Nationwide opens two new 'competitive' ISA deals - with Britons warned to invest now to save on tax
Nationwide is offering the new ISA deals from today
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Nationwide Building Society has launched two new fixed rate ISA deals from today.
The bank's new rates coincide with the start of the new financial year - and Britons looking to invest their money have been urged to get in early to save on tax.
Nationwide said the ISAs offer "some of the most competitive rates" currently on the market.
The new one year fixed rate ISA offers an interest rate of 4.1 per cent, while the bank's two year fixed rate promises a return of 4.25 per cent.
The bank said the rates were among the most competitive in the market
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Existing customers and new ones can all take advantage of the deal by opening an ISA account online, via the mobile app or in one of the building society’s branches.
Tom Riley, director of Retail Products at Nationwide Building Society, said: "Cash ISAs are an important product for savers, as interest doesn’t count towards the personal savings allowance; it is a tax-efficient way to save for the short or long term.
"That’s why, to start the new tax year, we’re launching two fixed-rate ISAs offering some of the most competitive rates currently available on the market."
He added: "We know that not everyone will want to lock their money away because they may need access to their savings.
"That is why we also recently increased the rate on our One Year Triple Access Online ISA to three percent."
ISAs are tax fee, meaning any money made in interest from the savings can be withdrawn without giving money to the taxman.
For this reason, Sarah Coles, head of personal finance at Hargreaves Lansdown, has urged savers to deposit funds in the accounts "as soon as possible".
She warned that every year in which inviting was delayed was another year of paying tax unnecessarily.
Britons have been urged to invest in the Nationwide ISAs without delay to save on tax
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She explained: "By investing early, you get an extra year of protection from tax.
"If you hold investments outside an ISA, the fact that the dividend tax allowance has been halved, to £1,000, means investors run the risk of paying tax on their dividends far earlier in the year.
"By switching them into an ISA using the Bed and ISA process, they’re protected from this tax immediately."
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