Nationwide Building Society customers could claim £900 if they 'lock money' in high interest savings account

Customers who choose to invest £10,000 into the ISA over the space of a year should expect a return of £450.

If someone were to invest £20,000, which is the ISA allowance, they could be in receipt of a £900 windfall.

A Nationwide spokesperson said: "Our Fixed Rate Cash ISA is designed for savers looking to lock their money away for a fixed term.

"Your interest rate won't change during your fixed term.

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"Withdrawing money before your term ends closes the account and an early access charge will apply.

"Certain savings accounts suit certain types of savers. Find out more about who we designed this account for.

"Designed for savers willing to lock away their money for a fixed term; savers with a lump sum to deposit; savers looking for an interest rate that won't change.

“A cash ISA generally allows UK residents aged 18 or over to save up to their annual ISA allowance tax-free each tax year. The allowance is £20,000 for 2024/25."

Savers have benefited in recent year from the Bank of England's decision to raise the country's base rate numerous times.

Rates have been raised as part of the central bank's efforts to ease inflation which has contributed to the cost of living crisis.

The Bank's Monetary Policy Committee (MPC) recently cut the base rate from a 16-year high to five per cent.

This was in response to the consumer price index (CPI) easing to around two per cent.

While this is beneficial to borrowers, savings customers are likely to be hit by interest rate cuts and be awarded with lesser returns as a result.

Analysts are urging bank customers to take advantage of high interest accounts while they still have the chance.

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Caitlyn Eastell, a spokesperson at Moneyfactscompare.co.uk, said: "It is crucial savers keep on top of the changing market and make the switch to ensure they are not getting a raw deal, especially as we have seen some of the top rate deals drop below 5 per cent. It would not be too surprising to see more providers adjusting their rates in reaction.

“Since the previous inflation announcement, fixed rates have faced further reductions, so it may be wise for savers to begin considering locking into an interest rate while the majority continue to pay competitive returns.

"Longer-term rates have suffered the most, seeing drops as large as 0.31 per cent for a five-year term month-on-month.

"Although, typically, base rate cuts usually impact variable rates, we have been seeing an increasing number of providers lowering rates on accounts offering fixed returns."