Nationwide enters business savings market

Society’s Commercial division launches four new business savings accounts

05 March 2012

Nationwide Building Society is today launching four new business savings accounts. They are aimed at small and medium sized businesses looking to save to anticipate tax liabilities, grow and expand or simply to create a ‘safety net’ for unforeseen expenditure.

At a time when more and more businesses are holding onto their cash and saving into deposit accounts, this launch should offer businesses increased choice at competitive rates, in what is currently a very concentrated market.

Small businesses
The following accounts are available to small businesses (new and existing Nationwide customers) with a maximum headcount of 250 and either a maximum turnover of £45 million or maximum assets of £45 million. Application forms to open either account are available by visiting www.nationwidecommercial.co.uk or by contacting us on 0800 66 55 11.

Business Saver
Business Saver is an instant access account that pays a variable rate of 1.30% gross p.a./AER*. This rate is paid on balances of £10,000 or more with a maximum balance of £10 million allowed. The Business Saver is made even more attractive by the fact that the account allows unlimited withdrawals and deposits.

95 Day Business Saver
95 Day Business Saver is a variable rate, 95 day notice account that pays a return of 1.60% gross p.a./AER*. The minimum investment on the account is £10,000 with a maximum balance of £10 million permitted. Withdrawals are permitted subject to 95 days notice.

Monthly and Annual interest options are available for both Business Saver and 95 Day Business Saver.

Medium sized businesses
The following accounts are available to medium sized businesses (new and existing Nationwide customers) with a maximum headcount of 500 and either a maximum turnover of £100 million or maximum assets of £100 million. Application forms to open either account are available by visiting www.nationwidecommercial.co.uk or by contacting us on 0800 66 55 11.

Corporate Saver
Corporate Saver is an instant access account that pays a variable rate of 1.00% gross p.a./AER* for balances of £100,000 or more with a maximum balance of £25 million allowed. Corporate Saver allows unlimited withdrawals and deposits.

95 Day Corporate Saver
95 Day Corporate Saver is a variable rate, 95 day notice account that pays a return of 1.30% gross p.a./AER*. The minimum investment on the account is £100,000 with a maximum balance of £25 million permitted. Withdrawals are permitted subject to 95 days notice.

Monthly and Annual interest options are available for both the Corporate Saver and 95 Day Corporate Saver.

Bryce Glover, Nationwide Commercial’s divisional director, said: “With economic conditions remaining uncertain, businesses have become more and more prudent when investing their money and are starting to hold onto more cash and increase their savings balances.

“The business savings market is highly concentrated with the top five deposit taking institutions accounting for 98 per cent of the market, which isn’t necessarily a healthy position for either the market or business savers. Nationwide is a strong and trusted brand whose mutual status is a strength and key point of difference. The launch of these new accounts means that there is a now a real alternative on the high street for commercial deposits.

“If any reassurance was necessary, Nationwide has been in the personal savings market for 160 years and currently has over 11 million savers. These new accounts are competitive and Nationwide is a safe haven that offers long-term good value for hard earned cash.”

Notes to editors:

*AER stands for Annual Equivalent Rate which illustrates what the interest rate would be if interest was paid and compounded each year.  The gross rate of interest is the interest rate payable before any income tax is deducted (if a customer pays tax) and the net rate of interest is the interest payable after any income tax is deducted (if a customer pays tax).

Applications are required for all products.  Further details of terms and conditions available on request.

Interest rates – correct on 5 March 2012

Business Saver (annual) AER Gross p.a.
£10,000+ 1.30% 1.30%
Business Saver (monthly) AER Gross p.a.
£10,000+ 1.26% 1.25%
95 Day Business Saver (annual) AER Gross p.a.
£10,000+ 1.60% 1.60%
95 Day Business Saver (monthly) AER Gross p.a.
£10,000+ 1.56% 1.55%
Corporate Saver (annual) AER Gross p.a.
£100,000+ 1.00% 1.00%
Corporate Saver (monthly) AER Gross p.a.
£100,000+ 1.00% 1.00%
95 Day Corporate Saver (annual) AER Gross p.a.
£100,000+ 1.30% 1.30%
95 Day Corporate Saver (monthly) AER Gross p.a.
£100,000+ 1.26% 1.25%

The rate will drop to 0% if the balance falls below £10,000 on each of the Business Saver accounts or £100,000 on each of the Corporate Saver accounts.

About Nationwide Commercial

  1. A leading lender in the UK commercial property, social housing and PFI markets with a loan book in excess of £22 billion.
  2. Customers range from housing associations to private property investors to institutional funds and specialist property firms to major public limited companies.
  3. Nationwide has committed over £2 billion to the UK PFI/PPP sector to over 80 separate projects including the first affordable housing PFI.
  4. Leading player in UK Social Infrastructure projects (ranked 2nd in the Infrastructure Journal 2009 League Table for Mandated Lead Arrangers).
  5. Nationwide Commercial is a leading lender to affordable housing providers becoming the first to commit over £9 billion to the sector.

About Nationwide Building Society
Nationwide is the world's largest building society as well as one of the largest savings providers and a top-three provider of mortgages in the UK. It is also a major provider of current accounts, credit cards, ISAs and personal loans. Nationwide has around 15 million members.

Since the credit crunch began in 2007, Nationwide has remained profitable against a very difficult economic environment.  In the half year ending September 2011 Nationwide made a strong underlying profit of £172 million – up 17% from the previous year.  Its strong financial performance and prudent business model means that Nationwide is included in Global Finance magazine’s Top 50 Safest Banks in the World.

Nationwide has around 700 branches and customers can manage their finances in branch, on the telephone, internet and post.  The Society has around 16,000 employees.  Nationwide's head office is in Swindon with administration centres based in Northampton, Bournemouth and Dunfermline.  The Society also has a number of call centres across the UK.

Please note: If you are a customer looking for information on our products and services, please visit the main website.