Savings accounts provider, Nationwide UK, looks set to depart the Irish market, which will leave 14,000 customers needing to find a new savings account.
The savings options available to Irish customers are about to get even worse.
The rates being offered to savers are already at an all-time low and now it is being reported that Nationwide UK is to cease providing accounts to leave the Irish market. This is expected to leave about 14,000 customers needing to find a new home for their savings. Tweet this!
A big loss
Nationwide UK began offering accounts to Irish savers in 2009 and has frequently provided some of the best rates of return.
Currently, the bank is offering a 2.00% rate to regular savers, which is one of the best returns available in this historically low-interest rate environment.
The building society is reportedly departing these shores to focus more on its core market and one wonders if this is an example of Brexit having an immediate and direct effect in Ireland.
Nationwide UK's 14,000 customers are likely to be given plenty of time to find a new home for their money before accounts are closed, but attractive options are hard to find.
Just last month, AIB, Bank of Ireland and KBC all announced fresh savings rate cuts, and AIB is set to cut rates again in May.
The low-interest environment makes it more important than ever for savers to compare all of their options and shop around before committing to a new provider.
Best savings rates currently available
Despite the continuing cuts, there are still decent returns available, if customers know where to look and are willing to adapt to certain restrictions.
For example, EBS’s Family Saver Account currently offers a rate of 3.00%, but it requires a monthly contribution.
For lump sum savers, the rates aren’t as attractive, unfortunately.
At the time of writing, KBC's 12-month fixed rate account is offering a return of 0.80%, which will give an after-DIRT return of €48 on a lump sum of €10,000 locked away for a year.
Permanent TSB is offering a 0.75% rate for lump sum savers.