Nationwide launches 4% savings interest rate

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The financial institution confirmed it will be introducing new one to two-year fixed rate ISAs onto the market. According to Nationwide Building Society, one of these accounts will be offering a four percent rate return on savings.

The building society’s One Year Fixed Rate ISA has an interest rate of 3.75 percent AER/tax-free.

Conversely, Nationwide’s Two Year Fixed Rate ISA pays avers a “competitive” four percent AER/tax-free.

Each of the building society’s Fixed Rate ISA products accepts transfers into the account from savers.

These accounts from Nationwide are available to both new and existing customers of the building society.

Customers with Nationwide Building Society will be able to open a Fixed Rate ISA for as little as £1.

It is possible to do this by using the financial institution’s digital channels, such as Online Banking or Nationwide’s website.

Alternatively, people interested in opening an account can do so by visiting one of the building society’s branches.

Outside of Fixed Rate options, Nationwide has a variety of other ISA alternatives available to customers.

These include the building society’s One Year Triple Access Online ISA which pays a rate of 2.50 percent AER/tax free.

Tom Riley, director of retail products at Nationwide Building Society, called on savers to make the most out of their ISA allowance before the allowance deadline this week.

He explained: “ISAs are an important way to save for many people as the interest earned doesn’t count towards the Personal Savings Allowance. 

“With the end of the tax-year approaching, we’re launching these new fixed rate ISAs to ensure savers have a range of options to be able to use some or all of this year’s ISA allowance.”

Every tax year, savers have a set amount or allowance they can place away into ISAs without being levied with a tax charge.

The tax year runs from April 6 to the following April 5 which means the ISA allowance deadline is only a week away.

ISA account holders can save £20,000 in one type of account or split the allowance across some or all of the other types, such as stocks and shares or cash ISAs.

It should be noted that savers can only pay £4,000 into their Lifetime ISA during one tax year.

This latest product offering from Nationwide Building Society comes amid recent interest rate hikes from the Bank of England.

The central bank has opted to hike the base rate 11 consecutive times in a row within the last 12 months in a bid to rein in inflation.

As it stands, the base rate is at 4.25 percent, however, the latest CPI inflation rate rose to 10.4 percent for the 12 months to February 2022.

In light of this, experts are not ruling out further rate increases which could be partially passed down to the savings products from building societies, such as Nationwide.

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