Nationwide ups ISA rate
The mutual will launch a new issue of its 1 Year Triple Access Online ISA from Thursday 17 March, paying an interest rate of 0.70% AER (variable).
It allows three withdrawals during the 12-month term but a subsequent withdrawal takes the interest rate down to just 0.01% for the remainder of the period.
The Triple Access Online ISA allows transfers in and Nationwide confirms existing customers can transfer balances from another ISA account or from another provider.
After 12 months, the account will automatically switch to one of Nationwide’s instant access accounts.
Joint market-leading ISA rate
Rachel Springall, finance expert at Moneyfacts, said: “The latest rate rises by Nationwide is encouraging news for savers, and as a well-known brand its variable rate ISA is joint market-leading in its sector at 0.70% [based on comparable £1 deposit amount] and is much more competitive than its high-street bank rivals offering a similar product.
“However, savers who want to start up a new ISA and want flexibility with their cash may prefer to choose the 0.70% offer from Marcus by Goldman Sachs as it allows unlimited withdrawals, but not transfers in.”
Springall added that as the ISA market improves, savers can find more attractive fixed ISA rates, particularly from challenger banks which can pay up to 1.21% over one-year.
“However, interest rates on ISAs can be beaten outside of an ISA wrapper, so its important savers consider their Personal Savings Allowance (PSA) and their ISA allowance when comparing offers,” she said.
Other rate rises at Nationwide
The building society has also unveiled rate changes/new product issues to the following range from Thursday:
- 1 Year Triple Access Online Saver – 0.70% AER/gross (variable)
- 1 Year Fixed Rate ISA – 0.50% AER
- 1 Year Fixed Rate Bond/Online Bond – 0.50% AER/gross
- 2 Year Fixed Rate ISA – 1% AER
- 2 Year Fixed Rate Bond/Online Bond – 1% AER.
Tom Riley, director of banking and savings at Nationwide Building Society, said: “Savers will often wait until this time of year to fully utilise their ISA allowance so, with the end of the tax year fast approaching, we have decided to increase the rate on our Triple Access Online ISA. The new rate means we are offering savers the opportunity to use their ISA allowance in a product providing a competitive rate coupled with the ability to access their money when needed.
“ISAs remain an important product for many savers, as interest from a cash ISA doesn’t count towards your Personal Savings Allowance, so it remains a tax efficient way to save for the short or long term. However, for those who may have already used their ISA allowance for this year, we are also increasing the rate on our Triple Access Online Saver. We also like to give savers a choice of products in which to save their money, which is why we are also launching a new range of one and two-year fixed rate products.”