Nationwide Building Society has issued an update regarding its rewards and special products available to members. It is worthwhile reviewing what is currently on offer as some important savings changes are just around the corner.
Member Inquiry Sparks Response
The update came after a member contacted the mutual with a question about its products. Writing on social media, the customer expressed delight at discovering a new fixed rate bond made available to existing members. Nationwide is offering its top savings rate of 5 percent with its Member Exclusive Online Bond. Deposits of up to £10,000 can be made into the account, with the rate applicable for 15 months. Interest is paid annually and at the conclusion of the term.
The member asked Nationwide whether they had considered extending the offer to other accounts, specifically inquiring: "Is this offer available in an ISA? This would help your loyal customers save paying tax on hard earned cash savings."
ISA Benefits and Tax Changes
A significant benefit of ISAs is that no tax is payable on interest earnings or investment growth within these accounts. However, with other savings accounts, tax must be paid according to the income tax band on earnings above certain allowances. This is worth considering as the tax rates on interest earnings are set to rise soon. Nationwide responded by directing the member to details on their website about the ISAs they provide.
Range of Rates on Offer
In light of the customer's inquiry, Nationwide was asked whether there are any plans for comparable exclusive ISA products for dedicated members. A spokesperson stated: "At Nationwide, we offer a strong and competitive range of rates across all our savings products, including both ISAs and non-ISAs. We have had a particularly strong ISA season, with savers clearly valuing competitive rates and the reassurance of a trusted provider as they look to make their money work harder."
Regarding future products, Nationwide added: "Our Member Exclusive Bond is also a highly competitive product available to existing customers, and we will continue to reward members with member only deals like this, including on ISAs in the future. We also actively encourage customers to make the most of their ISA allowance, particularly at the start and end of the tax year."
£100 Payments for Customers
In other positive news for Nationwide customers, the organisation is distributing another instalment of its Fairer Share payment. More than four million customers will receive a £100 payment, which is being issued in June. This initiative involves Nationwide distributing its profits among customers, with a £100 payment having been made in each of the previous three years.
To be eligible, customers must have a qualifying current account alongside either a savings account or a mortgage with Nationwide. Nationwide is also currently offering a £175 switching incentive for those who transfer their current account to them. This money is available when moving to a new or existing FlexDirect, FlexAccount, or FlexPlus account.
Savings Tax Rule Changes
Two significant changes are coming into effect from April 2027 that savers should be aware of. The ISA allowance is being effectively reduced. Currently, up to £20,000 can be paid into these accounts each tax year, split as desired between cash ISAs and stocks and shares ISAs. However, under the new regulations, only £12,000 will be accessible for deposits into any account, while the remaining £8,000 will need to be allocated to stocks and shares accounts.
Nevertheless, those over 65 will be exempt from the changes and will retain the current full £20,000 allowance. The rate paid on savings is also rising by two percentage points across all tax bands. This means for basic rate taxpayers, the rate will increase from 20 percent to 22 percent.
