25 May 2018
Nationwide Building Society is today (25 May 2018) launching Loyalty ISA, an ISA version of its popular Loyalty Saver account.
Like Loyalty Saver, Loyalty ISA will reward members based on the length of their membership, with those who have been a member for 15 years or more receiving a rate of 1.00% AER/tax-free (variable) on balances of £1 or more.
Loyalty ISA can be opened and managed via Nationwide’s Internet Bank, Mobile Banking app or in branch.
Since it was first launched in October 2012, more than 1.6m members now have a Loyalty Saver account, making it one of our most popular savings products ever. The majority (80%) have been members for 15 years or more and during that time they have benefitted from a rate that on average has paid 0.78% more than the instant access non-ISA market rate1 equivalent to an extra £171 of annual interest per member based on the current average balance of £22,000.
Tom Riley, Director of Savings at Nationwide, commented: “Consumers often feel their loyalty is taken for granted and that they get little reward for years of valuable custom. As a mutual our members are at the heart of what we do and rewarding their loyalty is an important part of our ethos.
“Loyalty Saver has been our most popular ever loyalty account and the significant majority of members who hold the account are benefitting from earning one of the highest easy access rates on the market. The new Loyalty ISA will mean our members can now benefit from an account that rewards their loyalty while saving in an ISA.”
Notes to Editors:
1 Source CACI
AER stands for Annual Equivalent Rate which 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.