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07 February 2013
From Friday 8 February, Nationwide is launching two new fixed rate cash ISAs and launching new issues of two-year fixed rate cash ISA and Web ISA paying increased rates.
The rates for annual interest are:
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.
The new issue of Web ISA will pay an increased rate of between 2.00% and 2.25% AER* tax-free (variable) depending on the amount invested. The rate includes a fixed introductory bonus rate of between 1.50% and 1.75% until 31 August 2014.
The cash ISA is available online to Nationwide customers with a card-based savings or current account (excluding Regular Savings) and who are registered for Internet Banking. Customers can apply for a Card account prior to opening the Web ISA.
The account requires a minimum deposit of £1,000 and allows unlimited withdrawals and deposits (subject to annual cash ISA allowances), providing flexibility for customers.
Web ISA allows new subscriptions and transfers of existing cash ISA balances held with Nationwide or other providers.
Six-month Fixed Rate ISA and Web ISA (Issue 1) will be withdrawn from sale at close of business on Thursday 7 February. One-year Fixed Rate ISA remains unchanged.
Richard Marriott, Nationwide head of savings, said: "The end of the current tax-year is fast approaching and savers need to act quickly if they want to use their annual tax-free cash ISA allowance before they lose it.
"Nationwide's new fixed-rate ISAs offer competitive rates and are certainly worthy of consideration if savers don't need instant access to their money. Alternatively, if savers do need instant access then Web ISA pays a highly competitive rate of up to 2.25% AER*/ tax-free (variable).
"Savers who transfer their existing cash ISA balances to Nationwide will benefit from one of the Society's Savings Promises where you can earn interest on your cash ISA as soon as we receive your transfer application, provided that your funds are free to move and not subject to any notice period.
"Since we made this promise two years ago, the Society has paid its cash ISA savers an extra £2.5 million of interest - further proof to savers that we are 'On Your Side'."
*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.
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 gross rate and AER are guaranteed to match or beat the equivalent bond rate.
Further details on all Nationwide's Savings Promises can be found at: http://www.nationwide.co.uk/savings/savingspromises/default.htm
If the term includes part of a year, the early access charge will be calculated based on the next whole year e.g. 14-month term = the two-year early access charge.
Interest Rates: Fixed Rate ISAs - correct on Friday 8 February 2013
In order to apply for a Web ISA, a customer must already hold a Nationwide FlexAccount, FlexDirect, Invest Direct, CashBuilder Card or Smart Card. Customers can apply for a CashBuilder Card account and Web ISA at the same time.
RATES FOR WEB ISA (ISSUE 2), EFFECTIVE FROM 8 FEBRUARY 2013
Balances of £1,000 - £9,999 include a 1.50% fixed introductory bonus rate until 31 August 2014. Balances of £10,000+ earn a 1.75% fixed introductory bonus rate until 31 August 2014. After this date it reverts to a variable rate, currently 0.50% 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.
Nationwide is the world's largest building society as well as the second largest savings provider 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.