Nationwide Building Society has launched a new, competitive instant access savings account to encourage saving among young people.

The new FlexOne Saver will pay a competitive five percent on balances up to £5,000.

Nationwide has also increased the rate on its off-sale FlexOne Regular Saver account to five percent.

As the cost of living crisis continues, Britons are encourgaed to ensure their cash is working as hard as possible for them.

With the interest rate sitting at 5.25 percent, many banks and building society are giving savers the change to benefit from higher savings rates five percent and above.

Who can open a FlexOne Saver?

To open a FlexOne Saver account, customers need to be aged 11 to 17 and have a FlexOne current account.

FlexOne Saver can be opened and managed in branch or via the Internet Bank or Banking App.

Interest on FlexOne Saver is paid annually and the account can be held up to the age of 23, after which it will revert to an instant access savings account.

Younger people can get a competitive five percent gross p.a./AER (variable) on balances up to £5,000.

Nationwide’s FlexOne current account is fee-free and also open to those aged between 11 and 17.

It comes with a choice of either a cash card or Visa debit card. The current account pays interest of two percent AER (variable) on balances up to £1,000.

In addition, customers with Nationwide’s off-sale FlexOne Regular Saver account, which allows deposits of up to £100 a month, will see their rate increase to five percent gross p.a./AER (variable), effective from Wednesday 22 November.

Tom Riley, Nationwide’s Director of Retail Products, said: “It’s important to develop a savings habit at a young age and, as a building society, we want to play our part in helping foster that.

"That’s why we’re launching a new savings account for our FlexOne current account customers. Our FlexOne Saver provides young people with a place for their savings, offering a competitive interest rate and with no restrictions on withdrawals.

"FlexOne Saver will also ensure that our youth current account remains one of the most compelling accounts available.”