Nationwide has ditched its popular loyalty savings accounts as the building society 'revamps' its range.

In another blow to customers who have been affected by falling rates at Britain's biggest mutual, the Loyalty Saver, which paid increasing rates of interest the longer the customer stayed a Nationwide member, was recently scrapped for new customers after seven years on offer.

The building society's Loyalty Isa, which was only launched last year, has also been pulled for new customers.

At present, there are nearly 1.7million Nationwide members that hold either a Loyalty Saver or a Loyalty Isa account.

Scrapped: Nationwide has axed its popular Loyalty Saver account and its Loyalty Isa account

Currently, someone who has been with the society for 15 years gets a 1.1 per cent rate on the Loyalty saver, while the interest is 0.95 per cent for those who have been a member for 10 to 14 years.

A member for five to nine years earns 0.85 per cent and those who have been a member for one to four years will get 0.8 per cent.

These can all be beaten in the independent This is Money savings tables.

These rates are much better than the figures offered by Nationwide on its easy-access savings which is just 0.1 per cent and its instant-access Isa, which is 0.3 per cent.

Popular accounts When Nationwide launched the Loyalty Isa last May, it said: 'Since it was first launched in October 2012, more than 1.6million members now have a Loyalty Saver account, making it one of our most popular savings products ever. 'The majority - 80 per cent have been members for 15 years or more.

Nationwide's Flexclusive Isa and Limited Access Saver are also being withdrawn.

However, Nationwide launched an 18 month bond just for existing customers last week which pays 1.5 per cent and can only be opened in branch.

The rate could well drop after the fixed period though while early withdrawals incur a charge of 180 days interest.

It is also easily beaten by rival banks including Al-Rayan Bank who offer return rates of 2.05 per cent and BLME who offer rates of two per cent on their Premier Deposit Account when the money is put away for 18 months.

Savings: Nationwide has started a member exclusive 18 month bond for existing customers

Tom Riley, Nationwide's director of savings, said: 'By refreshing our range, we have not only given members a clear understanding of what is on offer and how it can meet their individual needs, but raised our headline variable rate to 1.21 per cent - increasing our competitiveness.

The reward for loyalty? A worse rate than rivals I have been a Nationwide member for almost 15 years and initially gladly took out some of its 'loyalty products' when they were offered, writes Simon Lambert. However, the reward for loyalty at Britain's biggest building society, where profits are supposedly ploughed back into offering members better deals, has been in decline for some time. In fact, in recent years taking one of Nationwide's loyalty savings accounts has merely guaranteed one thing: you aren't getting the best rate on the market. The building society has been hacking back savings rates - and its deals for loyal members can be beaten by many rivals that can easily be found in This is Money's savings tables. The rate cuts reflect moves elsewhere in the market and on other Nationwide accounts. Earlier this year, I wrote about how it had cut my daughter's savings rate too. Nationwide blames fierce competition in the mortgage market for the cuts, but it recently hiked its overdraft interest rate to 39.9% and still made £788million in profit last year. A ray of light is that Nationwide is upping its standard easy access savings rate to 1.21%, albeit that can still comfortably be beaten elsewhere. The building society has also repeatedly come under fire for high executive pay, including at its latest AGM. Boss Joe Garner is in line to be paid almost £2.4million this year. At least that's one person rewarded by Nationwide for their loyalty.

'Rewarding loyalty is a core part of Nationwide's purpose. That is why, within our new range, we will be introducing limited-time, member exclusive products offering enhanced rates, the first of which is the Member Exclusive Bond.'

Tom Adams, head of research at independent savings advice site, Savings Champion said: 'While on the face of it, this decision is not good for existing Nationwide savers, we mustn't forget that those savers who already hold the account will continue to receive the preferential rates – though of course it is certainly not guaranteed to stay this way indefinitely.

'It is also worth noting that at the same time, Nationwide released a new online account that is paying a higher interest rate and is available to all – so these changes from Nationwide are by no means all doom and gloom.

'In fact, the new rate of 1.21 per cent on the provider's new standard online account and online cash Isa offerings far outstrip anything available from the big high street names that are Nationwide's traditional rivals and still the first point of call for many savers.

'That said, savvy savers can still find better rates available from the smaller challenger banks and so better returns are available for those who are prepared to look at some of the less well-known providers in the savings market.'

The new online account allows three withdrawals per year.

Nationwide also revealed it is opening a 0.75 per cent variable rate Isa which, again, can only be opened in branches and allows three withdrawals a year – after which the rate drops by 0.1 per cent for every other withdrawal.

An Isa with a rate of 1.21 per cent can also be opened online but the rate drops to 0.75 per cent after the first year.

Nationwide claimed its new savings range 'offers competitive products that are easy to understand and rewards members' loyalty.'

James Blower, of Savings Guru, added: 'This is a continuation of Nationwide's efforts to trim the cost of interest it pays to savers.

'It has already culled its five per cent regular saver, it's three per cent interest rate on its Flex Plus account and other savings rates including its Junior Isa and Smart Limited Access Saver.

'The reason it is doing this is it is coming under increasing pressure on margins on its lending activities.

'For example, in the mortgage market it currently has a number of products charging less than two per cent including some as low as 1.44 per cent.

'As it is under commercial pressure on its lending activities, it is cutting savings rates to maintain profitability.

'What will hurt Nationwide customers more is not the small amount of extra interest they will be losing but the fact that their loyalty as members is no longer being recognised and rewarded.'

Nationwide is continuing to offer a rate of 2.5 per cent on its Help to Buy Isa with parents also able to save for their children by putting money into a Future Saver account which offers three per cent for those with a main current account with the society and two per cent for all other customers.