Nationwide hikes rates on fixed-rate savings accounts and cash Isas to as much as 5%

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Nationwide has upped savings rates to as much as 5 per cent on its fixed-rate bonds and cash Isas.

Britain's biggest building society is offering fixes on both bonds and Isas for between one and five years, with the top 5 per cent rate available on a five-year fix.

If you want to fix for a shorter length of time, your rate will be lower – Nationwide is offering a one-year fix at 4.75 per cent.

There's no difference in rates whether you're going for a bond or a cash Isa – so your choice of product should be determined by whether you've used your tax-free Isa allowance or not.

There's no tax-efficient wrapper around a fixed-rate bond. This means if you earn more interest than your personal savings allowance each year, you'll get a tax charge.

The building society is only the latest provider to boost rates on its savings accounts, with rates across the market at some of their highest levels in years. 

For example, a rates battle among cash Isa providers has seen Trading 212* boost the interest on its easy-access cash Isa to 4.83 per cent, which includes a 1.23 per cent 12-month bonus.

How do the rates compare?

Nationwide's rates compare well against the top deals available from less well-known providers.

Nationwide's rates are not table topping, but are among the best for a high street name – and below, we compare against the top deals available from less well-known providers.

Fixed-rate bonds compared 

Fixed-rate cash Isas compared

Nationwide has promised that rates on its fixed cash Isas 'match or beat' the equivalent rates on fixed bonds.

Check the rate you're receiving and switch if necessary

Fixed rates on savings accounts are strong at the moment. If you haven't checked what rate you're getting on your savings, you can check – and switch if it's poor.

Research from rates scrutineer Moneyfacts last week revealed that all the top fixed-rate accounts were paying 5 per cent and above for the first time since 2023.

Even if you can't lock your money away behind a fix, rates on easy-access accounts are also sitting high.

You can take out a 12-month easy-access savings account from Cahoot at 4.52 per cent. The minimum deposit is £1 and you can make as many withdrawals as you want.

In terms of easy-access cash Isas, we've recently seen a rates battle among providers, with Chip, Plum and Trading 212 duking it out to offer the top deal.

• Plum Easy-Access Isa* (£1+) – 4.84 per cent (with 2.27 per cent bonus for 12 months)
• Trading 212* (£1+) – 4.83 per cent (with 1.23 per cent bonus for 12 months)
• Chip Cash Isa (£1+) – 4.82 per cent (with 1.32 per cent bonus for 12 months)

The above accounts are flexible Isas, which means you can withdraw your money and replace it in the same tax year without reducing your Isa allowance.

Just check that the account suits you and that there are no terms and conditions that you dislike – for example, if you transfer out of Chip's cash Isa you'll forfeit any unpaid interest.

The rates are also lower than those listed above if you're transferring in. Plum's transfer-in rate is just 3.75 per cent, while Trading 212 only pays the boosted rate on contributions made this tax year.