Britain’s largest building society, Nationwide, has unveiled new ISA products and increased rates on some existing offerings, intensifying competition in the savings market ahead of the new tax year in April.
Among the new additions are a one-year single access Isa and a one-year single access saver, both featuring a variable interest rate of 4.00% AER (annual equivalent rate).
Savers opting for these products should note the variable nature of the rate, which can fluctuate.
A key condition stipulates that only one withdrawal is permitted over the 12-month term; exceeding this limit will see the rate significantly drop to 1.05% AER for the remainder of the period.
Nationwide also confirmed on Friday that it has boosted rates across its fixed-rate cash Isas. This includes a five-year fixed rate now standing at 4.25%, an uplift from its previous offering of 4.00%.
Caitlyn Eastell, a personal finance analyst at Moneyfactscompare.co.uk, said: “With the new tax year fast approaching, Isa season is coming into full swing.
“Typically, this is when providers will compete most fiercely to make their deals enticing to new customers.
“This year is gearing up to be particularly competitive because the 2026-27 tax year marks the final year for those under 65 to utilise their full £20,000 cash Isa limit.
“Nationwide Building Society’s latest hikes to their fixed-rate cash Isas are enough to push a handful of them into the top rate tables, with the five-year option now paying a market-leading 4.25%.
“Fixed-rate accounts may be a popular option among savers to protect their returns for longer. While short-term base rate expectations are volatile, markets are widely predicting interest rates to fall longer term, which can drag savings rates down with it.
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“However, while its access Isas offer inflation-busting 4.00% headline rate, savers are very limited with the number of withdrawals that can be made.
“Many of market-leading easy access (deals) allow unlimited access and they currently pay around 4.50%.”