Nationwide Boosts Fixed Rate ISA Rates Again, Hitting 4.70%

The Nationwide fixed rate ISA range has been repriced twice in August 2026, with the building society now offering up to 4.70% AER on its five-year fixed-rate cash ISA and moving shorter-term rates above the levels announced just a fortnight ago.

The second round of changes, effective 26 August, lifted the one-year Fixed Rate Cash ISA to 4.50% and the two-year to 4.55%, both up from the 4.40% and 4.50% rates launched on 14 August. Rates for the three-year (4.65%) and five-year (4.70%) products were left unchanged. The same 26 August update also raised the one-year Fixed Rate Online Bond and one-year Fixed Rate Branch Bond to 4.50%, and the two-year equivalents to 4.55%, replacing the 4.25% and 4.30% rates that had been current for less than two weeks.

Richard Stocker, Nationwide’s head of savings, said: ‘We’re pleased to launch new higher rates on our fixed rate cash ISAs and bonds, while continuing to ensure customers can access the same rates whether they open their account online or in branch. With the UK’s largest branch network, backed by our Branch Promise, we’re committed to ensuring customers who prefer face-to-face service aren’t disadvantaged.’

Where Nationwide’s fixed rate ISA rates stand against the market

The updated rates put Nationwide ahead of the average but short of the specialist best-buy table. According to Moneyfactscompare.co.uk, the average one-year fixed ISA rate has fallen from 4.45% in July 2024 to 3.79% by January 2026, so Nationwide’s current 4.50% one-year rate sits well above the market average. Against market leaders, however, the gap remains: the best available five-year fixed ISA rate is 4.85% from Leek Building Society and Vida Savings, against Nationwide’s 4.70%.

The table below shows the full current Nationwide rate card for both products alongside the equivalent for context.

Sources: Nationwide press releases, 14 and 26 August 2026.

Rachel Springall, finance expert at Moneyfacts, said: ‘While they might not be market-leading rates overall, savers who would prefer to place their cash in a fixed account over the longer term, with a provider that offers an in-branch service, will find them competitively priced against other high street brands.’

What the numbers mean in practice for savers

On a Nationwide Fixed Rate Cash ISA, a £1,000 deposit held for one year would produce an estimated closing balance of £1,044, rising to £1,258.15 over five years, based on figures published on Nationwide’s own product page. Those balances assume no early withdrawal, which would trigger a penalty of between 60 and 300 days’ interest depending on the term, and close the account.

There is a 14-day cooling-off window after opening during which savers can exit penalty-free. Beyond that window, the Fixed Rate Online Bond permits no withdrawals at all. Both products require UK residency; the ISA requires the holder to be 18 or over, while the bond is available from age 16.

Nationwide is the world’s largest building society with over 19 million members, and following its acquisition of Virgin Money UK, it is connected with one in three people in the UK. The society has pledged to keep branches open until at least 2030, and has paid a £100 Fairer Share bonus to eligible current account holders each year since 2023. Those are the intangible benefits that partly explain why many customers accept a modest rate concession relative to the specialist savings market.

One external factor that savers should factor into longer-term ISA planning: from April 2027, the cash ISA subscription limit will fall to £12,000 for those under 65, down from the current position where the full £20,000 annual ISA allowance can be directed into cash. The overall ISA allowance stays at £20,000, but a larger share will have to go into stocks-and-shares or other ISA types. Anyone considering loading up a five-year fixed cash ISA before that deadline closes may find the window to do so at full capacity is shorter than it appears.