Nationwide launches new deals on ISAs

Nationwide has launched new bonus rates for its e-ISA and Champion ISA accounts.

Nationwide has introduced new bonus rates on two of its ISA accounts in order to make the offers more competitive.

The building society's e-ISA overall rate will rise to a market-leading 2.90 per cent per annum gross for balances over £1 across all ISAs opened from the beginning of this month, including a 1.15 per cent gross per annum fixed introductory bonus.

Meanwhile, the Champion ISA will also see its rate rise to 2.70 per cent per annum for balances of more than £1,000.

Nationwide expressed confidence that its packages offer some of the best ISA rates in the industry, which will appeal to those who have not yet used their full allowance for the year.

Robin Bailey, Nationwide's director for savings, said: "As one the country's leading savings providers, Nationwide is committed to looking after its savers and helping them make the most of their savings."

Last month, the firm predicted that UK consumers may begin saving more money as a result of the recent increase in VAT.

the end of 2010 saw an increase in the amount of money being saved with mutuals.

People with savings accounts such as ISAs or fixed bonds at mutuals boosted their combined balances by more than £2 billion at the tail end of 2010, it has been revealed.

According to data published today (February 1st 2011) by the Building Societies Association (BSA), these balances at such institutions rose by £1.5 billion in December of last year, which followed on from an increase of £0.6 billion one month previously.

Brian Morris, head of savings policy at the BSA, commented that this shows mutauls enjoyed a "strong end to the year", but he warned that households across the UK still face a "challenging year ahead", meaning they may be forced to dip into their savings at some point in 2011.

Meanwhile, gross mortgage lending by mutuals slipped slightly from £2 billion in November 2010 to £1.8 billion one month later.

This comes after research by Cheltenham & Gloucester recently showed that many older people are storing cash away for their grandchildren in savings accounts.