Sunita Somvanshi
Nationwide, the world’s largest building society, has raised rates across its fixed-rate savings products for the second time this month, offering savers up to 4.55% on new accounts.
From Wednesday 26 August, customers can access the following rates on one- and two-year products: a 1-year Fixed Rate Cash ISA at 4.50% tax-free, and a 2-year Fixed Rate Cash ISA at 4.55% tax-free. The building society is also offering the same rates on its interest-to-propel-renewable-projects/”>Fixed Rate Bonds, available online or in branch, though the interest on these is taxable.
For savers weighing where their money could work hardest, the numbers matter. A £10,000 deposit in a 2-year ISA at 4.55% would earn roughly £455 in the first year. Someone putting aside £20,000 could expect around £910 annually at that rate.
Richard Stocker, Head of Savings at Nationwide, said the firm was “pleased to be increasing rates on our one- and two-year Fixed Rate Bonds and Fixed Rate Cash ISAs for the second time this month. These products are ideal for those looking to put money away for a shorter period while benefiting from the certainty of a guaranteed return. Customers can access the same rates whether they choose to save online or in branch, reflecting our commitment to choice and our Branch Promise, backed by the UK’s largest branch network.”
The move comes as savers search for better returns in a competitive market. The UK’s best available fixed rates currently sit around 5%, though Nationwide’s new rates remain competitive for those prioritising the security of an established building society with access to physical branches.
If you’re considering these accounts, there are important details to understand. ISA interest is entirely tax-free, making that 4.55% rate particularly valuable for higher earners. Interest on the bonds is taxable, though basic-rate taxpayers get a Personal Savings Allowance of £1,000 per year. Once you open a fixed-rate account, your money is locked in for the term you choose—no withdrawals allowed after the cooling-off period—so these accounts suit savers who can commit their funds for the full period.
These new rates are available from 26 August, representing Nationwide’s second rate increase this month.
