Written by Karen Bryan
Update 17 March 2014 – The current Nationwide Flexclusive Cash ISA pays a variable rate of 1.75%. Nationwide appear to have dropped the previous fixed rate introductory bonus by opting for a totally variable rate.
Update 13 November 2013 – Issue 6 of the Nationwide Flexclusive Cash ISA pays a fixed introductory bonus of 0.75% until 31 January 2015, plus an underlying variable rate of 1%, equating to a total interest rate of 1.75%.
Update 17 September 2013 – Issue 5 of the Nationwide Flexclusive launched today. The fixed introductory bonus payable until 31 December 2014 has dropped from 0.85% paid on the previous issue, to 0.6%. The underlying variable rate remains at 1.40%, meaning a current interest rate of 2.0%
The Nationwide Flexclusive Cash ISA is currently (23 August 2013) paying an interest rate of 2.25%, made up of a 1.4% variable underlying rate and a 0.85% fixed rate introductory bonus paid until 31 December 2014.. It’s an instant access account but, as is the case with all Cash ISA accounts, if you withdraw any money, you can’t then top it up again to the annual Cash ISA limit.
A downside is that you can’t make transfers into the Nationwide Flexclusive Cash ISA account; it’s only open for new subscriptions for the current year’s annual alllowance.
However, this account is only available to holders of a Flex current account who’ve paid in at least £750 for the previous three months, or Nationwide Flex Direct and Nationwide Flex Plus account holders.
At 2.25%, the Nationwide Flexclusive Cash ISA is offering a ompetitive rate for an instant access Cash ISA. The highest paying open-to-all option is a Tesco Instant Access Cash ISA, currently paying 2%.
A fixed rate Cash ISA account would offer a guaranteed return, compared to the flexible rate constituent on the Nationwide Flexclusive Cash ISA. The highest rate I could find for a one year fixed rate Cash ISA is 2.35% with Britannia, available to Co-op banking group customers only. The highest rate open-to-all one year fixed rate Cash ISA is from Tesco paying 2.05%.
I’ve already put this year’s Cash ISA allowance into a fixed rate three year account with the Halifax paying 3%. If I hadn’t, I’d be tempted to put the allowance into the Nationwide Flexclusive Cash ISA (I have a qualifying Flex Direct current account). As Flexclusive is an instant access account, I could withdraw the money to put in a new Cash ISA account paying a better rate, if interest rates increased before the 0.85 fixed rate bonus paid on the Flexclusive expires on 31 December 2014.
Interest rates correct on 23 August 2013.