Nationwide Building Society has issued an update regarding its rewards and special products available to customers. With significant changes to savings rules on the horizon, it is well worth checking what is on offer.
Customer Query Prompts Update
The update followed a customer query on social media. The account holder expressed happiness about a new fixed rate bond for existing customers and asked whether Nationwide had considered extending the offer to an ISA, noting that ISAs help loyal customers save tax on hard-earned cash savings. A key benefit of ISAs is that no tax is levied on interest earnings or investment growth within these accounts, whereas other savings accounts require tax to be paid on earnings above certain allowances in line with income tax bands.
Nationwide's Response
Nationwide responded by directing the customer to information on its website detailing the ISAs currently offered. When pressed on plans for exclusive ISA products for loyal members, a spokesperson stated: "At Nationwide, we offer a strong and competitive range of rates across all our savings products, including both ISAs and non-ISAs. We have 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." Regarding future offerings, they added: "Our Member Exclusive Bond is also a highly competitive product available to existing customers, and we will 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."
Member Exclusive Online Bond
Nationwide is offering its top savings rate of 5% with its Member Exclusive Online Bond. Customers can deposit up to £10,000 into the account and receive the rate for 15 months. Interest is paid annually and at the end of the 15-month term.
Fairer Share Payments
In further positive news, Nationwide is rolling out another round of its Fairer Share payment. Over four million customers will receive a £100 payment, which is being distributed in June. This initiative distributes a portion of profits among customers, with a £100 payment made in each of the last three years. To be eligible, customers need a qualifying current account alongside either a savings account or a mortgage with Nationwide. Nationwide is also currently offering a £175 switching incentive for transferring a current account to them, available when moving to a new or existing FlexDirect, FlexAccount or FlexPlus account.
Upcoming Savings Rule Changes
Two significant changes are due to take effect from April 2027 that savers should be aware of. The ISA allowance is set to be effectively reduced. Currently, up to £20,000 can be deposited each tax year into these accounts, split between cash ISAs and stocks and shares ISAs. Under the new regulations, only £12,000 will be permitted for deposits into any account, while the remaining £8,000 must be allocated to stocks and shares accounts. However, over 65s will be exempt from these changes and will keep the existing full £20,000 allowance. The rate applied to savings is also set to rise by two percentage points across all tax bands, meaning basic rate taxpayers will see their rate climb from 20% to 22%.
