Savings accounts explained

Why choose Nationwide?

Nationwide was founded by a group of people who wanted to save for the future and help each other build homes.
That hasn’t changed.

When you save with us, you become a Nationwide member. And we still reward our members for putting money aside with us.

Some things to consider when choosing a savings account

Is a cash ISA or another savings account best for you?

The main differences explained

Why a cash ISA is different to other savings accounts

ISA stands for Individual Savings Account. The main difference between a cash ISA and any other savings account is that it offers tax-free interest payments, so you could get more for your money. Also, you can only have one ‘active’ cash ISA every year – this means that you can’t open multiple ISAs in a single tax year, and benefit from the tax-free savings allowance in every one of these.

Know your Personal Savings Allowance

The Personal Savings Allowance (PSA) means that, depending on the income tax rate you pay, you could earn up to £1,000 in interest in a (non-ISA) account during a tax year without having to pay tax on your interest.

Understand the ISA allowance

There is a limit to how much money you can put into a cash ISA in each tax year, which is called the ‘ISA allowance’. The cash ISA allowance for the 2021/22 tax year is £20,000. Other (non-ISA) savings accounts allow you to save up to £5,000,000 every year.

Consider ISA flexibility

ISA flexibility allows you to take out money from your ISA account and replace that money within the same tax year without it counting towards to your annual ISA allowance.

How do you want to access your money?

Different types of accounts offer different ways to access your money

Instant-access accounts

You can pay in and take out money whenever you need.

Limited-access accounts

Often offering a better interest rate than an instant-access account. The difference is that you’ll be limited to a certain number of withdrawals in each account year to keep that interest rate.
If you go over the limit, your interest rate will drop to a lower level for the rest of the account year.

Fixed-term accounts

A way to save a lump sum for a fixed amount of time. Your interest rate is fixed, so it won’t go up or down. During the fixed term, it’s not possible to take out money without paying an early-access charge.

What are you saving for?

Your savings plans can affect the account you choose. Some accounts have been designed for a particular purpose – for example: saving for a child’s future, or saving for a first home.