Nationwide rule update could mean £4,822 windfall for savers
Nationwide rule update could mean £4,822 windfall

Nationwide has introduced a policy update that could deliver customers as much as £4,800. The mutual has revised its ISA rates this week. The building society, competing with the likes of HSBC UK, Santander, Lloyds, NatWest and Barclays, announced that its one-year fixed cash ISA now pays 4.5 per cent AER, increasing to 4.55 per cent for the two-year product. Meanwhile, both the three-year and five-year fixed ISAs provide the highest rate of 4.6 per cent AER for savers prepared to commit their funds for extended periods.

Data from Finder indicates the typical UK saver holds £19,214 in savings. This means a person placing that sum into Nationwide's one-year ISA at 4.5 per cent would generate £860.58 in tax-free interest across 12 months, reports Birmingham Live.

Analysis of potential returns

Opting for the three-year fixed rate at 4.6 per cent would yield £2,762.37 throughout the entire term, analysis reveals. The five-year option would deliver returns of £4,822.23.

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Richard Stocker, Head of Savings at Nationwide, said: "We're pleased to launch new higher rates across our Fixed rate ISA range with both short- and longer-term options. For those who require more flexibility we also have our Triple Access offering."

"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."

Product details and availability

Nationwide said: "This means older versions of these products will no longer be available for new account openings from 6th May 2026 onwards. For more information on Nationwide's savings range, visit nationwide.co.uk."

The full range of rates on offer are as follows:

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  • 1 Year Fixed Rate Cash ISA – 4.50% AER/Tax-free (fixed)
  • 2 Year Fixed Rate Cash ISA – 4.55% AER/Tax-free (fixed)
  • 3 Year Fixed Rate Cash ISA – 4.60% AER/Tax-free (fixed)
  • 5 Year Fixed Rate Cash ISA - 4.60% AER/Tax-free (fixed)
  • 1 Year Triple Access ISA – 3.30% AER/Tax-free (variable) (1.05% after 4 or more withdrawals)
  • 1 Year Single Access Saver – 3.30% AER/Gross a year (variable) (1.05% after 4 or more withdrawals)