Nationwide Building Society is launching Fixed Rate Online Bonds, Fixed Rate Branch Bonds and Fixed Rate Cash ISAs paying increased rates.
Nationwide has changed its ISA rules amid swirling reports of an allowance cut from Labour Party Chancellor Rachel Reeves. Nationwide Building Society is launching Fixed Rate Online Bonds, Fixed Rate Branch Bonds and Fixed Rate Cash ISAs paying increased rates.
The new rates are: 1 Year Fixed Rate Online Bond – 4.15% AER, 1 Year Fixed Rate Branch Bond – 4.15% AER, 1 Year Fixed Rate Cash ISA – 4.25% AER/tax-free and 2 Year Fixed Rate Cash ISA – 4.10% AER/tax-free
The rates are available for balances of £1 or more and savers can open the Online Bonds via the website, Internet Bank and Banking app while Fixed Rate Branch Bonds can be opened in branch.
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Nationwide’s Fixed Rate Cash ISAs accept transfers in and can be opened via the Internet Bank, Banking app or in branch. It comes as Ms Reeves reportedly looks to cut the allowance from £20,000 to just £4k.
Jason Hollands, of wealth manager Evelyn Partners, said having an ISA is a “no-brainer” and savers had been given a “stay of execution” for the coming tax year.
As reported by the Telegraph, he said: “Given the much tougher tax environment we’re in at the moment, an Isa is a no-brainer. Isa allowances are ‘use it or lose it’, so you should certainly be making the most of the £20,000 allowance before midnight on April 5 if you have the resources to do so. Isas are also flexible, so you can always withdraw the money later if you need it.”
All previous issues were withdrawn at close of business on 13 March 2025. Christie Cook, managing director of retail at Hodge Bank, previously warned: “The annual ISA allowance for the 2024/2025 tax year is £20,000. If you haven’t already reached this limit, now is the time to top up your account. Whether it’s through a Cash ISA, Stocks & Shares ISA, or Innovative Finance ISA, ensuring you fully use this allowance could result in significant tax savings.
“Following the previous tip about maximising your savings by using your full ISA allowance if you’ve been holding cash in a non-ISA account, consider transferring it to your ISA to benefit from tax-free interest or capital gains. This will allow you to gain more interest on the money you’ve been storing by reaping the rewards of tax-free interest.
“For those with a longer investment horizon, a Stocks & Shares ISA could provide higher growth potential compared to a traditional Cash ISA. By investing within an ISA, any returns are tax-free, giving you the opportunity to build wealth over time without worrying about capital gains tax.”