cover? This account lets you drip‑feed cash and still tackle a one‑off bill without wrecking your return.
Smart checks before you press apply
Nationwide restricts this to current account holders, so you may need to open one first. The rate is variable, so it can move. Your pounds and pence will depend on when you fund, how consistently you pay in, and whether you withdraw.
- Automate the habit with a standing order on the same date each month.
- Set a personal limit: if you hit three withdrawals, stop raiding the pot.
- Make a month‑11 diary note to plan the next home for your savings.
- Check your Personal Savings Allowance: basic‑rate taxpayers can earn up to £1,000 interest tax‑free, higher‑rate up to £500, additional‑rate none.
Three worked scenarios
Scenario A: You can spare £200 a month and want a backstop. Nationwide fits. Expect about £84.50 in interest if you fund every month and keep withdrawals within the first three.
Scenario B: You chase the largest return and accept a lock. Principality’s 7.5% for six months produces roughly £27.53 because the term is short and the cap is £200. Your cash stays tied until maturity.
Scenario C: You can push £300 a month for a year. Zopa and First Direct approach £137 of interest on £3,600 of deposits, thanks to the bigger monthly allowance. Zopa permits withdrawals without penalty; First Direct’s access limits differ, so read the key facts.
What happens after month 12
Regular savers often convert to a lower‑paying easy‑access pot when the term ends. Do not let the balance drift. Line up your next move before maturity: a fresh regular saver, a competitive easy‑access account, or a cash ISA if you want tax shelter and have allowance left.
Set a maturity reminder. Providers can roll matured balances into weaker rates without drawing attention to it.
Risks, trade‑offs and good practice
Regular savers reward routine but cap scale. If you already hold a lump sum, a good easy‑access or a fixed‑rate bond may pay more on that larger balance. If you expect frequent withdrawals, an unrestricted easy‑access account avoids the risk of triggering the 1.25% fallback rate.
A simple framework helps. Build a three‑to‑six‑month rainy‑day buffer in easy access first. Then add a regular saver to nudge momentum and pick up extra interest on money you would otherwise leave in your current account. Higher‑rate and additional‑rate taxpayers who earn significant interest elsewhere might prefer to use a cash ISA to ring‑fence returns.
Extra pointers and quick maths
Think in buckets. Pair one easy‑access account for shocks with one regular saver for planned costs over the next 12 months. That way, you avoid the damaging fourth withdrawal and keep the 6.5% rolling.
- Rough rule: halving or doubling your monthly deposit roughly halves or doubles your interest, if the schedule stays the same.
- If you miss a month, expect a noticeable dent. Delay early contributions and the hit grows, because less money sits in the account for as long.
- If rates change mid‑term, your AER reflects that change. Check statements and product updates.
One quick simulator: at £150 a month for a year, funded on the same date, you would bank around three‑quarters of the full £84.50—close to £63—assuming no withdrawals and no rate change. It will not be exact to the penny, but it sets a realistic expectation for planning.
Finally, watch tax. A basic‑rate payer would need a substantial cash pile elsewhere before this account nibbles at the £1,000 Personal Savings Allowance. Higher‑rate payers have a £500 headroom. Additional‑rate payers have no allowance, so a cash ISA could make sense if you are close to or over your limits.
