Savings choice for 10 million.(Business)

MAJOR changes to savings accounts offered to Nationwide's ten million savers come into effect on Friday.

Nationwide will give savers the choice of picking an account with an initial bonus -- which they will need to move when the bonus runs out -- or going for an account which offers a longer-term competitive, but not top, rate.

Accounts that won't have a bonus include its branch-based Champion range.

This will tie rates to the best top-paying deals (including bonuses) from leading competitors.

New savers will earn 1.41 pc after tax (1.76 pc before) on a minimum [pounds sterling]1,000 from July 1. Savers who already have an account will be unaffected by the change.

With Champion Saver you have to give 60 days' notice before making a withdrawal. It's the same with Champion Isa, but you can make one immediate withdrawal a year.

New customers can earn 1.75pc tax-free with its E-Isa; again this does not have a bonus.

Another new offering is online Isa Issue 1. this easy access internet-based account pays a minimum 2.75 pc taxfree until January 31, 2013. After this the rate will drop to 1 pc.

It is only available to members who run certain other accounts, such as Flexaccount.

Nationwide is also launching a 75-day notice savings and cash Isa account where the rates will be boosted by a bonus. Rates start at 2.5pc.