Nationwide Credit Card Rate Increase: Impact & Next Steps

If you’ve got a Nationwide credit card, you might have noticed something unpleasant on your latest statement. The building society has raised interest rates on some existing accounts — in one case from 15.9% to 20.9% — while simultaneously launching a savings account paying 8%.

Nationwide credit card APR range: 9.9%–24.9% per annum (variable) ·
Example customer rate increase: From 15.9% to 20.9% (5 percentage points) ·
Maximum reported hike: Up to 50% on some accounts ·
News report date: March 5–6, 2025 ·
Savings account rate launched simultaneously: 8%

Six data points capture the core picture, one pattern: Nationwide is charging existing cardholders more while offering new savers a deal that looks generous by comparison.

The spread between Nationwide’s highest purchase APR and the Bank of England base rate (4.5%) sits at 20.4 percentage points — the widest margin in 15 years, according to one analysis.

What is the current interest rate on a Nationwide credit card?

Nationwide’s standard credit card APR ranges from 9.9% to 24.9% per annum, variable. The rate you pay depends on your individual credit circumstances, and Nationwide Building Society (the UK’s largest mutual) says it reviews rates regularly. On a £100 balance at 24.9% APR, you’d incur roughly £2.08 in monthly interest if you don’t pay in full.

New customers applying today are likely to face the top end of that range. A front-book rate of 24.9% was reported in early 2025, described by the analysis site James4Nationwide as an all-time high over the previous 15 years. That puts Nationwide’s pricing above many rivals for new applicants.

The pattern: existing cardholders face higher costs while the mutual projects a generous saver image.

Why has my credit card interest rate gone up?

Nationwide increased rates on some existing accounts in early March 2025. Simon, a cardholder, reported his personal rate jumped from 15.9% to 20.9% — a 5-percentage-point hike — in a case study published by James4Nationwide. A follow-up report from This is Money, covered by the same source, accused the building society of “rampant profiteering,” noting that the base rate hadn’t moved enough to justify such a sharp rise.

“Nationwide’s credit-card pricing is becoming increasingly like that of a retail bank, not a member-owned mutual.”

— This is Money reporter, via James4Nationwide

The wider market context matters. Moneyfacts (a leading UK rate comparison firm) reported that the average credit-card purchase APR across the UK hit 35.8% in early 2025 — the highest since its records began in June 2006. So Nationwide isn’t acting in isolation, but the speed and size of the increase on existing accounts has drawn extra scrutiny.

What this means: existing customers are absorbing costs that could be used to fund the shiny new savings offer. The trade-off is plain — higher borrowing costs subsidise higher savings returns.

What this means: the contradictions in Nationwide’s pricing may test member loyalty.

Is 34.9 APR good or bad?

A 34.9% APR is considered high. Experian (the UK credit reference agency) generally defines a good APR as below 20%. Rates above 30% are typically reserved for subprime or higher-risk credit cards. For context, Nationwide’s maximum standard APR is 24.9% — still below that threshold, but not by much.

• Good APR: Below 20% (Experian benchmark)
• Average APR (UK): 35.8% (Moneyfacts, early 2025)
• Nationwide top rate: 24.9%
• 34.9% APR: Subprime territory

The pattern: if you’re being quoted 34.9%, you’re likely in a higher-risk bracket. That might reflect your credit history, the card type, or the lender’s pricing strategy. It’s almost never a “good” deal.

What Is a Good APR for a Credit Card?

A solid APR for most UK cardholders is anything under 20%. Experian’s guidance puts that benchmark clearly. Your actual APR depends on your credit score, the type of card (rewards, balance transfer, purchase), and the lender’s risk model. Zero-percent introductory offers are temporary — they revert to a variable APR, often around 20–25%.

Nationwide’s lowest rate (9.9%) is genuinely good. Its highest (24.9%) is average to slightly above average. The catch: if you were at 9.9% and got bumped to 15.9% or higher, your “good” card just became an expensive one.

What does the Nationwide credit card rate increase mean for customers?

If your rate goes up, your monthly minimum payment and total interest cost rise. On a £1,000 balance at 20.9% APR, you’d pay about £17.42 in interest per month if you only make the minimum — compared to £13.25 at the old 15.9% rate. Over a year, that’s nearly £50 more. UK Finance data shows that 47.8% of credit-card balances incurred interest in November 2025 — so almost half of cardholders are paying the price.

• Immediate impact: higher monthly payments
• Long-term impact: more total interest if you carry a balance
• Mitigation options: pay more than minimum, balance transfer to a 0% offer, switch to a lower-rate card

The decision for Nationwide members is clear: either accept the new cost and adjust repayment habits, or vote with your feet and switch to a competitor. The building society has handed customers a reason to shop around.

For Nationwide members carrying a balance, the decision is stark: accept the higher cost and repay faster, or switch to a competitor that hasn’t raised rates on existing customers. The mutual’s contradictory strategy — hiking borrowing costs while wooing savers — may ultimately push its most loyal members to leave.

For those affected by the rate hike, the Virgin Money credit card guide offers practical steps for managing your account and payments.

Frequently asked questions