Nationwide introduces new ISAs

Thursday, 23 July 2009 12:00

Nationwide has created a new range of fixed-rate ISA bonds which include a five-year deal paying 4.5 per cent interest.

The new tax-free investments, being unveiled officially tomorrow, also include a one-year, two-year and three-year ISA.

Savers looking to lock their cash in for a year are being offered a rate of three per cent. Two-year ISA bond holders will receive a rate of 3.5 per cent and four-year investors will be paid interest at 3.75 per cent per annum.

The ISAs are repacked versions of previous products on the market. Nationwide has just increased the interest rates to make them more appealing.

Andy Hutchinson, head of savings at Nationwide, said: "The interest rate increase on a number of Nationwide's Fixed Rate ISA bonds is good news for those savers looking for a guaranteed rate of return on their tax-efficient savings."

Nationwide is accepting transfers into the new ISAs from previous investments. However, they require a minimum investment of just £1 to open.

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