Nationwide 3-year fixed-rate cash Isa pays 4.4%Market-leading interest rate tops cash Isa tables
24 February 2010
Nationwide has today launched a market-leading three-year fixed-rate cash Isa paying 4.40% AER on balances of £1 or more.
The new branch-based Isa accepts transfers in from other cash Isa providers and is available for consumers aged 16 and over. The 4.4% rate is paid on all balances of over £1.
Best 3-year fixed-rate cash Isa deal on the market
Martyn Saville, Which? principal researcher, commented: 'The new Nationwide 4.4% deal is currently the best 3-year cash Isa rate on the market. In fact, it's not far off the best 4.6% rate currently available on the 5-year fixed-term cash Isa deal from Leeds Building Society, and doesn't tie you in for as long.
'As with other fixed-term deals, there are penalties if you decide to close your account early - 270 days' interest in the case of the Nationwide 3-year Isa - so it's important to consider if you can commit your cash for a full three years before signing up. With easy access cash Isa accounts currently paying no more than 2.65%, the new Nationwide deal could be very attractive to medium-term savers.'
To compare the new fixed-rate Nationwide cash Isa with the other best deals on the market, use the free Which? cash Isa finder, which includes details of instant-access, easy-access and fixed-term cash Isas.
New Nationwide variable-rate cash Isas launched
Nationwide has also launched a new variable-rate cash Isa, the 'Champion Isa', paying up to 2.50% AER, as well as an e-Isa paying a variable rate of 2.75% AER.
The Champion Isa’s interest rate is the average rate offered by the top five paying branch-based cash ISAs from a basket of eight key competitors chosen by Nationwide. Until 30 June 2011, the Champion ISA will also include a fixed introductory bonus of 1.35% per annum for balances of £1,000 or more. This means the Champion ISA currently pays a variable return of up to 2.50% AER. Savers can make one penalty-free withdrawal in each tax year without notice.
Andy Hutchinson, Nationwide head of savings, said: 'With Champion Isa, savers are safe in the knowledge that they will not have to chase competitive rates round the high street, as Nationwide will do that for them. For those who prefer to manage their accounts online, we have also launched the instant access online e-Isa, paying a competitive interest rate that is currently over five times the Bank of England base rate.'
To compare the new Nationwide variable-rate cash Isas with the Best Rate easy-access accounts from other providers, check out the Which? Best Rate cash Isa reviews.
Which? Money when you need it
You can follow @WhichMoney on Twitter to keep up-to-date with our Best Rates and Recommended Provider product and service reviews.
Sign up for the latest money news, best rates and recommended providers in your newsletter every Friday.
Or for money-saving tips, and news of how what's going on in the world of finance affects you, join Melanie Dowding and James Daley for the Which? Money weekly money podcast
For daily consumer news, subscribe to the Which? news RSS feed here. And to find out how we work for you on money issues, visit our personal finance campaigns pages.