Nationwide, the UK building society with branches in Birmingham, has confirmed higher rates on its one and two-year Fixed Rate Bonds and Cash ISAs. The new products were launched on Wednesday, with the increases marking the second time this month that rates have been raised on these accounts.
New rates and products
For Fixed Rate Cash ISAs, savers can now access a 1 Year Fixed Rate Cash ISA at 4.50% AER/tax-free (fixed) and a 2 Year Fixed Rate Cash ISA at 4.55% AER/tax-free (fixed).
For Fixed Rate Bonds, the new rates are: 1 Year Fixed Rate Branch Bond at 4.50% AER/gross a year (fixed), 2 Year Fixed Rate Branch Bond at 4.55% AER/gross a year (fixed), 1 Year Fixed Rate Online Bond at 4.50% AER/gross a year (fixed), and 2 Year Fixed Rate Online Bond at 4.55% AER/gross a year (fixed).
Customers can access the same rates whether they choose to save online or in branch, according to Nationwide.
Context of the ISA limit cut
The rate increases come ahead of the cash ISA limit being reduced to £12,000 next year. The change will be overseen from April by Labour Party Prime Minister Andy Burnham and Chancellor John Healey, after being announced by his predecessor Rachel Reeves.
This move is part of wider changes to savings regulations that are set to affect savers across the UK.
Nationwide's statement
Richard Stocker, Nationwide’s Head of Savings, said: “We’re pleased to be increasing rates on our one and two-year Fixed Rate Bonds and Fixed Rate Cash ISAs for the second time this month.”
He added: “These products are ideal for those looking to put money away for a shorter period while benefiting from the certainty of a guaranteed return.”
Stocker also highlighted the building society's commitment to accessibility: “Customers can access the same rates whether they choose to save online or in branch, reflecting our commitment to choice and our Branch Promise, backed by the UK’s largest branch network.”
Member democracy campaign continues
Last month, a Nationwide customer vowed to fight on after losing a historic attempt to join its board and is plotting a fresh campaign to boost democracy at the building society.
James Sherwin-Smith secured about 12.5% of the vote, representing support from 75,939 Nationwide members, at the mutual’s annual general meeting.
Building societies, which are owned by their members, remain one of a few UK sectors that legally give customers the right to nominate peers for boardroom elections. However, the last member to sit on Nationwide’s board retired in 2002, and there are currently no member-nominated directors sitting on any of Britain’s 42 building society boards.
