Nationwide will not pass on full 0.25% interest rate rise to most savers

Many of the building society's savers will see only a 0.1% increase

Nationwide is not passing on last week's Bank of England's 0.25% rate rise in full to savers in the first sign that big financial institutions will use the base rate to increase profit margins.

The building society, one of the biggest mortgage and savings institutions in the UK, said that while its tracker mortgage customers will see a 0.25% rise in their payments, many of its savers will see only a 0.1% increase in rates.

Related: Bank of England raises interest rates to 0.75%