Nationwide Building Society is set to reward customers who have held its One Year Fixed Rate ISA and 2 Year Fixed Rate ISA accounts, which are nearing their maturity.
Launched in March 2024, the fixed-rate accounts offered an Annual Equivalent Rate (AER) of 4.50% for the One Year Fixed Rate ISA and 4.20% for the 2 Year Fixed Rate ISA, both offering attractive returns for savers willing to lock away their money for a fixed term.
For those who deposited the maximum £20,000 into these ISAs, they can expect a return of £900 in interest by the time the account matures, equating to roughly £75 per month. These accounts were designed for savers with lump sums who are comfortable locking in their money for the fixed term, as well as for those seeking a stable interest rate.
However, the accounts are not suitable for individuals who may require instant access to their savings or who wish to make regular deposits.
Nationwide’s fixed-rate cash ISAs offer a valuable benefit: the interest earned is tax-free, unlike other savings accounts where you may need to pay tax on the interest depending on your Personal Savings Allowance. The annual ISA allowance for the 2024/25 tax year is £20,000, meaning customers can save up to this amount in a cash ISA without having to pay tax on the interest earned.
Nationwide’s Fixed Rate ISAs are available to UK residents aged 18 or over, although individuals aged 16 or 17 who held an ISA before 6 April 2024 can also open one, provided they meet the eligibility criteria.
Customers should note that if they close their Fixed Rate ISA before the end of its fixed term, they will not receive the expected rewards or interest. Additionally, any funds deposited into a cash ISA must belong to the individual holding the account, and the money cannot be held in trust for someone else.
Customers who are eligible for this reward will see the interest paid into their accounts as the ISAs mature, providing an easy and tax-efficient way to grow savings.
Nationwide Building Society continues to be a popular choice for savers looking for competitive interest rates and the stability of a trusted financial institution.
