Nationwide has moved to protect savers from ultra-low interest rates, saying it will maintain rates on savings accounts for regular customers.

New chief executive Joe Garner, who took on the top job in April, said: “We will protect members who save regularly and who are building up a deposit to buy their first home – as a result, the Flexclusive Regular Saver at five per cent, the FlexOne Regular Saver at 3.5 per cent and the Help To Buy ISA at two per cent are being maintained at their current rates.”

Mr Garner said that Nationwide will pass on the interest rate cut, from 0.5 per cent to 0.25 per cent, to borrowers in full.

The move comes despite pressure the building society is under from the cut in rates.

Nationwide, based at Pipers Way, Swindon, saw underlying pre-tax profits fall six per cent to £368 million in the three months to the end of June, largely due to increased costs and a reduction in net interest income.

The building society said: “The sustained low interest rate environment and competition in core markets will maintain pressure on margins. And we anticipate profits are likely to moderate in the period ahead.”

Nevertheless, residential mortgage lending hit £8.6 billion, an increase of 26 per cent on the same quarter last year.

And the number of current accounts opened in the quarter increased by 21 per cent to 139,000 and statutory profits increased from £379 million to £401 million, driven by derivative and hedge accounting gains.