2 min
June 19, 2024

NuWealth GB Bank Base Rate Tracker Savings Account

Guide: Understanding our GB Bank Base Rate Tracker Savings Account

In this article, we’ll guide you through everything you need to know about our GB Bank Base Rate Tracker Savings Account.

The first thing you’ll notice is that this is a ‘Base Rate Tracker’ savings account. What does that mean?

Tracking the Bank of England rate

Most savings accounts set their interest rates (that’s the amount you earn on your balance) according to some external metric. Often, that’s the Bank of England’s base rate.

But while they may set their rates relative to the level of the  Bank of England’s base rate, it can often take quite some time for the rate on your savings account to change. 

The NuWealth GB Bank Base Rate Tracker Savings Account, tracks the Bank of England base rate in near real time. This means we can update your interest rate accordingly, and usually within 24 hours.

Note: Some savings accounts have a fixed rate, meaning you’ll get that rate no matter what. Which can have its advantages, but it means you can’t capitalise on opportunities when they arise.

Okay, but what is the base rate?

The Bank of England base rate, sometimes just called ‘the interest rate’ is the most important interest rate in the UK. It’s put in place to influence other interest rates on things like loans, savings accounts, and mortgages. 

The great thing about our savings account tracking the base rate, is that if the Bank of England rate rises, so will the interest you earn on your NuWealth Savings Account.

And because the interest rate on your savings account updates automatically, you’ll always be up to date. No need to refresh, or hunt around looking for a better deal.

So why would you choose a savings account instead of an investment account?

Well, actually, you wouldn’t. For a fully diverse portfolio you’d have both an investment account and a savings account. That’s because they’re used for different things.

The benefits of opening a savings account

The biggest benefit of opening a savings account is the stability of knowing that your money will grow in a predictable manner. Or rather, semi-predictable, depending on the base rate.

The different uses of a savings account vs. an investment account

Both a savings account and an investment account can help you reach your financial goals, except they come with different risk levels. This is why we believe it’s a good idea to have both.

A savings account, with its lower risk, relatively stable interest rate, offers a way to move towards your financial goals with a high degree of accuracy and control. Pay into a savings account each month, and you’ll build wealth through both your regular interest, and the power of compound interest.

An investment account offers greater potential for more profit, faster. However, because you’re investing in real companies, there is always a risk that the value of your portfolio could go down.

Opening a savings account with NuWealth, alongside a NuWealth investment account, makes it easy to move towards your financial goals with confidence, since you know that you’re going a great job of balancing risk and reward.

A NuWealth Savings Account also comes with additional benefits, which make it the perfect companion to a Standard investment account. Here’s a reminder:

  • 4.91% AER interest rate, paid daily
  • Rate tracks the Bank of England base rate (minus up to 0.5%) 
  • Updates automatically within 24 hours, so you get the best rate effortlessly
  • Withdraw once a month with no fees or notice periods
  • Deposits FSCS protected up to £85,000

Save and invest in one place

For many people, setting up and managing an investment account is time-consuming enough, let alone adding a savings account. We’ve already made life easier for investors with our easy-to-use investment accounts, and features such as Auto Invest.

With the addition of our first savings account, you can do both from the same app. Easy to learn, easy to use, easy to maintain. Just how we like it.

You can open a NuWealth Savings Account if you’re aged 18 or over, and have a valid photo ID. 

There’s a minimum £500 initial deposit, and you can deposit up to £250,000.

Continue reading: What is a notice savings account?

Open a NuWealth Savings Account

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