Nationwide four year Fixed Rate ISA paying up to 4.25%

Nationwide Building Society has launched a new market leading four year Fixed Rate ISA paying 4.25% gross p.a./AER (annual interest).  This rate will be available for balances of £1 or more and will accept ISA transfers-in.

In addition, there will also be a number of other changes to Nationwide's Fixed Rate ISA and Fixed Rate Bond range:

Three year Fixed Rate ISA paying 4.15% gross p.a./AER (annual interest) for balances of £1 or more.  This will be available exclusively to existing customers whose current Fixed Rate ISAs are due to mature. 

Three year Fixed Rate Bond and e-Bond paying 4.15% gross p.a./AER (annual interest) for balances of £1 or more.

Monthly interest options are available for all Fixed Rate ISAs and Fixed Rate Bonds.

All Nationwide cash ISAs accept transfers-in, meaning that customers can switch their existing cash ISA balances to Nationwide for potentially a better deal.

The current three year Fixed Rate Bond and three year Fixed Rate ISA will be withdrawn from sale at the close of business on Thursday 25 March 2010.  The launch of the new four year Fixed Rate ISA means that customers continue to have a range of  opportunities to take out a cash ISA with a competitive guaranteed rate of return, which will meet their individual needs.  All other Nationwide cash ISAs, including Champion ISA paying up to 2.50% gross p.a./AER variable and e-ISA paying 2.75% gross p.a./AER variable, continue to be available.

Andy Hutchinson, Nationwide's head of savings, said: "The three year Fixed Rate ISA that was launched in February has been a great success not only for us, but also our customers who have been able to take advantage of a market leading rate.  Having reviewed the market place, the three year Fixed Rate ISA will be replaced by a competitive four year Fixed Rate ISA.  This will help us to ensure we can continue to manage the inflow of business prudently during the busy ‘ISA season', while at the same time offering our customers good deals on their savings.

"We also continue to offer a range of fixed rate, instant access, online and notice cash ISAs, meaning our accounts are able to suit a wide variety of needs."

For those customers who have already received a maturity mailing offering them the three year Fixed Rate ISA paying 4.40% gross p.a./AER (annual interest), Nationwide will honour that rate should they wish to reinvest their funds.  This also applies to transfer-in applications already received and where Nationwide is awaiting funds from the existing provider.