The group will soon be issuing bonus payments to customers
Nationwide Building Society has shared an update on its rewards and special products available to its customers. It’s well worth checking what’s on offer, as some significant changes to savings rules are on the horizon.
The update came after a customer query directed at the mutual on social media. The account holder said they were happy to see a new fixed rate bond on offer for existing customers.
Nationwide is offering its top savings rate of 5 per cent with its Member Exclusive Online Bond. Customers can deposit up to £10,000 into the account and can get the rate for 15 months. Interest is paid annually and at the end of the 15-month term.
The customer enquired whether Nationwide had considered extending the offer to other accounts. They asked in particular: “Is this offer available in an ISA? This would help your loyal customers save paying tax on hard earned cash savings.”
A key benefit of ISAs is that no tax is levied on interest earnings or investment growth within these accounts. However, with other savings accounts, tax must be paid in line with your income tax band on earnings above certain allowances.
It’s worth thinking through your tax liabilities here, as the tax rates applied to interest earnings are set to rise shortly. Nationwide responded to the question by directing the customer to information on their website detailing the ISAs they currently offer.
Nationwide statement
In light of the customer’s query, Nationwide was pressed on whether it has any plans to introduce similar exclusive ISA products for its loyal members. A spokesperson commented to say: “At Nationwide, we offer a strong and competitive range of rates across all our savings products, including both ISAs and non-ISAs.
“We’ve had a particularly strong ISA season, with savers clearly valuing competitive rates and the reassurance of a trusted provider as they look to make their money work harder.”
Regarding future offerings, Nationwide said: “Our Member Exclusive Bond is also a highly competitive product available to existing customers, and we’ll continue to reward members with member only deals like this, including on ISAs in the future. We also actively encourage customers to make the most of their ISA allowance, particularly at the start and end of the tax year.”
£100 payments
In further positive news for Nationwide customers, the building society is rolling out another round of its Fairer Share payment. Over four million customers will receive the £100 payment, which is being distributed in June.
This initiative is where Nationwide distribute a portion of its profits amongst its customers. A £100 payment has been made in each of the last three years.
To be eligible, you’ll need a qualifying current account alongside either a savings account or a mortgage with Nationwide. Nationwide is also currently offering a £175 switching incentive should you transfer your current account to them.
The payment is available when you move to a new or existing FlexDirect, FlexAccount or FlexPlus account.
Savings rule changes
Two significant changes are due to take effect from April 2027 that savers ought to be aware of. The ISA allowance is set to be effectively reduced.
Currently, you can deposit up to £20,000 each tax year into these accounts, split however you choose between cash ISAs and stocks and shares ISAs. However, under the new regulations, only £12,000 will be permitted for deposits into any account, while the remaining £8,000 must be allocated to stocks and shares accounts.
However, over 65s will be exempt from these changes and will keep the existing full £20,000 allowance. The rate applied to your savings is also set to rise by two percentage points across all tax bands. This means basic rate taxpayers will see their rate climb from 20 per cent to 22 per cent.
