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nationwide building society champion saver is it really such a good deal?

Published: 03/08/2009

 

Nationwide Building Society has today launched its Champion Saver account where it looks at the top rate on offer from eight named savings providers and then pays the average of the top five of these, plus a bonus of 1.10%
 
The eight providers are Abbey, Barclays, Halifax, HSBC, Lloyds TSB, Northern Rock, NatWest and Royal Bank of Scotland. 
Whilst this sounds like a good move for savers, there are a couple of important points to bear in mind.
 
  • The account requires a minimum balance of £1,000 and 60 days notice for withdrawals.
  • The eight savings providers it uses as the barometer excludes other building societies and some of the more competitive players in the savings marketplace.
The Nationwide Champion Saver is currently paying 2.80% AER and although the bonus element remains in force for a longer than average period (to 31.01.11) i.e. 18 months, there are plenty of other accounts for savers to consider.
 
Instant Access
  • Alliance & Leicester pays 3.15% AER with penalty free access from £1,000
  • ING Instant Access pays 3.00% AER guaranteed 12 months with instant access from £1
  • Sainsbury’s Bank Internet Saver pays 2.90% with up to 3 free withdrawals from £1,000
  • West Bromwich BS Saver Direct pays 2.80% with penalty free no notice access from £1,000
Notice Accounts
  • Nottingham BS pays 3.15% for 50 days notice from £1,000
  • Principality BS pays 2.90% for 30 days notice from £1,000
Whilst it’s not the same sort of product, it’s also worth bearing in mind that if you know you can tie your cash up for 12 months as opposed to opting for 60 days notice you can get 3.85% from Post Office and 3.75% from Derbyshire BS for a 12 month fixed rate bond. For a 9 month fix you can secure 3.21% from Bank of Cyprus UK.
 
So even though the Champion saver will ensure you get a better deal than many of the mundane savings offerings on the high street, it’s not a champion in the true sense of the word as there are better and in some cases more flexible options available.
 
If you’re a saver that doesn’t have the time to keep an eye on rates this account will no doubt appeal, but for those who are happy to put a little effort in they will be rewarded with even better returns.
 
ENDS
 

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Last Updated: 25-05-2012