Savers with specific Nationwide accounts may receive a bonus of up to £900 soon, depending on their deposits and interest rates.
Teesside: Savers who opened a special account with Nationwide could get a nice bonus soon. If you opened a ‘One Year Fixed Rate ISA’ last March, you might see nearly £900 in your account.
These accounts let you save up to £20,000 each year at a fixed interest rate. The rates are 4.50% for the one-year ISA and 4.20% for the two-year ISA. This means your savings won’t be affected by any drops in the Bank of England’s base rate.
Interest is paid out on the anniversary of opening the account, at the end of the term, or when you close it. If you put in the maximum amount of £20,000, you could earn around £900 by the time your account matures. That’s about £75 a month!
However, if you opened the two-year ISA, you’ll have to wait until 2026 to access your money. Also, once you open a fixed-rate ISA, you can’t add more money to it later. This makes it better for those with a good amount of savings already.
Starting February 1, if you need to withdraw money, you’ll have to take out everything and close the account. This will come with a fee equal to 60 days’ interest. The interest rate for new one-year ISAs is now 4.10% AER, and the two-year option is no longer available.
Tom Riley from Nationwide said they’re trying to keep rates competitive despite recent cuts. They’ve returned a record £950 million in benefits to members this year and want to keep encouraging people to save with them.
