Nationwide ISA options currently include a selection of Cash ISA’s plans such as 1, 2 and 3 year fixed rate options and instant options as well as offering a stocks & shares ISA and junior ISA. However before you decides it’s a good idea to shop around to make sure you get the most from your annual allowance, why not check out the comparison table below to check a selection of top, best buys to see if you can decide which plan is best for you:
Nationwide Cash ISA’s:
- Fixed rate: Offer a choice of 1, 2 and 3 year fixed rate ISA’s. These allow you to transfer in a set amount when you open the account and lock it was for a set period of time, you cannot however make and withdrawals in this period, the longer you can lock your money away for the better fixed rate, tax free interest you can earn.
- Flexiclusive ISA: Exclusively available to Nationwide main current account customers, allows you to earn tax free interest, while maintaining the ability to transfer in and make unlimited withdrawals, full closure or transfer to another ISA provider at any time.
- Instant ISA Saver: Same features as the Flexiclusive ISA but available to non-Nationwide main current account customers.
- Nationwide also offer a stocks and shares ISA and junior ISA
A Cash ISA works fairly similarly to normal savings accounts offered by a bank or building society, You get the benefit however of earning interest at a tax-free rate up until your maximum allowance, you are only to have one Cash ISA each tax year, however you are allowed to also open a stocks & shares ISA and break your allowance up between the two. Providers tend to offer different choices of Cash ISA such as; Instant Access, Easy Access and Fixed Rate ISAs.
Stocks & Shares ISA’s
Despite being another kind of Individual Savings Account, Stocks and shares ISA’s differ considerable from their cash alternative. A stock and shares ISA is a tax-efficient investment account, you get the option of putting money into different investments such as; funds, trusts and corporate bonds. You don’t pay capital gains tax on gains made within your ISA, but you do on dividends. As this option involves risk, your capital is not protected and if the value of your investments decrease you can end up getting less than you put in.
Young people aged under 18 are permitted to have a Junior ISA. Those aged over 16 may open one themselves or you can open a junior ISA for a child under 16 that you have parental responsibility of. Money placed in either type of junior ISA cannot be withdrawn until on or after their 18th birthday.
Transferring an ISA
Providers of ISA’s have to allow them to be transferred to other providers; however a provider does not have to allow a saver to make a transfer to a new ISA with them. Transferring an ISA can be a good way to ensure you are always getting the best rate, however if your existing ISA has a transfer penalty it can be wise to first work out if, factoring the penalty in, you would stand to earn more by staying with your existing arrangement.