Nationwide has launched two new savings products and enhanced rates on four of its fixed income ISAs.
The new One Year Single Access ISA and One Year Single Access Saver both go on sale from today (6 March), offering an interest rate of 4%.
A Single Access ISA does what it says on the tin – customers can only make one withdrawal before the interest rate drops. If you receive more than one payment, you will be charged an interest rate of 1.05%.
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Nationwide is also increasing the interest rate on four fixed rate ISAs from 6 March: its 1 Year, 2 Year, 3 Year and 5 Year Guaranteed ISAs. The new Year 1, 2 and 3 ISA rates are 4.05% while the 5 Year now has an interest rate of 4.25%.
Richard Stocker, head of national savings at Nationwide, said: “We are delighted to be increasing rates across our ISAs and our immediate savings product, providing members with long-term value and significant benefits.”
How do savings accounts compare?
None of these six National savings accounts offer the best savings rates on the market, according to our research of data available at Moneyfactscompare.co.uk.
However, they are still fairly competitive, with some offering better rates than those offered by major banks and building societies.
It is also important to consider other factors when you decide to open a savings account in a bank or building society. For example, if you want to bank with a service provider that has a branch near you, Nationwide has committed to keeping the remaining branches open until at least 2030.
Our figures are based on someone depositing £10,000 into one of our savings accounts, and all the accounts we’ve mentioned below are protected by the FSCS.
How Nationwide 1 Year Single Access ISA – 4% compares
Business 212, Plum and Moneybox all offer affordable cash ISAs with rates of 4.54%, 4.53% and 4.52% respectively.
Business 212 and Plum allow unlimited withdrawals while Moneybox allows you to withdraw three times a year before being penalized at a low rate.
Across leading banks and building societies, the Nationwide 1 Year Single Access ISA is at the top of the market.
Harpenden Building Society offers a Single Access Cash ISA at a competitive 4.06% while Aldermore’s Single Access Account comes in at a rate of 4.11%.
Nationwide 1 Year Single Deposit – 4% compared
Tembo Money and Chip both offer affordable savings accounts with better rates than Nationwide’s 1 Year Single Access Saver.
The fees for their products are 4.55% and 4.20%, respectively, and both allow unlimited withdrawals.
Across the major banks and building societies, Nationwide is near the top, with Yorkshire Building Society offering the Four Access eSaver at 4.05% and the Tesco Bank account with a savings rate of 4.06%.
Nationwide ISAs – 1, 2, 3 (4.05%) and 5 Years (4.25%) – compare
Four nationwide ISAs have increased interest rates all close to the market, and in some cases lead the big high street banks and building societies.
The 5-Year Fixed-Rate ISA is beaten only by Chetwood Bank which offers 4.26% on its 5-Year Fixed-Rate Cash ISA, but Nationwide’s rate is the best of the well-known high-street banks.
Why is Nationwide increasing its savings rates?
Banks and building societies often compete for customer business until the end of the financial year when ISA rewards run out.
In 2026/27 the last year under-65s can put up to £20,000 into a cash ISA, before the limit drops to £12,000 for cash ISAs, the end of this financial year is “set to be particularly competitive”, said Caitlyn Eastell, personal finance analyst at Moneyfacts.
The Iran conflict may also prompt lenders to adjust their rates again, as there are speculations that interest rates will decrease, as inflation may rise amid the conflict.
Eastell said: “Because of the fall in expectations of a [Bank of England] the lower the rate, the higher the rates may remain for longer and the providers may choose to offer more competitive deals. ”
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