As we enter the final year for Cash ISA savers to use their £20,000 annual allowance, Nationwide has made an announcement about its new rates, offering as much as 4.50% for ISA savers. The building society, which is one of the largest of its kind in the country, has revealed a slew of new fixed-rate ISAs for various types of savers, depending on how short-term or long-term their goals are.
Fixed Rate ISAs are a type of Cash ISA that involves locking away a lump sum and earning a guaranteed rate of interest for a set period of time. They can come in various forms, from one-year fixed rates to five-year rates. They are generally good for savers who are comfortable with not having instant access to a set amount and who are happy to leave it for a long period of time to earn the interest. Nationwide’s announcement comes as the 2026/27 tax year is the last in which savers can earn tax-free interest on up to £20,000 in a Cash ISA, unless they are over the age of 65 after that year.
Nationwide announced several new Fixed-Rate ISAs for savers, each with different interest rates and periods of time. They are:
- 1 Year Fixed Rate Cash ISA – 4.35% AER/Tax-free (fixed)
- 2 Year Fixed Rate Cash ISA – 4.40% AER/Tax-free (fixed)
- 3 Year Fixed Rate Cash ISA – 4.50% AER/Tax-free (fixed)
- 5 Year Fixed Rate Cash ISA – 4.50% AER/Tax-free (fixed)
Meanwhile, the building society also launched:
“We’re pleased to launch new higher rates across our ISA and Bond range with both short- and longer-term options,” said Richard Stocker, Head of Savings at Nationwide.
“All ISAs and rates are available in branch by phone or online, as we know customers value choice in how they bank, which is why we’ve extended our Branch Promise. Customers can also make use of our in‑app budgeting tool to help them manage their money.”
Derence Lee, Chief Finance Officer at Shepherds Friendly, said: “As the cash ISA limit drops from 2027/28, reviewing your allocations now and taking the time to understand stocks and shares ISAs can help you make full use of your ISA allowance and plan the right mix of cash and investments ahead of the changes coming into effect next year. ”
“Taking action sooner rather than later can help ensure you make full use of your ISA allowance, benefit from potential tax-free growth and get your long-term financial goals on track. However, investments should be considered in the context of your overall financial situation and risk tolerance.”
