We like higher rates

Tis the season to be merry and Nationwide is leading the festivities in the run up to the Christmas season.

Following on from the announcement this week that the Bank of England raised the base rate by a quarter of a point, Nationwide was the first to make its announcement that its savings accounts were also going up.

The variable rate savings and banking rates will go up by 0.25%. But the real good news comes from its instant access cash Isa and e-savings accounts. They will both rise by 0.50% - both paying a rate of 4% gross.

Philip Williamson, Nationwide's chief executive, said: "We are delighted to give savers something to cheer about. In the recent low interest environment, UK savers have had a challenging time."