Nationwide to pay bonuses to customers worth up to £900
Some Nationwide customers will soon be set for bonus payouts worth hundreds of pounds. Savers who opened certain accounts last year will be getting their interest payments over the next few months.
Nationwide launched its One Year Fixed Rate ISA and 2 Year Fixed Rate ISA in March 2024, with interest rates of 4.5% and 4.2% respectively. The tax-free accounts allow customers to save up to £20,000 every financial year, but the cash must be locked away for the account term.
The interest is paid on the anniversary of the date the account was opened, at the end of the term, and on the day your account closes. Those who opened the 1 Year Fixed Rate when it launched will soon see interest payments landing in their accounts.
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Savers who put in the maximum £20,000 into the ISA on day one will earn £900 in interest one year on, the Mirror reports. If you opened the account with £1,000 - you will have earned £42. Customers who opened a 2 Year ISA will have to wait until 2026 before they can access their savings.
Fixed-rate ISAs aren't suitable for everyone. They are lump sum accounts so savers can't add more money to it once it's been opened. So it only appeals to those who have substantial savings to begin with.
Savers should aim to ensure they will never need to withdraw the money. This is because they will have to close the account and will then be hit with an early-access charge.
Those wanting to open Nationwide's 1 Year Fixed Rate Cash ISA today will receive a smaller interest rate of 4.10%. The 2 Year Fixed Rate Cash ISA account is no longer advertised on the bank's website. Nationwide is making some major changes to the majority of its savings accounts starting February 1.