Nationwide customers could bag themselves hundreds of pounds of extra cash this year. Households aiming to build up their savings are being advised to shop around for accounts with the best interest rates.
And one of popular building society Nationwide’s best accounts is the one-year fixed rate cash ISA. It comes with a competitive 4.1% interest rate and allows customers to lock away a lump sum for 12 months to build up interest.
Experts say many people have set a savings goal of £5,000 this year. Those who have that amount to put straight into the account would make themselves an extra £205 at the end of 2025 in 12 months’ time.
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Many people stick with savings accounts for years despite them having poor interest rates. This means they make hardly any extra money on their savings.
Aaron Peak, personal finance expert at CredAbility, said: “Don’t let your cash sit in an account earning little to no interest. Instead, shop around for the best deals on regular savers, ISAs, or easy-access accounts. Even if you can only save £50 a month in an ISA, that’s better than nothing. The key is to automate these savings – set up a standing order for the day after payday, before you have a chance to spend the money.”
William Bergmar, finance editor at Credwise, issued further savings advice: “Saving £5,000 by the end of 2025 is a challenging but achievable goal for many Brits. The key is to combine consistent saving habits with smart financial decisions.
“Start by setting up automatic transfers to your savings or ISA account, aiming for at least £200 monthly. Then, focus on optimizing your daily expenses and embracing cost-effective alternatives.”