Nationwide has launched a new cash individual savings account (Isa) that aims consistently to beat the rates offered by its competitors. Every month the Champion Isa‘s rate will be recalculated on the basis of the average of the five highest branch-based cash Isa rates on offer from eight other high-street banks.
The rate also includes a 1.35% bonus for the first year, so it should beat all the other rates for at least the first 12 months. To get that rate – currently 2.5%, which shows how poor rates are generally – you need to keep at least £1,000 in the account. You can only make one penalty-free withdrawal each tax year – further withdrawals will be subject to 60 days’ notice or loss of interest. The account accepts Isa transfers.
This isn’t a bad Isa option, as it offers peace of mind that you’ll get a reasonable Isa rate for at least the next 12 months. But it won’t necessarily be a market-beating rate, as the rate excludes web-only accounts and smaller providers. In all, it’s one to consider, but better deals could still emerge before Isa deadline day, so hang on for now.