The 5% AER rate (4.89 gross) will be available for new applications opened from 21 June on balances up to £1,500 for the first 12 months. Those switching their current account could also benefit from the Society’s switching incentive, which pays £125 to existing members who switch their current account to the Society and £100 to new customers.

The building society said it is hoped that the additional interest and switching incentive helps members get more value for their money at a time when they need it most.

FlexDirect also offers an interest-free overdraft for the first 12 months, meaning eligible applicants can switch their overdraft from their existing current account provider or another Nationwide account.

Debbie Crosbie, chief executive at Nationwide Building Society, said: “Being able to offer highly competitive rates is one of the biggest benefits of mutuality. This market leading rate will help new and existing members make the most of their money, which is particularly important right now. The FlexDirect current account also has an introductory interest-free overdraft to give some peace of mind to those struggling financially and freeing them to focus on repaying other debts.”