Nationwide customers could soon see £900 bonus drop into accounts

Nationwide Building Society store
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Savers who opened a specific account could be in for a bonus of nearly £1,000.

On March 19, last year, Nationwide Building Society launched a 'One Year Fixed Rate ISA' and '2 Year Fixed Rate ISA' with an AER of 4.50% and 4.20% respectively. The tax-free accounts allow customers to save up to £20,000 each financial year, making them ideal for those who can afford to lock away their money at a fixed interest rate.

This means that these accounts will remain unaffected even if the Bank of England's base rate drops, as it has done recently. Interest is paid on the anniversary of the account opening, at the end of the term, and when the account closes.

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Therefore, those who opened the 1 Year Fixed Rate on its launch day will soon have access to their funds and a significant return. Nationwide recently confirmed a £410 cash boost for customers this February. The amount of money people get will depend on the interest rate and how much savings they have.

If you deposited the maximum £20,000 into the ISA on the first day, you would have earned a staggering £900 in interest by the time the account matures, which equates to around £75 per month, Chronicle Live reports. If you opened the account with £1,000, you would have earned £42.

Those who opened the 2 Year ISA will have to wait until 2026 before they can access their savings. While Fixed Rate ISAs are an excellent way to avoid unfavourable interest rates, they may not suit everyone, reports the Mirror.

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As this is a lump sum account, you cannot add more money to it once it's been opened, meaning it will only appeal to those who already have substantial savings. Nationwide is implementing significant changes that will affect how account holders can withdraw funds. Beginning 1 February, if customers need to take money out, they must withdraw the entire amount and close the account, incurring an early access charge equal to 60 days' interest.

Moreover, those opting for Nationwide's 1 Year Fixed Rate Cash ISA today will be looking at a reduced interest rate of 4.10% AER, while the 2 Year Fixed Rate Cash ISA has vanished from the offerings on the bank's website.

With the changes looming, Tom Riley, Director of Retail Products at Nationwide, reassured customers: "We have worked hard to limit the impact of the recent rate cut on our savers and have taken the decision to hold rates on some of our most popular accounts, such as our leading Flex Regular Saver," added, "Following these changes, our savings range will remain competitive. We returned a record £950 million in member financial benefit in the first half of this year and we'll continue to give savers every reason to put their money with Nationwide."