Interest rates: Nationwide offers five percent rate for savers - but only on select accounts

Savers can take advantage of Nationwide Building Society’s offer of an interest rate of up to five per cent as well as the chance of a £250 boost in a competition prize draw.

Although, customers will only be able to get the interest rate on savings up to £50 per month for a limited time period of two years.

Nationwide's regular savings account, The Start to Save Issue 2 is designed to help people start saving up to £50 a month.

And those customers who put away the money regularly will be entered into the £250 prize draw.

Britons will need to increase their balance by at least £25 but no more than £50 in each of the six months leading up to the prize draw.

The chance of winning the jackpot is between one in 34 and one in 67 depending on the size of the prize fund, according to Nationwide.

Draws are set to take place on February 21, 2023, August 22, 2023 and February 20, 2024.

Nationwide stated: “If you increase your balance by more than £50 in a month running up to a prize draw, you will not be entered for that prize draw.

“If you take money out of your account during a calendar month, then you may need to pay some or all of it back in.

“For example, if your account balance is £100 at the beginning of the calendar month and you then take out £25, you'll need to pay in at least £50 [back in] to increase the balance to at least £125 by the end of the calendar month.”

Rachel Springall, finance expert at Moneyfacts said savers looking to “ignite” their savings habit could open a fixed term regular savings account.

"The Start to Save Issue 2 from Nationwide Building Society may be an enticing choice as not only will savers earn a competitive variable rate, but they can also take part in the savings prize draw,” she said.

"The entry into the prize draw is subject to their monthly deposits so it's important they check all the terms and conditions before they open an account.”

Lucinda O’Brien, a personal finance expert from money.co.uk agrees as she told the Express: “Any savers who don’t move their money to the highest interest rate savings account will be missing out.

“It’s important to note, the highest rates will often be found in fixed-rate savings accounts, which is not ideal for those who may need to dip into their savings over the next few months due to the current cost of living."