03 April 2012
To coincide with the start of the new tax year, Nationwide will, on Saturday 7 April, be launching a brand new branch-based ISA paying 4.25% AER* tax-free. As well as encouraging savers to make the most of the increased tax-free cash ISA allowance of £5,640, the new account is designed to reward customers who currently use Nationwide’s FlexAccount as their main current account1, or who open a new FlexAccount and use Nationwide’s Account Transfer Service. This reinforces Nationwide’s strategy to reward customers who have a deeper relationship with the Society2.
Available to new subscriptions only, Flexclusive ISA is a variable rate, instant access account that guarantees to pay a core rate of at least 1.50% above the Bank of England Base Rate until 1 January 2014. At Base Rate’s current level, Flexclusive ISA would pay a core rate of 2.00% AER* tax-free. In addition, the account will offer an introductory bonus of 2.25% fixed until 31 October 2013 bringing the overall rate, paid on balances of £1 and over, to 4.25% AER* tax-free.
Flexclusive ISA will appeal to those savers who want to use their 2012/13 tax-free cash ISA allowance straight away but at the same time want immediate access to their money. The minimum opening balance for Flexclusive ISA is £1, with a maximum deposit of £5,640 for the current tax year.
Richard Marriott, Nationwide’s head of savings, said: “Flexclusive ISA will increase the attractiveness of our current account by rewarding FlexAccount holders with a market-leading cash ISA rate.
“This new, market-leading ISA account is the latest in a series of benefits for those that use Nationwide’s FlexAccount as their main current account. As a mutual, the Society is continually looking for ways to reward loyal customers. Those who use their Nationwide current account as their main account already benefit from free European travel insurance, a competitive personal loan rate, a market-leading credit card and access to exclusive mortgage offers. Adding the Flexclusive ISA to that list of benefits will further enhance the attractiveness of the FlexAccount and provide another example of how Nationwide is on your side.”
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 To qualify as a main FlexAccount holder, you have to hold a FlexAccount with a Visa debit card (not a cash card+) and:
- Pay in £750 or more each month (excluding internal transfers) for the last 3 months, or:
- Agree to complete an Account Transfer from an account (non Nationwide) using our Account Transfer Service or have done so in the past four months.
To continue to be eligible for Flexclusive ISA, customers must meet all of the criteria above, as well as continuing to deposit at least £750 or more each month into the FlexAccount.
2 Rewarding loyalty
Flexclusive ISA is a further addition to the exclusive benefits that main FlexAccount customers are already eligible for. Other current account offers available to customers using their FlexAccount as their main current account include:
- One of the lowest personal loan rates on the market – currently 6.3% APR Representative for main FlexAccount customers for loans of £7,500 to £14,999 for up to five years.
- The Select Credit Card – offering a market-leading 18-month purchase offer and a competitive 17-month balance transfer offer.
- 135 days of free cover with Nationwide home insurance when new buildings and contents cover is purchased together.
- Exclusive mortgage offers.
- Free European multi-trip travel cover.
RATES FOR FLEXCLUSIVE ISA, EFFECTIVE 7 APRIL 2012
||Overall rate including bonus (AER* tax-free)
||Core rate (AER* tax-free variable)
||Bonus rate (AER* tax-free)
£1 - £5,640
**Rate guaranteed to pay at least 1.50% above Base Rate until 1 January 2014. Any changes will be made within one month of a Bank of England Base Rate announcement.
***Bonus rate fixed until 31 October 2013.
Availability: in branch
Withdrawals: without notice or loss of interest
Deposits: unlimited, up to annual cash ISA allowance
Min. opening balance: £1
Min. operating balance: £1
Max. operating balance: £5,640
About Nationwide Building Society
Nationwide is the world's largest building society as well as one of the largest
providers and a top-three provider of
mortgages in the UK. It is also a major provider of
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.