Nationwide ISA Review 2021 | Features, And Benefits

The 1 Year Triple Access Online ISA available at Nationwide Building Society currently pays 1.21% interest per year. As this is a variable AER offer, the rate of interest can fluctuate – depending on market conditions. Notably, this is usually in response to a change in Bank of England interest rates.

Nevertheless, the 1 Year Triple Access Online ISA will allow you to make three withdrawals during the one year period, which is great if there is the slightest of chances that you think you might need to access the cash. As long as you don’t make more than three withdrawals in the 12-month period, you won’t lose any of the interest. All of the interest that comes with the 1 Year Triple Access Online ISA is tax-free, up to your annual ISA allowance.

If you’re looking for a fixed rate of interest as opposed to a variable rate that changes further down the line, then it might be worth considering the Fixed Rates ISAs currently being offered by Nationwide Building Society. The specific amount of interest that you are able to get will depend on how long you are happy to lock your money away for. At the time of writing, a 1 year, 2 year, and 3 year Fixed Rate ISA will pay 0.75% AER, 0.85% AER, and 1.00% AER, respectively.

As such, you will need to lock your money away for the full three years in order to get the highest rate of 1.00%. It is important to note that regardless of which lock-up period you opt for, you won’t be able to make a withdrawal until the term concludes.

On the other hand, Nationwide will allow you to transfer other ISA funds that you are holding elsewhere once you open the account, which is an added bonus. As is the case with the variable ISA account, all earnings are tax-free up to your annual limit, and the account can be opened online, but not via your mobile app.

An Inheritance ISA is suitable for those that have had a partner pass away, and they were in possession of an ISA. This allows you to earn interest on the account balance held in your deceased partner’s ISA account. Take note, you need to have been married to your partner (or in a civil partnership), as well as living in the same home.

Nevertheless, the Inheritance ISA offered by Nationwide Building Society pays between 0.30% and 0.50% AER. The specific rate that you get will be dependent on the amount of money that is currently in your deceased partner’s account. It is important to note that you can hold an Inheritance ISA alongside an ISA of your own.

In terms of the fundamentals, earnings made on the Inheritance ISA will be tax-free, and you can access the account at any time. As such, you won’t be penalized for making a withdrawal – albeit, this is reflected in the super-low interest rate being offered. Finally, you will not be able to make any transfers, and the account can be opened online or in a branch.

If you’re the type of person that doesn’t want to lock their money away, and thus, you need instant access at all times – then you might be best to stick with the Instant ISA Saver. This particular Nationwide Building Society ISA offers a measly interest rate of between 0.30% and 0.50%.

The overarching reason for this is that you will be able to make a withdrawal from your ISA at any given time – and not get penalized for it. In this sense, it operates in a similar way to a traditional savings account. With that being said, you might be able to find a conventional savings account that pays a higher rate of interest that the Instant ISA Saver being offered by Nationwide Building Society, so do bear this in mind.

Much like in the case of the Inheritance ISA, the specific rate that you are offered will be dependent on your account balance.  When it comes to the fine points, you can make as many transfers into your Instant ISA Saver account as you want, and all of the interest that you make is tax-free, up to your annual limit. Finally, you can open the account online or in a branch.

If you’ve got a slightly higher appetite for risk, or you simply don’t want to be making sub-1% per year, then you might want to consider a Stocks and Shares ISA at Nationwide Building Society. First and foremost, it is crucial to note that unlike the other four ISAs we have discussed, you stand the real chance of losing money if you opt for a Stocks and Shares ISA.

The reason for this is that the ISA simply acts as a Stocks and Shares account that allows you to benefit from tax-efficient savings. As such, your stocks could just as easily go down as they could up, meaning that although you’ll save on your tax obligations, your investment might end up leaving you with less money.

Nevertheless, if you do want to take the extra risk on, you have the choice of investing on a solo basis via the Nationwide Aegon Customer Dashboard, and subsequently choosing the shares yourself. Alternatively, if you have savings of £50,000 or more, then you can utilize the expertise of a Nationwide financial advisor.