Nationwide Building Society has issued a stark warning to its members, highlighting that many savers are missing out on hundreds of pounds in potential interest by keeping their money in the wrong accounts.
The Savings Interest Gap
The mutual has revealed that while the average saver earned a healthy £436 in interest over the last year, a significant number saw returns of less than £50. This creates a potential shortfall of up to £386 for those not optimising their savings. The data shows that two in ten (21%) savers earned less than £50, despite widely available higher rates on dedicated savings accounts and ISAs.
Where Are Savers Going Wrong?
Nationwide's analysis pinpointed several key reasons for the interest gap. Notably, 19% of people are using their current account as a savings pot, rather than moving funds to accounts designed to generate returns. Furthermore, 13% earned no interest at all throughout the year. On a more positive note, the figures suggest resilience in emergency savings, with over a quarter (26%) of savers not touching their nest eggs in 2025.
Richard Stocker, Head of Savings at Nationwide, commented on the findings: “It’s encouraging that most people aim to save in 2026, with many planning to put away more next year. However, too many are missing out on interest by leaving money in current accounts.”
Nationwide's Advice and Offers
The building society is urging customers to take proactive steps. Their advice is to start early and save regularly to build a habit, and to utilise tools like the budget calculator within their app. Nationwide is also promoting several financial incentives to help, including:
- A £175 bank account switching offer.
- A £100 Fairer Share payment, which has been paid for the last three years.
- For eligible customers in 2025, a £50 'Nationwide Big Thank You' payment following its overtaking of Virgin Money.
The completion of the Virgin Money takeover in October last year was a significant move for the society, though it faced some member backlash. For daily banking, Nationwide's FlexDirect current account offers 5% interest on balances and 1% cashback for 12 months, with access to a linked saver at 6.5%.
Stocker concluded: “Make use of helpful tools... and benefit from incentives such as our £175 bank account switching offer – which is a great way to kick start a savings habit.”
