Nationwide launches new cash ISA range
Nationwide Building Society has launched its new Champion ISA paying up to 2.50% gross p.a./AER variable and e-ISA paying 2.75% gross p.a./AER variable, as well as the launch of a number of new Fixed Rate ISAs. This includes a market leading three year Fixed Rate ISA paying 4.40% gross p.a./AER for the annual interest option.
The new ISAs will be of interest to those who have not yet fully used their annual cash ISA allowance and to those wishing to switch their existing cash ISA balances to Nationwide for a better deal.
Champion ISA
Nationwide's new Champion ISA follows in the footsteps of the successful Champion Saver. Available to both new and existing customers - including new subscriptions and transfers of existing cash ISA balances - from any Nationwide branch, Champion ISA's core rate is the average rate offered by the top five paying branch-based cash ISAs from a basket of eight key competitors. Until 30 June 2011, Champion ISA will also include a fixed introductory bonus of 1.35% gross p.a. for balances of £1,000 or more. This means Champion ISA pays a return of up to 2.50% gross p.a./AER variable including the introductory bonus. Furthermore, savers will also have the flexibility of one penalty-free withdrawal in a tax year without notice.
Even without the introductory bonus, Champion ISA is competitive because other providers' introductory bonuses are included when calculating Champion ISA's core interest rate. Champion ISA's bonus is then added on top to offer a rate that is currently 2.00% higher than the Bank of England Base Rate with the bonus and 0.65% higher without.
Moneyfacts - an independent organisation - will be used by Nationwide every month to check the basket of competitors' top paying branch-based cash ISAs, meaning customers don't have to. The Society will then update Champion ISA's interest rate accordingly.
Michelle Slade, Moneyfacts spokesperson, said: "With today's hectic lifestyles, shopping around for the best rates can be difficult. This is why the Champion ISA could help savers make the most of their money, as it automatically tracks the interest rates from a basket of eight key competitors. As experts in financial products, I'm pleased to say that Moneyfacts has been chosen by Nationwide to independently verify Champion ISA's interest rate."
e-ISA
Available online to existing Nationwide customers with a card-based account, e-ISA pays 2.75% gross p.a./AER variable including a fixed introductory bonus of 1.00% gross p.a. until 30 June 2011. Accessible via Nationwide's Internet Bank, e-ISA may be well suited to those who prefer to manage their savings accounts online. The competitive rate of e-ISA is made even more attractive by the fact that the account allows unlimited withdrawals and deposits (subject to ISA allowance), which means greater flexibility for customers.
Like with Champion ISA, e-ISA allows new subscriptions and transfers of existing cash ISA balances.
Fixed Rate ISA
The new rates for annual interest options will include:
One year Fixed Rate ISA paying 2.75% gross p.a./AER for balances of £1 or more.
A market leading three year Fixed Rate ISA paying 4.40% gross p.a./AER for balances of £1 or more.
The previous six month, two year, three year for over 50s and five year Fixed Rate ISAs were withdrawn at the close of business on 23 February 2010. The two year Tracker ISA continues to be available.
Andy Hutchinson, Nationwide's head of savings, said: "When we launched our first ‘Champion' account in August 2009, we received feedback from customers asking for an ISA version of the account. This is why I am delighted to announce the launch of the new Champion ISA, which follows the same concept as Champion Saver, but with branch-based cash ISAs. With Champion ISA, savers are safe in the knowledge that they will not have to chase competitive rates round the High Street, as Nationwide will do that for them.
"For those who prefer to manage their accounts online, we have also launched the instant access online e-ISA, paying a competitive interest rate that is currently over five times the Bank of England Base Rate. At the same time, we have refreshed our range of Fixed Rate ISAs, which includes a market leading three year account. So with a range of fixed rate, instant access, online and notice account cash ISAs available, Nationwide's cash ISAs range is as extensive as ever, suiting a wide variety of needs."
Customers with a Members' ISA Bond will now also be able to make three penalty-free withdrawals each tax year. Further withdrawals are subject to 30 days' notice or loss of interest.
Nationwide will write to customers to remind them when their introductory bonus is due to end.