Nationwide launches market-leading ISA

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Nationwide is to launch a new market leading fixed-rate ISA paying 3.3%.

The 18-month Loyalty fixed-rate ISA is to be introduced tomorrow, alongside the launch of its 18-month Loyalty fixed-rate bond, which pays the same amount of interest.

Currently, only Barnsley Building Society and Chelsea Building Society match Nationwide's 3.3% rate on their fixed ISA deals.


Nationwide's director for savings Robin Bailey says:

"The fixed-rate market continues to be a competitive place for savers looking to tie their money in for a fixed period at a rate of interest that won't change."

Both savings accounts can be opened with balances of just £1, but are only available to existing Nationwide customers.

Bailey says this demonstrates Nationwide's "commitment to offering long-term good value", and "our promise to reward existing savers".

The maximum that can be deposited into the ISA is £5,340 – the annual ISA limit, while savers can pay up to £5,000 into the bond or £10,000 if it's a joint account.

Savers will lose 180 days' worth of interest for closing either one of the Loyalty accounts early.

Andrew Hagger, spokesperson for comparison site Moneynet, recommends savers use the ISA before the fixed-rate bond because of the tax incentives:

"If you haven't made use of your annual tax-free allowance, then the ISA option should be your first port of call as it will immediately save you the 20% [or 40% for higher rate taxpayers] tax on any interest earned."


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Re the Nationwide new fixed rate ISA 3.3%, its about time all providers realised that due to the the amount of time they have been available and individually the money that people now have in ISA's there should now be more products (isa's) available with monthly income.
The Yorkshire B.S presently has available a a fixed rate ISA paying 3.4% until 31/01/2012 with a monthly option, transfers in allowed, which puts the Nationwides offer in the shade.

What happened to their policy of giving best rates to existing customers?? their web site states that

"Please note that transfers in from existing Nationwide ISAs or ISAs held with another provider are not accepted into this account."

Therefore if you already have an ISA for this year with them you miss out!

I had two ISAs with Nationwide, but moved them both out, when I discovered they were paying 0.25% and 0.45%. - disgraceful rates for a so called mutual; and I told them what I thought of their rates.
If they think I am moving back with a 'five minute' higher rate that will be lowered as soon as you look away, they are mistaken. Despite being a customer of theirs for 40 years, they need to know , we can move our business elsewhere and we will.

You are not the only one. I transfered my N. Wide ISA for same reasons and their childrens savers are awful too . The nationwide used to always feature in most of my savings plans , sadly no longer.

I closed my Nationwide Flexaccount mostly due to them 0% interest, but upon review I did not find a letter stating that change; they sneaked it out in one of their leaflets about "improved" interest rates!

As I was leaving after 21 years, all I got was the standard computer generated account closed and here is the cheque of the balance letter. Somebody in that Mutual Organisation is making lots of money - but not me!