Nationwide Building Society has issued an update (Image: Google)
Nationwide Building Society has provided an update about its rewards and special products available to customers. It’s worth checking what is on offer as some key savings changes are coming up.
The update came after a customer reached out to the mutual with a question. Posting on social media, the person said they were pleased to see a new fixed rate bond being offered to existing customers.
Nationwide is offering a top savings rate of 5 per cent with its Member Exclusive Online Bond. You can deposit up to £10,000 into the account and enjoy the rate for 15 months. Interest is paid annually and at the end of the 15-month term.
The customer asked Nationwide if they had considered expanding the offer to other accounts. They queried: “Is this offer available in an ISA? This would help your loyal customers save paying tax on hard earned cash savings.”
A key advantage of ISAs is that you don’t pay any tax on your interest earnings or investment growth within these accounts. But with other savings accounts, you have to pay tax in line with your income tax band on your earnings above certain allowances.
This is worth thinking about as these tax rates you pay on your interest earnings are increasing soon. Nationwide replied to direct the customer to some information on their website about the ISAs that it offers.
In light of the customer’s question, Nationwide was asked if it has any plans for similar exclusive ISA products for its loyal members. A spokesperson said: “At Nationwide, we offer a strong and competitive range of rates across all our savings products, including both ISAs and non-ISAs.
“We’ve had a particularly strong ISA season, with savers clearly valuing competitive rates and the reassurance of a trusted provider as they look to make their money work harder.”
On the question of future products, Nationwide said: “Our Member Exclusive Bond is also a highly competitive product available to existing customers, and we’ll continue to reward members with member only deals like this, including on ISAs in the future. We also actively encourage customers to make the most of their ISA allowance, particularly at the start and end of the tax year.”
£100 payments
In other good news for Nationwide customers, the group is issuing another round of its Fairer Share payment. More than four million customers will get the £100 payment, which is going out in June.
This scheme is where Nationwide shares out its profits with customers. There has been a £100 payment over each of the past three years. You need a qualifying current account along with either a savings account or a mortgage with Nationwide to qualify.
Nationwide is also currently offering a £175 switch payment if you’ll move your current account over to them. The cash is on offer when you switch over to a new or existing FlexDirect, FlexAccount or FlexPlus account.
Savings rule changes
Two key changes are coming in from April 2027 that savers should be aware of. The ISA allowance is being effectively reduced. At present, you can deposit up to £20,000 each tax year into these accounts, divided as you choose between cash ISAs and stocks and shares ISAs.
But under the new rules, only £12,000 will be available for deposits into any account, while the other £8,000 will have to be used for stocks and shares accounts. However, over 65s will be exempt from the changes and will retain the current full £20,000 allowance.
The rate you pay on your savings is also increasing by two percentage points across all tax bands. This means for basic rate taxpayers, the rate will go up from 20 per cent to 22 per cent.
