Champion ISA moves up to 2.80%

Nationwide Building Society will, on 1 April 2010, increase the interest rate of Champion ISA to up to 2.80% gross p.a./AER variable.  This may be of interest to those who have not yet fully used this year's cash ISA allowance, as well as to those looking to use next year's universal increased allowance. 

A key element of Champion ISA is that its core interest rate tracks those of the top five branch-based cash ISAs from a basket of eight competitors and provides the average of the five.   Until 30 June 2011, a fixed introductory bonus of 1.35% gross p.a. for balances of £1,000 or more is then added on top of the core rate.  So when there is movement in the interest rates of the basket of eight competitors' branch-based cash ISAs, Champion ISA's interest rate will change accordingly, ensuring a top rate month after month.

Even without the fixed bonus, Champion ISA is competitive because other providers' introductory bonuses are included when calculating Champion ISA's core interest rate.  Nationwide will write to customers to remind them when their fixed bonus is due to end.

All other Nationwide cash ISAs continue to be available, including a market leading four year Fixed Rate ISA paying 4.25% gross p.a./AER (annual interest).

Andy Hutchinson, Nationwide's head of savings, said: "One of the key elements of Champion ISA is that 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.  This is demonstrated by the fact that Champion ISA's interest rate will increase on 1 April 2010.

"With less than a week to go before the end of the tax year, I encourage everyone to consider utilising this year's full annual ISA allowance before it is lost forever.  After all, there aren't many opportunities in life to ‘beat the tax system'.  We can help with your financial planning and, as well as a comprehensive range of cash ISAs, we also offer a range of stocks and shares ISAs to allow people to build a diverse portfolio of savings and investments."