Nationwide launches new cash ISAs
Nationwide is launching two new fixed rate cash ISAs and launching new issues of two-year fixed rate cash ISA and Web ISA paying increased rates.
Fixed Rate ISAs
The rates for annual interest are:
Two-year Fixed Rate ISA pays 2.35% AER tax-free
30-month Fixed Rate ISA pays 2.55% AER tax-free
Four-year Fixed Rate ISA pays 2.70% AER tax-free
The rate on the one-year Fixed Rate ISA remains the same.
Monthly interest options are available on all Nationwide fixed rate ISAs. Savers can invest upwards of £1 into the cash ISAs, which accept transfers of existing cash ISA balances.
Web ISA (ISSUE 2)
The new issue of Web ISA will pay an increased rate of between 2.00% and 2.25% AER tax-free (variable) depending on the amount invested. The rate includes a fixed introductory bonus rate of between 1.50% and 1.75% until 31 August 2014.
The cash ISA is available online to Nationwide customers with a card-based savings or current account (excluding Regular Savings) and who are registered for Internet Banking. Customers can apply for a Card account prior to opening the Web ISA.
The account requires a minimum deposit of £1,000 and allows unlimited withdrawals and deposits (subject to annual cash ISA allowances), providing flexibility for customers.
Web ISA allows new subscriptions and transfers of existing cash ISA balances held with Nationwide or other providers.
Six-month Fixed Rate ISA and Web ISA (Issue 1) will be withdrawn from sale at close of business on Thursday 7 February. One-year Fixed Rate ISA remains unchanged.
Richard Marriott, Nationwide head of savings, said: "The end of the current tax-year is fast approaching and savers need to act quickly if they want to use their annual tax-free cash ISA allowance before they lose it.
"Nationwide's new fixed-rate ISAs offer competitive rates and are certainly worthy of consideration if savers don't need instant access to their money. Alternatively, if savers do need instant access then Web ISA pays a highly competitive rate of up to 2.25% AER/ tax-free (variable).
"Savers who transfer their existing cash ISA balances to Nationwide will benefit from one of the Society's Savings Promises where you can earn interest on your cash ISA as soon as we receive your transfer application, provided that your funds are free to move and not subject to any notice period.
"Since we made this promise two years ago, the Society has paid its cash ISA savers an extra £2.5 million of interest - further proof to savers that we are ‘On Your Side'."