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Nationwide ups interest on cash ISA

Emma Lunn
Written By:
Emma Lunn

The building society has increased the interest rate on its 1 Year Triple Access Online ISA to 0.80% for 12 months.

The rate of 0.80% makes Nationwide a competitive option for an easy access ISA, although the rate is beaten by Shawbrook Bank which pays 0.92% on its easy access cash ISA, and Sainsbury’s Bank which pays 0.95%. However, Nationwide savers are only allowed to make three withdrawals each year from the account. Subsequent withdrawals will revert the interest rate to 0.01% for the remainder of the period.

Nationwide’s 1 Year Triple Access Online ISA accepts transfers in, so savers can transfer balances from either another Nationwide ISA or from an ISA account with another provider to benefit from the increased rate.

Nationwide has also upped the rate on its 1 Year Triple Access Online Saver to 0.8%.

Nationwide’s ISAs and savings accounts can be opened and managed online via online banking and mobile banking, and have a minimum operating balance of £1.

New fixed rate products

Nationwide has also launched new issues of its fixed rate ISAs, bonds and online bonds paying increased rates.

The new rates are:

  • 1 Year Fixed Rate ISA – 0.80% AER/tax-free
  • 1 Year Fixed Rate Bond and Online Bond – 0.80% AER/gross
  • 2 Year Fixed Rate ISA – 1.40% AER/tax-free
  • 2 Year Fixed Rate Bond & Online Bond – 1.40% AER/gross
  • 3 Year Fixed Rate Online Bond – 1.90% AER/gross
  • 5 Year Fixed Rate Online Bond – 2.00% AER/gross

The rates are available for balances of £1 or more and monthly interest options are available on fixed rate ISAs and bonds (excluding online bonds) for those who prefer to get a regular income from their savings.

The society’s fixed rate ISAs accept transfers in, so people can move ISA balances from other providers or from an existing Nationwide ISA.

Tom Riley, director of banking and savings at Nationwide Building Society, said: “Many savers will look to utilise their ISA allowance at the start of the new tax-year. Our latest Triple Access Online ISA offers one of the highest rates on the market and will appeal to those looking to save with a brand they know and trust.

“This ISA accepts transfers in, so savers will benefit from Nationwide’s ISA transfer promise, which sees the society pay interest from the day it receives the application, so savers don’t lose out on interest while the transfer is in progress.

“At the same time, we are also increasing rates on our fixed rate ISAs. Unlike many other providers, Nationwide allows savers to split their ISA allowance between variable and fixed rate products, giving members more flexibility.”