Over-50s cash ISA launched by Nationwide

Nationwide Building Society has announced details of its new three year Fixed Rate ISA (FRISA) Bond exclusively available for savers aged 50 or over on or before 5 April 2010.

From Tuesday 6 October 2009, Nationwide's FRISA Bond range will also include:

Three year 50+ FRISA Bond (annual interest) paying 4.00% gross p.a./AER

The interest rates for Nationwide's Instant Access ISA, Members' ISA Bond and all other FRISA Bonds remain unchanged and continue to be available for all savers aged 16 or over.

From 6 October 2009, savers aged 50 or over on or before 5 April 2010 will be able to use their full new annual ISA allowance of £10,200. This new limit is an increase of £3,000 and means that up to £5,100 can be saved in a cash ISA and the remaining balance in a stocks and shares ISA. Alternatively, the full £10,200 can be invested in a stocks and shares ISA, or the balancing amount up to £10,200 if a partial cash ISA subscription has been made.

Eligible Nationwide customers can top-up their Instant Access ISA and Members' ISA Bond, while eligible customers with a FRISA Bond or a Tracker ISA can open additional accounts, up to the £5,100 cash ISA annual limit. All savers over the age of 16 with a Members' ISA Bond will also be able to make an unlimited number of deposits up to the annual cash ISA limit from 6 October 2009.

Customers who have not invested with another ISA provider this tax year can invest their full allowance with Nationwide and/or transfer their existing ISA balances to Nationwide.

Eligible customers who have invested in a Legal & General Capital Guaranteed Multi-Index Equity Bond (GEB) ISA this tax year can invest an additional £1,500 in a new GEB ISA to take advantage of the full new allowance. For those customers who wish to take advantage of potential stock market growth with their increased ISA allowance, Nationwide offers a wide range of investment funds online for customers to self-invest or with advice in branch.

Andy Hutchinson, Nationwide's head of savings, said: "The launch of Nationwide's new 50+ Fixed Rate ISA Bond is great news for new and existing customers who are looking to take advantage of the new increased annual ISA allowance. Eligible savers should also remember that they can move an existing ISA balance from a different provider to any one of the cash ISAs available through Nationwide. No matter what kind of ISA you have, eligible customers can take full advantage of the new allowance, so long as they have not already invested with another ISA provider this tax year.

"As the UK's second largest savings provider, we would like to see as many people as possible take advantage of their annual ISA allowance. This includes those under 50, as our full ISA range continues to be available to them and an ISA can provide good returns."