Nationwide Building Society has launched two new issues of popular ISA products which offer inflation-busting interest rates.
However, savers only have a couple of weeks to take advantage of these accounts in the 2023/24 financial year before a pending deadline in less than two weeks time.
The products in question are the building society’s one-year and two-year fixed ISAs.
Both savings accounts have interest rates higher than the latest Consumer Price Index (CPI) rate of inflation.
For the 12 months to February 2024, inflation in the UK plummeted to 3.4 per cent, the lowest in over two years.
However, the deadline for someone to take advantage of their full ISA allowance for 2023/24 is Friday, April 5. After this date, the ISA allowance will reset to £20,000 per year for 2024/25.
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Nationwide has launched two new ISAs ahead of an important deadline
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Through ISAs, savers are able to deposit money into the savings product tax-free up to a certain amount.
Account holders can place up to £20,000 in one ISA or split the allowance across multiple different accounts.
With their latest issue, Nationwide Building Society’s savings accounts are offering customers:
- One-year fixed rate ISA - offering 4.50 per cent AER/tax-free
- Two-year fixed rate ISA - offering 4.20 per cent AER/tax-free.
Britons who want to take advantage of these rates, that are higher than inflation, and use their full tax-free allowance for this year have days left to do so, according to experts.
James Hyde, a spokesman for Moneyfactscompare, issued a stark warning about the “limited time” savers have.
He explained: “The new tax-year in April is less than a fortnight away, and savers who wish to utilise their full ISA allowance now have limited time to do so.
“Providers would traditionally improve their ISA rates, as competition for last-minute investment intensifies.
“The Bank of England’s projection is that inflation will sit at around 2.8 per cent by Q1 2025, which should allow consumers plenty of options to see real term returns on their cash savings.
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The Bank of England base rate is at a 15-year high of 5.25 per cent GB NEWS“It remains crucial, as ever, that savers consider all options available to them, and are prepared to switch if they could be better served elsewhere.”
These interest rates are available to nationwide customers for balances of £1 or more.
The building society’s fixed rate ISAs accept transfers in and can be opened through the Nationwide website, Internet Bank, Banking app or in branch.
It should be noted that all Fixed Rate ISAs were withdrawn from sale at close of business on March 18.