Home Local newsNationwide hikes rates as record 712 deals flood market

Nationwide hikes rates as record 712 deals flood market

by martyn jones

New data from Moneyfacts shows there are now 712 cash ISA products available – the highest level since records began in 2007.

At the same time, major providers including Nationwide Building Society are launching new fixed-rate ISAs with returns of up to 4.50% AER, as expectations grow that rates could stay “higher for longer”.

Record number of cash ISA deals hits 712

The latest figures show cash ISA choice has surged in April, with providers competing aggressively for savers’ deposits.

According to Moneyfacts:

  • Total cash ISA products: 712 (record high)
  • Average easy access ISA rate: 2.73%, up from 2.61% in March
  • Average one-year fixed ISA rate: 4.01%, the highest since May 2025

Experts say the spike is being driven by ISA season competition and savers looking to maximise allowances before future changes.

Nationwide launches fixed ISA rates up to 4.50%

In response to rising demand, Nationwide launched a new range of fixed-rate cash ISAs at the end of March:

  • 1 Year Fixed ISA: 4.35% AER tax-free
  • 2 Year Fixed ISA: 4.40% AER tax-free
  • 3 Year Fixed ISA: 4.50% AER tax-free
  • 5 Year Fixed ISA: 4.50% AER tax-free

Nationwide says the new rates are designed to give savers “choice” across both short and long-term options.

“Last chance” ISA window warning for savers

Financial experts are urging savers to review their accounts now, with the new tax year seen as a key opportunity to switch deals.

Caitlyn Eastell, personal finance analyst at Moneyfacts, said ISA competition has been boosted by the final year many savers can fully use their £20,000 allowance before rule changes.

She said providers are “enticing new deposits with attractive deals” as competition intensifies.

From April 2027, changes will restrict younger savers’ ability to put the full allowance into cash ISAs, with more potentially directed into stocks and shares.

Why rates are staying higher for longer

Analysts say savings markets have shifted away from earlier expectations of rapid rate cuts.

Instead, a “higher for longer” outlook is emerging, with inflation risks and global tensions keeping pressure on rates.

That could mean:

  • More competitive savings deals in the short term
  • But continued pressure from rising household bills and inflation

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What it means for savers

Ms Eastell said: “Savers should be taking advantage of this all-time high, and it may be especially timely as the new tax year is the perfect window to review their current deal and switch to ensure they can maximise their returns before thresholds tighten.”

She continued: “Markets have pivoted from the rate cut mindset seen earlier this year to a ‘higher for longer’ stance, or even potential rises, as the ongoing tensions in the Middle East threaten a fresh inflationary shock.

“Savers may enjoy more competitive returns in this environment; however, it can be a tricky balancing act because sharp spikes to household bills and inflation could quickly catch up, meaning savers may be left out of pocket.”

Do you have an ISA? Do you think it’s a good way to save? Tell us in the comments below.

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