Nationwide has increased the rates on its Cash ISA range, with one product now offering an AER of 5%. The building society launched new Fixed Rate Cash ISAs and Fixed Rate Bonds on Friday, October 23, saying the move raises the rates available to savers.
New rates across terms
The new products offer AERs ranging from 4.75% to 5%, depending on the length of the term. Richard Stocker, Nationwide's Head of Savings, said: "We're boosting rates across our Fixed Rate Bonds and Cash ISAs. With a range of terms from one to five years and rates of up to 5.00%, customers can choose the option that best suits how long they want to put their money away for."
Stocker added: "These increases underline our promise that our Fixed Rate Cash ISA rates match or beat the equivalent Fixed Rate Bond rate, while savers who prefer face-to-face service can continue to access our fixed rate products in branch."
Product details
The new Fixed Rate ISA offers include a 1 Year Fixed Rate Cash ISA at 4.75% AER, a 2 Year at 4.85% AER, a 3 Year at 4.90% AER, and a 5 Year at 5.00% AER, all tax-free and fixed. Fixed Rate Branch Bonds follow the same rates: 4.75% for one year, 4.85% for two years, 4.90% for three years, and 5.00% for five years, all AER/gross a year.
Fixed rate bonds allow savers to secure guaranteed interest, generally at higher rates than a current account, by locking funds away for a set period. There is no statutory limit on how much can be deposited or how many fixed rate bonds a person can hold, though individual institutions may set their own rules on deposit sizes.
ISA limits and benefits
Cash ISAs offer similar benefits, with interest paid tax-free and, depending on the type, more flexibility on withdrawals. However, for the 2026/27 tax year, deposits are capped at £20,000 across all ISAs a saver holds, which limits how much can be paid in compared with fixed rate bonds.
