Nationwide launches two new savings accounts and boosts rates on four ISAs – are they worth it?

Nationwide has launched two new savings products and boosted rates on four of its fixed-rate ISAs.

The new 1 Year Single Access ISA and 1 Year Single Access Saver are both hitting the market from today (6 March), offering a 4% interest rate.

The Single Access ISA does what it says on the tin – customers can only make one withdrawal before the interest rate drops. If you access the money more than once, you’ll be penalised with an interest rate of 1.05%.

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The interest rate on the account is variable so could change over the one-year term. At the end of 12 months, your money is moved into an instant access cash ISA. You will be told what the new interest rate will be before your cash is transferred.

The Single Access Saver is effectively the same account but any interest earned is taxable, so you could be taxed on it if you breach your personal savings allowance. Make more than one withdrawal and your interest rate will be reduced to 1.05%.

Nationwide is also increasing the interest rates on four fixed-rate ISAs from 6 March: its 1 Year, 2 Year, 3 Year and 5 Year Fixed-Rate ISAs. The 1, 2 and 3 Year ISAs’s new rates are 4.05% while the 5 Year now has a 4.25% interest rate.

The building society is pulling its existing 1 Year Triple Access ISA and 1 Year Triple Access Saver, both offering a 3.30% interest rate.

Richard Stocker, head of savings at Nationwide, said: “We’re pleased to be increasing rates across our ISAs and our instant access savings product, giving members even more long‑term value and meaningful benefits.”

How do the savings accounts compare?

None of these six Nationwide savings accounts are offering the best savings rates on the market, based on our research of data available from Moneyfactscompare.co.uk.

However, they are still fairly competitive, while some have the best rates in terms of those offered by the major banks and building societies.

It’s also worth considering other factors when deciding whether to open a savings account with a bank or building society. For example, if you want to bank with a provider that has a physical branch near you, Nationwide has pledged to keep all remaining branches open until at least 2030.

Our calculations are based on someone depositing £10,000 into one of the savings accounts, and all accounts we’ve mentioned below are FSCS-protected.

How Nationwide’s 1 Year Single Access ISA - 4% rate compares

Trading 212, Plum and Moneybox are all offering easy-access cash ISAs with rates of 4.54%, 4.53% and 4.52%, respectively.

Trading 212 and Plum allow for unlimited withdrawals while Moneybox lets you take out cash three times a year before penalising you with a lower rate.

Across the well-known banks and building societies, Nationwide’s 1 Year Single Access ISA is around the top of the market.

Harpenden Building Society is offering a Single Access Cash ISA at a more competitive 4.06% while Aldermore’s Single Access Account comes with a 4.11% rate.

How Nationwide’s 1 Year Single Access Saver - 4% rate compares

Tembo Money and Chip are both offering easy-access savings accounts with better rates than Nationwide’s 1 Year Single Access Saver.

The rates on their products are 4.55% and 4.20%, respectively, and both allow for unlimited withdrawals.

Across the big banks and building societies, Nationwide is close to the top, with Yorkshire Building Society offering a Four Access eSaver at 4.05% and Tesco Bank an account with a 4.06% savings rate.

How Nationwide’s fixed-rate ISAs – 1, 2, 3 (4.05%) and 5 Year (4.25%) – compare

The four fixed-rate ISAs Nationwide has boosted interest rates on are all close to top of the market, and in some cases market-leading across the main high street banks and building societies.

The 5 Year Fixed-Rate ISA is beaten only by Chetwood Bank which is offering 4.26% on its 5 Year Fixed Rate Cash ISA, but Nationwide’s rate is the best out of the well-known high-street banks.

Why is Nationwide increasing its savings rates?

Banks and building societies often compete fiercely for customers’ business in the run up to the end of the financial year when ISA allowances run out.

With 2026/27 the final year under 65s can deposit up to £20,000 into a cash ISA, before the limit drops to £12,000 for cash ISAs, the end of this financial year is “already gearing up to be particularly competitive”, said Caitlyn Eastell, personal finance analyst at Moneyfactscompare.

The Iran conflict could also be prompting providers to adjust their rates as well, as there’s speculation interest rates are less likely to fall, because inflation could rise amid the tensions.

Eastell said: “Given the falling expectations of a [Bank of England] base rate cut, rates may remain higher for longer and providers may even choose to offer even more competitive deals.”