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Why choose Fixed Rate ISA?

Deposit your money for a fixed amount of time with this online account. The longer the term, the higher the interest rate.

  • Interest rate: Up to 2.00% AER/tax-free (fixed)
  • Manage your money: online and in-branch
  • Deposit: save up to the maximum ISA allowance for the year (£20,000 for 2018/2019)
  • Access: if you want your money before the term ends, a charge will apply

A cash ISA allows UK residents aged 16 or over to save up to their annual ISA allowance tax-free with one provider each tax year. The allowance is £20,000 for 2018/2019. With other savings accounts, you may have to pay tax on the interest you earn, depending on your Personal Savings Allowance. The interest on a cash ISA is tax-free, so all the interest you earn, you keep.

Account details

Explore the key features and benefits of this account in our Summary Box before moving on to start your application.

Summary Box

Account name

Fixed Rate ISA

What is the interest rate?

You can find the details of our available interest rates in the table below.

Term Monthly Interest Annual Interest
  AER tax-free (fixed) AER tax-free (fixed)
1 year Fixed Rate ISA 0.90% 0.90% 0.90% 0.90%
2 year Fixed Rate ISA 1.00% 1.00% 1.00% 1.00%
3 year Fixed Rate ISA 1.25% 1.24% 1.25% 1.25%
5 year Fixed Rate ISA 2.00% 1.98% 2.00% 2.00%

Interest is calculated daily.

If you choose for interest to be paid annually:

Interest is paid at the end of the day before each anniversary of the account opening, at the end of the fixed term and on the date the account is closed. You can choose to have interest paid to you by having it added to your account, or by asking us to pay it into a different Nationwide current or savings account (as long as it is possible to make interest payments into that account) or a current account with another building society or bank.

If you choose for interest to be paid monthly:

Interest is paid at the end of each month, at the end of the fixed term and on the date the account is closed. The interest must be paid into a different Nationwide current or savings account (as long as it is possible to make interest payments into that account) or a current account with another building society or bank.

If you open your account towards the end of the month your first interest payment may not be paid until the following month. The final interest payment, when the account matures, is added to the Fixed Rate ISA.

Can Nationwide change the interest rate?

No, the interest rate on this account is fixed for the term of the ISA and cannot be changed.

What would the estimated balance be at the end of the fixed term based on a £1,000 deposit?

Annual

Term Interest Rate Balance at end of term
AER Tax-free (fixed)
1 year Fixed Rate ISA 0.90% 0.90% £1,009.00
2 year Fixed Rate ISA 1.00% 1.00% £1,020.10
3 year Fixed Rate ISA 1.25% 1.25% £1,037.97
5 year Fixed Rate ISA 2.00% 2.00% £1,104.08

The table above shows the balance on a deposit of £1,000 at the end of the fixed term with the fixed rate shown where interest is paid annually into the account.

Monthly

Term Interest Rate Balance at end of term Total monthly interest payable
AER Tax-free (fixed)
1 Year Fixed Rate ISA 0.90% 0.90% £1,000.75 £9.00
2 Year Fixed Rate ISA 1.00% 1.00% £1,000.83 £20.00
3 Year Fixed Rate ISA 1.25% 1.24% £1,001.03 £37.20
5 Year Fixed Rate ISA 2.00% 1.98% £1,001.65 £99.00

The table above shows the balance on a deposit of £1,000 for the fixed term with the fixed rate shown where interest is paid monthly into another account. Only the final months interest payment is shown as being added to the account in the 'Balance at the end of the term' column, as per the Key Product Information. We’ve also shown you how much interest would be payable over the life of the product if interest is paid monthly into another account in the “Total monthly interest payable” column – this includes interest for the final month which would be added to your account.

The estimated balances are for illustration only and assume that:

  • the Fixed Rate ISA is not closed before the end of the fixed term.

How do I open and manage my account?

To open this account:

  • you must be aged 16 or over
  • you can open this account with a minimum of £1 up to a maximum of the annual ISA allowance (currently £20,000 for tax year 2018/19)
  • you can also transfer existing ISA funds into the account.

You must:

  • not have paid in more than the annual ISA allowance in total to a cash ISA, a stock and shares ISA, an innovative finance ISA and a Lifetime ISA in this tax year
  • not have paid in to a cash ISA with another ISA manager in this tax year (unless you are transferring the money paid in to the other cash ISA to this one)
  • be resident in the UK for tax purposes or, if not so resident, either perform duties which, by virtue of Section 28 of Income Tax (Earnings & Pensions) Act 2003 (Crown employees serving overseas), are treated as being performed in the UK, or you must be married to, or in a civil partnership with, a person who performs such duties.
  • Please note: This is a lump sum account so you can’t add more money to the account once it has been opened.

    You can open this account with one lump sum:

    • using the 'Start application' button below this Summary Box
    • via the Internet Bank or Banking app (if you're registered for internet banking)
    • in branch
    • if you already have an ISA with us or another ISA manager, you can transfer your existing ISA funds to us in branch, via an online application form on nationwide.co.uk/isas.

    You can manage your account:

    • via the Internet Bank or Banking app (if you're registered for internet banking)
    • in branch
    • by post (maturity instructions only).

    It’s easy to move your savings between your existing Nationwide savings accounts or to open a new savings account with us. Simply go to nationwide.co.uk, use our Internet Bank, Banking app or visit one of our branches.

Can I withdraw money?

Yes, but this account doesn’t allow part withdrawals. You can close the account and withdraw the whole of the balance during the fixed term, subject to payment of an early access charge.

Once the account is open, there is a 14 day cancellation period where you will be able to cancel your Fixed Rate ISA. After this period if you do close the account early the early access charge will apply. The amount of the early access charge will depend on the length of the fixed term and will be based on a number of days’ interest at the rate applicable to the Fixed Rate ISA as detailed in the table below.

Term Early Access Charge
1 year Fixed Rate ISA 90 days interest
2 year Fixed Rate ISA 180 days interest
3 year Fixed Rate ISA 270 days interest
5 year Fixed Rate ISA 365 days interest

If there is insufficient earned interest to cover the early access charge then the difference will be taken from the money in the account. The money in the account, together with any interest earned and minus the early access charge, will be paid to you on closure of the account.

At the end of the term, your Fixed Rate ISA will mature into a Fixed Term ISA Maturity account, giving you instant access to your money. We'll contact you before your ISA matures with more information.

Additional information

Interest is calculated on each whole pound in the account. We’ll send you a certificate once your account is opened outlining your account balance and interest rate.

Interest rate definitions explained:

  • AER stands for Annual Equivalent Rate and illustrates what the interest rate would be if interest was paid and compounded once each year
  • Tax-free is the contractual rate of interest payable where interest is exempt from income tax.

The tax information provided is based on our understanding of current law and HM Revenue & Customs practice, both of which may change.

The interest rates and information in this summary box are effective from 1 May 2018.

This Summary Box sets out the key features of the savings account. For full details, please read the account terms and conditions.

Before you apply, please make sure you read the Summary Box and Terms and Conditions in full and print or save a copy for reference.

Other important information

Piggy bank hiding under a mat

Help with your savings

Our support pages have information on how to manage your account and view interest rates.

Savings and cash ISA support