Nationwide Announces Savings Account Interest Rate Will Rise This Week | Personal finance | Finance

The new interest rate of 0.70% AER will come into effect from Thursday 17 March. These rates are available to existing customers as well as new ones who want to start saving and investing.

Nationwide Building Society is the latest high street provider to make changes to its ISAs and savings accounts to keep them competitive.

The One-Year Triple Access Online ISA accepts transfers, so customers can transfer balances from other domestic ISAs or from an ISA account with another provider.

Customers can make three withdrawals during the 12 month period.

However, more withdrawals than that and the interest rate will revert to 0.01% for the remainder of the period.

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Rates are available for balances of £1 or more and monthly interest options are available on ISAs and fixed rate bonds (excluding online bonds) for those who prefer to draw regular income from their saving.

The Society’s fixed-rate ISAs also accept transfers, so people can move ISA balances from other providers or from an existing domestic ISA.

Tom Riley, director of banking and savings at the Nationwide Building Society, said now is a good time to open one of these accounts as the end of the fiscal year approaches.

He said: “Savers will often wait until this time of year to fully utilize their ISA allowance. So, with the end of the fiscal year fast approaching, we have decided to increase the rate of our ISA online with triple access.”

He continued: “The new rate means we are giving savers the ability to use their ISA allowance in a product that offers a competitive rate coupled with the ability to access their money when needed.

“ISAs remain an important product for many savers because the interest from a cash ISA does not count towards your personal savings allowance, so it remains a tax-efficient way to save for the short or long term.

“However, for those who may have already used up their ISA allocation for this year, we are also increasing the rate of our Triple Access online saver.

“We also like to offer savers a choice of products in which to save their money, which is why we are also launching a new range of one- and two-year fixed rate products.”

Accounts can be opened and managed online and have a minimum operating balance of £1.

After a year, they automatically switch to one of Nationwide’s instant access accounts.

People can also get up to £125 to upgrade to a Nationwide current account.

It is possible to switch to Nationwide in seven business days using the current account switching service.

Stephen V. Lee