Nationwide Increases Cash ISA Rates

13 March 2012

From 14 March 2012, Nationwide will increase rates on its 75 Day ISA and Smart Junior ISA by up to 0.25%.

75 Day ISA – Issue 2

The second issue of the 75 Day ISA account will see rates increased by up to 0.25% for both new and existing customers. Until 30 September 2013, 75 Day ISA – Issue 2 will include a fixed introductory bonus of between 1.75% and 1.85% tax-free (depending on the balance of the account). This means 75 Day ISA will pay a return of between 2.75% and 2.85% AER* tax-free variable including the introductory bonuses for balances of £1,000 or more. 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tax year, access is available without loss of interest provided 75 days advance notice is given on the amount to be withdrawn.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 cash ISA allowance
Min. opening balance £1,000
Min. operating balance £1

Smart Junior ISA

The Smart Junior ISA will see the rate increased by 0.25% and the bonus period extended for both new and existing customers. Until 31 January 2014, Smart Junior ISA will include a fixed introductory bonus of 1.15% tax-free for balances of £1 or more. This means the Smart Junior ISA will now pay 3.25% AER* tax-free variable including the introductory bonus.

SMART JUNIOR ISA

AER tax-free variable rate (including bonus) AER tax-free variable rate (excluding bonus) Bonus rate
£1+ 3.25% 2.10% 1.15% introductory fixed bonus until 31 January 2014
Smart Junior ISA
Availability In branch, by post or online
Eligibility Available to UK resident children under 16 who have never been issued with a Child Trust Fund voucher
Withdrawals No withdrawals allowed before the child’s 18th birthday and then only the child can access the money
Deposits Unlimited, up to annual Junior ISA allowance of £3,600 for the tax year 2011/12
Min. opening balance £1
Min. operating balance £1
Max. balance Subject to annual Junior ISA allowance
Account opening The account must be opened by a parent or legal guardian over the age of 16 on behalf of a child under the age of 16 years.
Number of accounts The child is the account holder and can only hold one cash Smart Junior ISA at any one time.
Interest Interest is calculated and credited to the account annually on 31 October

Richard Marriott, Nationwide’s head of savings, said: "Nobody likes paying more tax than they have to, but that’s exactly what savers who don’t fully utilise their cash ISA allowance are doing. The end of the current tax year is fast approaching, so savers need to act fast to take advantage of this year’s tax-free allowance.

"The 75 Day ISA offers a competitive rate for those customers looking to manage their money in branch. Furthermore, the increase will benefit both new and existing savers.

"Nationwide believes in the importance of fostering a savings culture in the UK. The best way to achieve this is to encourage people to start saving when they are young.

"The Nationwide Junior ISA doesn't require parents to hold another account with the Society to qualify for this top rate."

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