Nationwide launches new Cash ISAs

15 March 2013

From Wednesday 20 March, Nationwide is launching new issues of its Fixed Rate Cash ISAs with increased rates.

Fixed Rate ISAs

The rates for annual interest are:

  • Two-year Fixed Rate ISA pays 2.50% AER* tax-free
  • 30-month Fixed Rate ISA pays 2.80% AER* tax-free (maturing customers only)
  • Four-year Fixed Rate ISA pays 3.00% AER* tax-free (maturing customers only)

The rate on the one-year Fixed Rate ISA remains the same.

Monthly interest options are available on all Nationwide fixed rate ISAs. Savers can invest upwards of £1 into the cash ISAs, which accept transfers of existing cash ISA balances.

Previous issues of two-year Fixed Rate ISA, 30-month Fixed Rate ISA and four-year Fixed Rate ISA will be withdrawn from sale on Tuesday 19 March, 2013.

Richard Marriott, Nationwide head of savings, said: "Basic rate taxpayers have to pay 20 per cent tax on the interest they earn on their savings in a standard savings account, while higher rate taxpayers pay 40 per cent tax. Nobody likes paying more tax than they need to, but if savers don't utilise their ISA allowance then that is what they are doing.

"Our new Fixed Rate Cash ISAs offer competitive rates. If customers don't need instant access to their money then our new ISAs are one to consider. All the Society's fixed rate cash ISAs accept transfers in, meaning savers can earn a competitive rate of interest on both this and previous years ISA balances. Unlike other providers, we pay interest from the day we receive the ISA transfer application, so savers don't lose out on valuable interest whilst the transfer takes place1."

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.

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

Parity on Fixed Rate Bonds and Fixed Rate ISAs

As part of the Nationwide Savings Promises, where the Society has a Fixed Rate ISA for the same term as a Fixed Rate Bond, the ISA rates are guaranteed to match or beat the equivalent bond rate.

Further details on all Nationwide's Savings Promises can be found at:

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

Opening accounts:

  • Fixed Rate ISAs are available from Nationwide branches.
  Early closure
Term of bond Four years Three years Two years One year or less
Loss of interest 320 days 270 days 180 days 90 days

If the term includes part of a year, the early access charge will be calculated based on the next whole year e.g. 30-month term equals the three-year early access charge.

Interest Rates: Fixed Rate ISAs - correct on Wednesday 20 March 2013

Two-year FRISA (annual) AER (%) Tax-Free (%)
£1 + 2.50 2.50
Two-year FRISA (monthly) AER (%) Tax-Free (%)
£1 + 2.48 2.45

30-month FRISA (annual) AER (%) Tax-Free (%)
£1 + 2.80 2.80
30-month FRISA (monthly) AER (%) Tax-Free (%)
£1 + 2.78 2.75

Four-year FRISA (annual) AER (%) Tax-Free (%)
£1 + 3.00 3.00
Four-year FRISA (monthly) AER (%) Tax-Free (%)
£1 + 2.99 2.95

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.

Customers can manage their finances in a 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.