Nationwide revamps savings range
Nationwide Building Society is launching a number of new accounts to its savings portfolio and making changes to a number of its existing savings products. All launches and changes are designed to give savers the choice and flexibility to choose a product that best suits their needs.
75 Day Saver Issue 1
Available through any Nationwide branch to both new and existing Nationwide customers, 75 Day Saver is a variable rate, 75 day notice account that pays a return of between 2.50% and 2.70% gross p.a./AER. The rates paid depend on the balance of the account and apply to balances of over £1,000. 75 Day Saver includes an introductory bonus of between 1.50% and 1.70% (depending on the balance) that is fixed until 30 November 2012.
75 Day ISA Issue 1
Nationwide's 75 Day ISA follows in the footsteps of the 75 Day Saver. Available to both new and existing customers from any Nationwide branch, 75 Day ISA is a variable rate, 75 day notice account. Until 30 November 2012, 75 Day ISA will include a fixed introductory bonus of between 1.50% and 1.70% (depending on the balance of the account) AER/tax-free for balances of £1,000 or more. This means 75 Day ISA pays a return of between 2.50% and 2.70% AER/tax-free variable including the introductory bonuses. Furthermore, savers will also have the flexibility of one free withdrawal in a tax year without notice.
75 Day ISA accepts new subscriptions and transfers from existing Nationwide ISAs only. No transfers in are allowed.
Champion products
With the introduction of the 75 Day Saver and 75 Day ISA accounts, Nationwide will be making changes to both its branch-based Champion ISA and Champion Saver accounts. Any Champion ISA or Champion Saver account opened from 1 July 2011 will no longer include a fixed introductory bonus, meaning that customers who look for long term value have a range of bonus free products to choose from.
So, from the 1 July:
Champion Saver will pay a rate of 1.76% gross p.a./AER for balances over £1,000. This rate continues to be the average rate offered by the top five branch-based instant access, limited access and notice accounts from a basket of eight key competitors.
Champion ISA will pay a rate of 1.76% gross p.a./AER for balances over £1,000. This rate continues to be the average rate offered by the top five branch-based cash ISAs from a basket of eight key competitors. In addition, Nationwide is also guaranteeing that its Champion ISA interest rate will always match or beat its current Champion Saver interest rate, helping savers to get the most from their tax free savings.
Even without their respective fixed bonuses, Champion Saver and Champion ISA will continue to deliver good value because other providers' introductory bonuses are included when calculating Champion Saver's and Champion ISA's core interest rates.
Online ISA Issue 1
In addition to the launch of the 75 Day Saver and 75 Day ISA, Nationwide is also launching a new instant-access ISA, the Online ISA. Available online to Nationwide customers with a card-based account, the Online ISA pays a fixed rate of 2.75% AER/tax-free until 31 January 2013 for balances over £1,000. After 31 January 2013, the Online ISA rate will become 1.00% AER/tax-free variable. As well as having a competitive rate that will remain fixed for 18 months, the Online 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 Nationwide's Champion ISA, the Online ISA allows new subscriptions and transfers of existing cash ISA balances.
e-ISA
With the launch of Online ISA, Nationwide will be making a change to its existing e-ISA product. For all accounts opened from 1 July 2011, the e-ISA will no longer include a fixed introductory bonus. As a result, the e-ISA rate post 1 July 2011 will be 1.75% AER/tax-free. The e-ISA will continue to be available online to existing Nationwide customers with a card-based account. It will also continue to allow unlimited withdrawals allowing customers access to their money when they need it.
Like before, the e-ISA will continue to accept transfers in.
The rates and product details on all Nationwide's Fixed Rate ISAs, Fixed Rate Bonds, Tracker Bonds and Nationwide's Flexclusive Saver and Save to Buy accounts remain the same.
Nationwide's existing Champion Saver, Champion ISA, e-ISA and Members' ISA Bond will be withdrawn from sale at the close of business on Thursday 30 June 2011.
Robin Bailey, Nationwide's director of savings, said: "Nationwide has over 10 million savers, all of which are likely to have a differing savings requirement and, over time, we know that those savers' needs have changed. People understand the trade off between having an easy or instant access and relatively low rate with better rates and limited access accounts. Our members have told us they would welcome a clear distinction between these savings needs, making it even easier for them to find the product that is best for them.
"This is why, as a result of that feedback, we have decided to rebuild our savings portfolio so that it better meets the needs of our customers and reflects the way savers shop. The launch of 75 Day Saver and ISA and Online ISA as well as the changes to the Champion products and to e-ISA have all been done with that in mind and to provide savers with the choice and clarity to be able to choose the right product.
"The products in our Champion range are ideal for customers who want long term value for their savings, letting Nationwide do the hard work for them by paying an average of the top five highest paying high street savings accounts, which means that they don't have to shop around.
"With these changes, our customers have never been more in control. They can easily find products that suit their needs and can rely on us to help them make these choices. We are here to make life easier for savers, enabling them to make smarter choices that meet their needs."