A simples guide

Compare Nationwide ISAs

Nationwide Building Society is a British institution and so inevitably has a range of ISAs that will suit most people’s needs. You need to make sure you choose the right one for you as they can range from flexible easy access accounts right through to longer fixed term/limited access products.  

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Why use an ISA?

An ISA, or Individual Savings Account to give it its full name, is available to all UK residents. Every year, each of us has an annual ISA allowance to invest into an ISA. The limit is currently £15,240 for this tax year in 2016 and will increase to £20,000 next year.

In many ways, a cash ISA is similar to a savings account. You put money in - it earns interest. Typically, the longer you can leave the money in - the better the rate you will get. However, there’s one important difference that could make the ISA an attractive way to save. All interest earned within the ISA is tax free.

Nationwide ISAs

Nationwide has a number of ISA’s that pay competitive rates of interest.

The Instant ISA Saver could be useful if you need to withdraw your money. This ISA allows unlimited withdrawals and, if you wanted to replace funds later, you can do so within the same tax year without it affecting your allowance. Despite this flexibility, the ISA still pays a very competitive rate on all balances over £1, with interest calculated daily and paid once a year.

If you’re already a Nationwide customer, you can benefit from the same flexibility as the Instant ISA Saver while getting an even better interest rate. The Flexclusive ISA, available to main current account customers.

If you’re sure you won’t need to access your funds for a year, you could open a 1 year Fixed Rate ISA. Nationwide will reward you for locking the funds away with a slightly better interest rate. Remember, if you did need the funds back you would need to close the account which will incur an early access charge.

If you’re able to invest for two years, there’s the 2 year Fixed Rate ISA. This operates with the same conditions as the 1 year ISA but this time for a two-year period. Again, if you’re able to leave the money invested, you can benefit from a better rate due to leaving the money in for longer..

If you’re a first-time buyer, the Help to Buy ISA could give your savings a boost.  Invest an initial amount of up to £1,200 and then up to £200 each month and you’ll earn a higher interest. When you’re ready to buy a property, your solicitor can also claim you a bonus of 25% of your closing balance to put towards your purchase. The minimum bonus is £400 (on savings of £1,600) and the maximum bonus on savings of £12,000 and above is £3,000.

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Comparing other ISAs

With interest rates at their current low, it pays to compare to make sure you’re getting the best interest rate available while still having the flexibility you need. To compare Nationwide ISAs against ISAs from other suppliers, you can use our simple to use comparison service.

All Nationwide ISA account details are based on information provided on www.nationwide.co.uk data on 9 November 2016.

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