Nationwide Building Society increased the interest rate in June 2022, in a bid to help people make the most out of their cash savings. Their FlexDirect account offers a range of benefits such as the potential of an interest-free arranged overdraft and exclusive access to savings accounts.

Savers can benefit from five percent on balances up to £1,500, but customers are obliged to pay in at least £1,000 a month.

It should be noted that transfers from other Nationwide accounts or Visa credits do not contribute to the £1,000 minimum deposit.

The rate is fixed for 12 months, which then drops to the standard 0.25 percent. Britons can get access to five percent interest on their money and an interest-free arranged overdraft for the first 12 months with their online current account.

Customers who have previously had a FlexDirect account with an introductory rate will not be eligible for the offer.

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To apply, Britons must be 18 or over and a UK resident.

To open the FlexDirect account, customers have to use it for personal use only.

The saver must also have no more than four existing sole or joint Nationwide accounts and must have registered for Internet Banking.

The Nationwide website stated: “If you’ve had a FlexDirect account before, you won’t receive the 12-month credit interest offer or the interest-free overdraft offer again.

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Some transactions or requests will not be available via these channels, in which case the customer will need to visit a Nationwide branch.

Experts have predicted the Bank of England will raise the base interest rate to 2.25 percent despite the recent dip in inflation. A recent poll by Reuters found that the Bank of England is likely to raise the rate by at least 50 basis points.

Alice Haine, personal finance analyst at Bestinvest, encouraged savers to “shop around” for the best savings account deals in light of the continuing economic turmoil.

She said Britons must be sure to continue saving despite the fluctuations to inflation and interest rates to “ease the financial stress” caused by the soaring cost of living.

She said: “Remember, it is vital to have some cash set aside for life’s emergencies, particularly in this ever-present cost of living crisis. While the recommendation is to hold onto three to six months’ worth of monthly expenses, those with nothing set aside should strive to save a small amount towards that target every month. Each contribution, however small, will help to ease the financial stress that can come with having no backup funds in place.”