Nationwide ISA

By: EconomyWatch   Date: 25 September 2009

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Nationwide ISA (Individual Savings Account) is a tax saving investment that allows you to invest in cash or in stocks and shares. Nationwide offers many types of individual savings accounts including Fixed rate ISA bonds, tracker ISA, stocks and shares ISA and Member’s ISA Bond.

 

Nationwide ISA – Offerings

A Nationwide ISA works like a normal savings account, but one needn’t pay income tax or capital gains tax on the returns. Like any other ISA scheme, one has a cash limit of £3,600 each tax year. The rest £3,600 of the total allowance or the entire allowance can be invested in a Nationwide stocks and shares ISA.

 

Instant Access Nationwide ISA: Nationwide offers cash ISAs with the instant access option. When you make a withdrawal, you needn’t pay any fees and there is no waiting period. The bank accepts transfers from other providers. This account is a good option for people who want the flexibility to withdraw their money whenever the need arises.

 

Fixed Rate ISA Bonds: Nationwide offers fixed rate ISA bonds in which investments are made in a lump sum and a fixed rate of interest will be paid for the fixed term. One can choose the terms from six months to five years. The interest rate on this type of Nationwide ISA is guaranteed.

 

Tracker ISA: In this type of Nationwide ISA one needs to make a lump sum amount for a fixed term and variable interest rates will apply. The company guarantees that the changes in interest rates will be inline with the changes in the Bank of England’s base rate. Although partial withdrawals are not allowed, one can withdraw the entire amount any time.

 

Members’ ISA Bond: In this Nationwide ISA, the bank offers higher interest rates to those who have been members of the bank for three years or more. One can make one deposit and one withdrawal each tax year. A withdrawal can be made with a 60 days notice period or loss of interest.

 

Stocks and Shares Nationwide ISA: You can invest up to £7,200 in stocks and shares every tax year. You can choose from six funds that the bank offers. Also, you can invest in more than one fund to spread the risks.

 

One should choose a Nationwide ISA account based on the propensity to take risks and the necessity for withdrawals. Nationwide offers competitive interest rates.

 

 


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