The Nationwide FlexDirect offers five percent on balances up to £1,500, with customers obliged to pay in at least £1,000 a month. Transfers from other Nationwide accounts or Visa credits do not contribute to the £1,000 minimum deposit.
The five percent introductory offer lasts for a year, and after this the rate drops to the standard 0.25 percent.
Customers who have previously had a FlexDirect account with an introductory rate will not be eligible for the offer.
To apply for a FlexDirect account, a person must be 18 or over and a UK resident, with the account to be 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.
When applying for FlexDirect, a person can set up a brand new bank account or switch their current account from another bank or building society to Nationwide.
Current Nationwide customers also have the option to switch their existing Nationwide current account to a FlexDirect.
Customers can manage their account using Internet Banking, the Banking app, over the phone or using cash machines.
Some transactions or requests will not be available via these channels, in which case the customer will need to visit a Nationwide branch.
The central bank’s Monetary Policy Committee (MPC) postponed their meeting to decide on the fate of the base rate until September 22 in light of the week of national mourning for Queen Elizabeth.
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.
Ms Haine said: “The fiscal move from the Government is unlikely to prevent the Bank of England, from raising the base rate by an expected 50 basis points to 2.25 percent at its meeting next week as it strives to contain rampant inflation and ward off any fallout from people having more money in their pockets.
“Consumers may now be able to find easy-access accounts with rates as high as 1.85 percent and fixed-interest rates of 3.75 percent – the highest level in more than a decade thanks to the BoE’s spate of interest rate rises – but this is still no match inflation of almost 10 percent.
“The only consolation is that the Bank of England is widely expected to raise the base rate again next week, a move that should see savings rates edge up further.
“The key for savers looking to mitigate the damaging effect of inflation is to shop around for the best deals on the market.”
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.”