Nationwide drops the rate on its best-buy Flexclusive Isa to 3.5%

By Lee Boyce

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Rate axe: The Flexclusive Isa has dropped down to 3.5%

Rate axe: The Flexclusive Isa has dropped down to 3.5%

Nationwide has sliced the rate of its best-buy Flexclusive Isa by 0.75 percentage points, the day after This is Money warned that the building society was set to do so.

Yesterday, This is Money was contacted by a Nationwide customer who tipped us off that the Flexclusive Isa, which previously had a rate of 4.25 per cent, blowing all other cash Isas out of the water, was set for a rate drop [read more].

Nationwide confirmed yesterday evening that it was set for a rate fall ‘this week’ – but would not reveal how much the change would be by or when it happen.

The change to the rate now makes it the equal best rate cash Isa to two other accounts in our independent savings table, sharing the accolade with the AA Savings Internet Access Isa 3 account [more details] and the Cheshire BS Direct Cash Isa Issue 2 account [more details].

However, the Nationwide Isa doesn't feature in our table as it isn't open to all savers, it's exclusive to Flexaccount customers.

Savers that are not with Nationwide and are looking to transfer from another provider will be better off looking at the Santander 3.3 per cent deal [more details], as neither the AA or Cheshire BS deals accept transfers in.

 

Those early birds that grabbed the Nationwide deal before today will see a larger interest windfall in 12 months’ time.

If you had put the maximum Isa allowance of £5,640 in the account on the old rate, you would end up with £5,884.42 in a years’ time.

On the new rate, you’ll end up with £5,840.60, a difference of over £40, which in a time of low-paying accounts, is a substantial figure.

The Flexclusive Isa Issue 2 is a branch-based cash Isa has the same terms and conditions attached as the previous offer, including it only being available to Nationwide customers with a Flexaccount that has had £750 a month going into it for the last three months [full details].

The Isa includes a 1.5 per cent bonus fixed until November 2013, with a minimum deposit of £1.

 

Here's what other readers have said. Why not add your thoughts, or debate this issue live on our message boards.

The comments below have not been moderated.

Banks pay interest???

Click to rate     Rating   1

Nationwide Sucks!

Click to rate     Rating   (0)

what about an inflation of 3,5%???

Click to rate     Rating   1

Nationwides Big ISA Scams.

Click to rate     Rating   5

withdraw your savings on mass and invest in gold.you will get a better return and show the banks that we can fight back.

Click to rate     Rating   3

I used to get about £50 in interest on my current account with the nationwide when they paid interest, but I remained loyal when others deserted for interest and offers, now they are repaying the loyalty I see nothing wrong with that.

Click to rate     Rating   8

Proves Nationwide 'not on your side', but rather opportunistic. I agree the publicity only helped their dubious and selfish motives.

Click to rate     Rating   3

Why keep harping on about this account? It had multiple hurdles (£750 'loyalty' savings, no transfers in, only valid for this one year etc) that, for most people, it wasn't an issue. Don't even bother giving Nationwide publicity they've not earned.

Click to rate     Rating   5

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