New ISA accounts from Nationwide

13 February 2012

From Friday 17 February, Nationwide is making a number of positive changes to its ISA range designed to encourage savers to use their 2011/12 cash ISA allowance. The Society will be launching two new competitive fixed rate ISAs, along with new issues of its Online ISA and 75 Day ISA accounts.

Online ISA – Issue 3

Nationwide will launch the third issue of its Online ISA account. Available online to Nationwide customers with a card-based account, Online ISA – Issue 3 will pay a rate of 3.10% AER*/tax-free, which includes a bonus of 2.10% that is fixed until 30 September 2013. As well as having a market-leading rate that will remain fixed for 18 months, the Online ISA is made even more attractive by the fact that the account allows unlimited withdrawals and deposits (subject to ISA allowance), which means greater flexibility for customers.

Online ISA allows new subscriptions and transfers in of existing cash ISA balances.

  Online ISA – Issue 3
Availability Online only at www.nationwide.co.uk
Withdrawals Instant access
Deposits Unlimited, subject to annual ISA allowance
Min. opening balance £1,000
Min. operating balance £1

Fixed Rate ISAs

The Society is also launching two new competitive fixed rate ISAs. The rates for annual interest on balances of £1 or more are:

  • Six-month Fixed Rate ISA paying 2.77% AER* tax-free.
  • 18-month Fixed Rate ISA paying 3.30% AER* tax-free.

Monthly interest options are also available for all Nationwide's Fixed Rate ISAs.

Nationwide's previous range of Fixed Rate ISAs will be withdrawn from sale at the close of business on Thursday 16 February 2012.

75 Day ISA – Issue 2

A new issue of the 75 Day Saver account will also be launched, available to both new and existing customers from any Nationwide branch. Until 30 September 2013, 75 Day ISA – Issue 2 will include a fixed introductory bonus of between 1.50% and 1.70% (depending on the balance of the account) AER* tax-free for balances of £1,000 or more. This means 75 Day ISA will pay a return of between 2.50% and 2.70% AER* tax-free variable including the introductory bonuses. Furthermore, savers will be able to make one free withdrawal per tax year without notice.

75 Day ISA – Issue 2 allows new subscriptions and transfers in of existing cash ISA balances.

  75 Day ISA – Issue 2
Availability In branch
Withdrawals One free withdrawal per tax year. For any further withdrawals in a specific tax year, penalty-free access is available provided 75 days advance notice is given on the amount to be withdrawn. For immediate access, 75 days loss of interest will be applicable
Deposits Unlimited, subject to annual ISA allowance
Min. opening balance £1,000
Min. operating balance £1

Richard Marriott, Nationwide's head of savings, said: "The fact that ISA allowances continue to rise each year is great news – more savers will be able to save more of their money tax efficiently. However, savers should be focusing on using this year's ISA allowance before the tax year ends. If they haven't used up all of the current cash ISA allowance of £5,340, Nationwide's ISA range is definitely one to consider. With a range of fixed rate, instant access, online and notice account cash ISAs available, Nationwide's cash ISA range suits a wide variety of needs.

"And remember that if you're a saver looking to transfer your existing ISA money to Nationwide, we have committed to paying interest on receipt of your cash ISA transfer application as part of our seven Savings Promises¹. Up to November 2011, we paid an extra £1.6 million of interest as a result of that promise - further proof to savers that we are 'On Your Side'.

"Overall, I think the run-up to the end of the tax year is an exciting time to invest in an ISA. Unfortunately, there are still a large number of eligible people without an ISA, so my biggest piece of advice is simply use it or lose it!"

Notes to editors:

* AER stands for Annual Equivalent Rate and illustrates what the interest rate would be if interest were paid and compounded once each year. Tax-free is the contractual rate of interest payable where interest is exempt from income tax.

  • Applications are required for all products. Further details of terms and conditions available on request.

1 Provided that funds are free to move and not subject to any notice period.

Online ISA – Issue 3

In order to apply for an Online ISA, a customer must already hold a Nationwide FlexAccount, Invest Direct, CashBuilder Card or Smart Card.

RATES FOR ONLINE ISA – ISSUE 3, EFFECTIVE FROM 17 FEBRUARY 2012

ONLINE ISA ISSUE 2 AER tax-free (including fixed bonus) AER tax-free (variable)
£1,000+ 3.10*% 1.00%
£1 - £999.99 0.25% 0.25%

*Rate includes bonus of 2.10% fixed until 30 September 2013

Balances of £1,000+ offer an introductory rate fixed until 30 September 2013, after this date it reverts to a variable rate, currently 1.00% AER tax-free. For any day the balance goes below £1,000 you earn a rate of 0.25% AER tax-free variable and no bonus.

Parity on Fixed Rate Bonds and Fixed Rate ISAs

Where Nationwide has a Fixed Rate ISA for the same term as a Fixed Rate Bond, the ISA gross rate and AER are equal to the Bond with an equivalent term.

Fixed Rate ISAs:

  • The products may be withdrawn without notice.
  • No part withdrawals allowed.

Details of the rates on all Nationwide Fixed Rate ISAs:

Interest Rates: Fixed Rate ISAs – correct on 17 February 2012

Six-month FRISA (annual) AER tax-free Gross p.a.
£1+ 2.77% 2.75%
Six-month FRISA (monthly) AER tax-free Gross p.a.
£1+ 2.73% 2.70%
18-month FRISA (annual) AER tax-free Gross p.a.
£1+ 3.30% 3.30%
18-month FRISA (monthly) AER tax-free Gross p.a.
£1+ 3.30% 3.25%

75 Day ISA – Issue 2

RATES FOR 75 DAY ISA – ISSUE 2, EFFECTIVE 17 FEBRUARY 2012

  Tax-free p.a./AER Bonus rate
£50,000+ 2.70% 1.70%
£25,000 - £49,999 2.60% 1.60%
£1,000 - £24,999 2.50% 1.50%
£1 - £999 0.25% n/a

Rate includes a bonus of 1.50% - 1.70% fixed until 30 September 2013

About Nationwide Building Society
Nationwide is the world's largest building society as well as one of the largest savings providers and a top-three provider of mortgages in the UK. It is also a major provider of current accounts, credit cards, ISAs and personal loans. Nationwide has around 15 million members.

Since the credit crunch began in 2007, Nationwide has remained profitable against a very difficult economic environment. In the half year ending September 2011 Nationwide made a strong underlying profit of £172 million – up 17% from the previous year. Its strong financial performance and prudent business model means that Nationwide is included in Global Finance magazine's Top 50 Safest Banks in the World.

Nationwide has around 700 branches and customers can manage their finances in branch, on the telephone, internet and post. The Society has around 16,000 employees. Nationwide's head office is in Swindon with administration centres based in Northampton, Bournemouth and Dunfermline. The Society also has a number of call centres across the UK.

Please note: If you are a customer looking for information on our products and services, please visit the main website.