Nationwide has announced a boost to interest rates on several of its savings products, with customers now able to earn up to 4.55% on their cash. This is the second time this month that the building society has increased rates on its fixed-rate bonds and ISAs.
The one and two-year fixed-rate cash ISAs now pay 4.5% and 4.55% AER, up from 4.4% and 4.5% earlier in August. Similarly, the one and two-year taxable fixed-rate bonds have seen their rates rise to 4.5% and 4.55%, from previous rates of 4.25% and 4.3%.
While these new rates are higher than those offered by the 'Big Four' banks (NatWest, Barclays, Lloyds, and HSBC) for similar accounts, other providers currently offer higher headline rates. For instance, AlRayan Bank offers 4.72% on a one-year fixed-rate cash ISA and 4.87% on a one-year fixed-term bond, according to Moneyfactscompare data from 27 August.
Rachel Springall, a finance expert at Moneyfactscompare, noted that Nationwide provides in-person support at branches, which may be beneficial for customers who find digital banking challenging. Fixed-rate cash ISAs from Nationwide accept minimum investments of £1 and allow transfers from both cash and stocks and shares ISAs, with early access possible subject to a penalty.