Nationwide Building Society has introduced a new range of fixed rate savings products, marking a significant update for more than 16 million of its members across the UK.
The newly announced offerings include Fixed Rate Cash ISAs, Fixed Rate Bonds, and Fixed Rate Branch Bonds, all of which can be opened with a minimum deposit of just £1.
These products are designed to appeal to savers seeking security and predictable returns at a time of economic uncertainty.
The initiative was first reported by Birmingham Live and has since been confirmed by Devon Live, reinforcing Nationwide’s strategic positioning in the retail savings market.
New Savings Rates Introduced for 2024
The updated rates include both one-year and two-year options across the ISA and bond products. Each of the one-year products carries an interest rate of 4.00%, while the two-year equivalents are offered at 3.80%. These are available for balances starting from £1, providing accessibility across the customer base.
Nationwide stated that the Fixed Rate Bond and Fixed Rate Cash ISA can be opened online via the Nationwide website, Internet Bank, or Banking app. The Fixed Rate Branch Bonds, however, are available exclusively in-branch.
ISA Transfer Eligibility and Tax Benefits
The new Fixed Rate Cash ISAs accept transfers from existing ISAs, giving savers the flexibility to consolidate their tax-free savings. With an ISA, interest earned is exempt from income tax, potentially delivering higher net returns compared to standard savings accounts.
For the current tax year, individuals can deposit up to £20,000 across all their ISAs. Only the money deposited in the current tax year counts toward this allowance; interest earned and transferred funds from previous years’ ISAs are excluded from this cap.
According to the UK tax framework, adults aged 18 or over are allowed to open multiple cash ISAs and stocks and shares ISAs in a single tax year. Some providers may even allow several ISAs of the same type, such as up to three cash ISAs, depending on internal policy.
Others may limit customers to a single product of each type.
Nationwide’s Footprint and Customer Base
Nationwide is the largest building society in the world, serving more than 17 million customers. Of these, 16 million hold either a current account, mortgage, or savings product, thereby qualifying as full members of the society.
The organisation employs over 18,000 people, with a central hub located in Swindon and a branch network extending to more than 600 locations across the UK. Nationwide is also the third-largest mortgage provider in the country and is responsible for safeguarding almost £1 in every £10 saved by UK consumers.
The timing of the rate launch aligns with sustained consumer demand for stable, inflation-beating returns. These fixed-rate products offer a predictable yield, appealing to savers in uncertain economic conditions. The ability to open and manage these accounts through digital and in-person channels further supports their appeal.
