Nationwide Building Society customers may be eligible for free £860

Nationwide Building Society has launched a new range of higher ISA rates, with savers able to earn up to 4.6 per cent on their tax‑free savings.

The updated products, confirmed on May 6, include a series of fixed‑rate cash ISAs offering some of the most competitive returns currently available.

The building society now offers four fixed‑rate options.

The one‑year fixed cash ISA pays 4.5 per cent AER, rising to 4.55 per cent for the two‑year version.

Both the three‑year and five‑year fixed ISAs offer the top rate of 4.6 per cent AER for those willing to lock their money away for longer.

According to Finder, the average UK saver has £19,214 set aside.

Someone depositing that amount into Nationwide’s one‑year ISA at 4.5 per cent would earn £860.58 in tax‑free interest over 12 months.

Choosing the three‑year fixed rate at 4.6 per cent would generate £2,762.37 over the full term, while the five‑year option would return £4,822.23.

Nationwide said the longer‑term accounts are designed for savers comfortable with locking away their money, while those needing more flexibility can opt for variable‑rate products.

The one‑year Triple Access ISA pays 3.30 per cent AER and allows limited withdrawals, while a one‑year Single Access Saver offers 3.30 per cent gross.

Both accounts drop to 1.05 per cent if four or more withdrawals are made in a year.

Richard Stocker, head of savings at Nationwide, said the society wanted to offer a mix of higher rates and flexible options.

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He said all ISA products are available in branch, by phone or online, adding that customers can also use the society’s in‑app budgeting tool to help manage their money.

Nationwide said the updated range reflects growing demand for competitive tax‑free savings products, with the new rates available immediately across its full network.

ISAs allow people to save or invest up to £20,000 each tax year without paying tax on the returns.

There are four main types of ISA: cash, stocks and shares, innovative finance and Lifetime ISAs.

Interest, income and capital gains earned within an ISA are tax‑free and do not need to be declared on a tax return.

Savers can split their annual allowance across multiple ISAs, although only one Lifetime ISA can be opened each year.

Cash ISAs typically hold savings accounts or NS&I products, while stocks and shares ISAs can include funds, bonds and company shares.

Innovative finance ISAs cover peer‑to‑peer loans and certain crowdfunding investments, with rules on what can be transferred between accounts.