Nationwide and HSBC have updated their fixed-rate savings deals, providing more competitive interest rates for customers who prefer to bank with established institutions. These moves come as the savings market continues to offer strong rates.
HSBC has increased the rates on its one and two-year fixed-rate savings accounts. Nationwide has made broader adjustments, boosting rates on four of its fixed-rate savings accounts and introducing four new fixed-rate cash Isas, which allow for tax-free earnings.
The highest rate among Nationwide's new offerings is 4.7 percent on its five-year fixed-rate Isa. While competitive, the top rate for a similar five-year Isa from Vida Savings is 4.85 percent.
Fixed-Rate Isa Comparison
Nationwide's Isas offer a low entry point, with accounts available from just £1. In comparison, the best rates for similar products often require a minimum deposit of £1,000.
| Length of fix | Nationwide rate | Top rate (Vida Savings) | | --- | --- | --- | | 1 year | 4.40% | 4.70% | | 2 years | 4.50% | 4.77% | | 3 years | 4.65% | 4.80% | | 5 years | 4.70% | 4.85% |
These Nationwide Isa accounts permit transfers from other providers. Early withdrawal requires closing the account and incurs a penalty equivalent to 60 days' interest for each year of the fixed term.
Fixed-Rate Bond Comparison
HSBC's fixed-rate accounts require a minimum deposit of £2,000, with a maximum savings limit of £1 million. Nationwide's accounts are accessible with just £1, and customers can deposit up to £5 million.
| Length of fix | HSBC rate | Nationwide rate | Best rate (GB Bank, MBNA, Recognise, Investec) | | --- | --- | --- | --- | | 1 year | 3.80% | 4.25% | 4.85% | | 2 years | 4.40% | 4.30% | 4.86% | | 3 years | N/a | 4.60% | 5% | | 5 years | N/a | 4.65% | 4.98% |
HSBC allows early access by closing the account and paying a charge. Nationwide's fixed-rate bonds do not offer early withdrawal options beyond an initial cancellation period.
These updates from Nationwide and HSBC occur within a broader trend of rising savings rates. Recently, First Active, part of NatWest, introduced a variable rate account paying 4.5 percent, including a 12-month fixed bonus of 1.5 percent. Additionally, the savings app Spring offers a 5 percent variable rate on balances between £10 and £5,000. For easy-access cash Isas, Trading 212 is offering a variable rate of 4.56 percent, which includes a 12-month fixed bonus of 0.96 percent. This account is flexible, allowing money to be withdrawn and replaced within the same tax year without affecting the Isa allowance.
Deposits made with Nationwide and HSBC are protected under the Financial Services Compensation Scheme up to £120,000 per provider. This limit applies to the total funds held with a provider, not per individual account.