Nationwide's latest ISA changes will be welcome news for savers, with an impressive 4.25% rate available. ISAs remain one of the best ways for Brits to store their cash, as they earn tax-free interest on up to £20,000 (although this limit drops to £12,000 next year). The building society recently announced the introduction of a new Single Access ISA and increased rates across its Fixed Rate ISA range.
Both took effect on March 6, with additional changes giving savers more to consider. Nationwide will also withdraw its existing 1 Year Triple Access ISA and 1 Year Triple Access Saver, both currently priced at 3.30%. Meanwhile, it is also launching two new accounts: its 1 Year Single Access ISA and its 1 Year Single Access Saver, both with a rate of 4.00%. Perhaps the most appealing change recently introduced bythe building society is the increased rates on its 1, 2, 3 and 5 Year Fixed Rate Cash ISAs.
The rate will increase to:
- 1 Year Fixed Rate ISA - 4.05%
- 2 Year Fixed Rate ISA - 4.05%
- 3 Year Fixed Rate ISA - 4.05%
- 5 Year Fixed Rate ISA - 4.25%
"We're pleased to be increasing rates across our ISAs and our instant access savings product, giving members even more longterm value and meaningful benefits," said Richard Stocker, head of savings.
"Combined with our Branch Promise, we're proud to be bringing even more value to the high street, further demonstrating our commitment to offering positive, competitive rates for our members."
Those who wish to take advantage of the rate must be comfortable with locking their money away for five years to earn this rate. While it is a decent deal, there are other Fixed-Rate ISAs out there.
A Fixed-Rate ISA is typically good for people with long-term savings goals, while a Cash ISA is typically better for people with short-term savings goals.
According to Moneyfactscompare, the best Fixed Rate ISA rates at the moment includes that of Hodge Bank. It is a 1-Year Fixed-Rate ISA account, and has an interest rate of 4.36%.
Meanwhile, there is the Five-Year Fixed-Rate ISA from Chetwood Bank, with an impressive rate of 4.50% AER.
