What are the current Nationwide Cash ISA rates?
Anya GairA Cash ISA is a savings account that gives you tax-free interest on up to £20,000 a year, meaning you’ll get to keep all of the interest you earn rather than losing a portion to income tax. Let’s take a look at current Nationwide’s ISA rates available.
If you’re on the lookout for the best Cash ISA for your savings, keep in mind that the familiar high-street banks don’t always offer the most competitive rates - take a look at our guide on the Best Cash ISAs in the UK for more information.
What are the current Nationwide ISA rates?
Nationwide currently offers two types of Cash ISA products, both with a 4.10% AER interest rate, although one is a fixed rate and the other variable. After 12 months of opening either account, you will be automatically moved onto an instant access Cash ISA which pays a lower rate of interest.
- Nationwide 1 Year Fixed Rate ISA: 4.10% AER/tax-free (fixed). Requires a minimum opening deposit of £1. As this is a fixed-rate account, you’ll be agreeing to lock away your money for a fixed period of 1 year. If you choose to withdraw your funds before this point, this will close the account and you’ll have to pay an early access charge equivalent to 90 days' interest. If the early access charge is more than the interest you've earned, you'll get back less money than you paid into your account.
- Nationwide 1 Year Triple Access Online ISA: 4.10% AER/tax-free (variable) for 12 months. Requires a minimum opening deposit of £1. Allows up to 4 withdrawals per tax year, but after 4 withdrawals your interest rate drops to 2.00% AER (variable) for the rest of the term.
Source: Nationwide Savings Accounts and ISAs. Rates accurate as of November 2024.
What is Nationwide’s best ISA rate?
Nationwide’s current best Cash ISA rate is 4.10% AER (fixed), which you can access by opening its 1-year Fixed Rate Cash ISA or its 1-year Triple Access Online ISA. Although these are competitive interest rates for a Cash ISA account, you’ll only be able to save into the account for a year.
Plus, there are other Cash ISAs on the market which pay a higher interest rate than this.
Is Nationwide a good ISA provider?
Nationwide offers a very small selection of ISA saving accounts, both of which have competitive interest rates. However, both accounts you can only have open for 12 months, before being automatically moved onto Nationwide’s instant Cash ISA with a much lower interest rate. There are other Cash ISAs available on the market that offer similar or better interest rates, without the same time restrictions. Plus, both Nationwide’s Cash ISAs have withdrawal limitations.
If you withdraw your money from their 1-year Fixed Rate Cash ISA, the account will close and you’ll have to pay an early access charge, which is typically the equivalent of 90 days’ interest. With Nationwide’s 1 Year Triple Access Online ISA, you are only allowed up to 4 withdrawals a year; anything over this and your interest rate drops to 2.00% AER (variable).
Can I have two ISAs with Nationwide?
Yes, you can have more than one ISA with Nationwide, but you can only pay into one Nationwide Cash ISA each tax year. You can open multiple ISAs in the same tax year with different providers, as long as you don’t exceed your annual ISA allowance of £20,000. So for example, you could also hold a Cash ISA, Lifetime ISA or Stocks and Shares ISA with a different provider.
Take a look at our guide on having more than one ISA to learn more.
Save for your first home faster with the market-leading Lifetime ISA
With a Tembo Cash Lifetime ISA, you can save up to £4,000 a year towards your first home or retirement. You’ll get a 25% bonus up to £1,000 from the government each year you save into the account, plus our market-leading 4.75% AER (variable) rate interest.
When considering opening a LISA, remember that withdrawals for any purpose other than buying a first home or for retirement will incur a 25% government penalty, meaning you may get back less than you paid in.
Will Nationwide increase ISA rates?
Nationwide might increase its ISA rates, but it also could lower them. It depends on what is happening with the wider market and live interest rates. If other banks and building societies start lowering or raising their Cash ISA rates, Nationwide could follow suit. If you already have a Nationwide Fixed Rate Cash ISA, your interest rate will stay the same for the remainder of your fixed term - even if Nationwide’s ISA rates change.
Learn more: Cash ISA or Lifetime ISA. Which one should I pick?
How to find the best Cash ISA Rates
Opening a Cash ISA with the same bank you have a current account with, particularly if you’ve banked with that particular provider for a long time, may seem like the most straightforward option. In fact, 52% of people with a Cash ISA use the same provider for their tax-free savings as they do for their current account. However, you could be missing out on a better interest rate elsewhere. Compare different ISA providers, including smaller banks which might not be on the high street, to decide on the right account for you.
How to transfer my Nationwide ISA to another provider
To transfer your Nationwide ISA to another provider, all you need to do is open the new Cash ISA and request a transfer. Moving the money over yourself could have an impact on your savings’ tax-free status.
For example, let’s imagine you’ve saved £25,000 in a Cash ISA over a number of years and you’d like to transfer the money to a new provider offering a more competitive interest rate. Moving the money over yourself would use up your full £20,000 ISA allowance for this year, forcing you to place the remaining £5,000 in a traditional savings account until the following tax year. Until then, any interest earned outside your ISA could be taxed. By asking your new provider to make the transfer for you, you’ll protect your savings’ tax-free status and preserve any remaining ISA allowance for this year.
First-time buyer?
Did you know if you open a Lifetime ISA you can get an additional 25% boost to your house fund for free!
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Coming soon:
Tembo Cash ISA
We know that your savings goals don’t vanish once you’ve bought your first home, or you might want to deposit more than £4,000 each year. So we’re launching a Cash ISA; so you can save up to £20k each year, tax-free.
FSCS-protected up to £85,000
Tax-free deposits up to £20,000
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