Nationwide Building Society has issued a warning to customers and bank account holders over interest on their accounts. The building society, which is rivalled by HSBC UK, Santander, Barclays, Lloyds and more, has urged taxpayers to “check” tax rules on savings interest.
It comes as rates hit 6.5 per cent. With Christmas behind us, as 2025 continues across the nation, Nationwide Building Society is reminding customers of their potential tax liability, the building society has confirmed.
Basic rate taxpayers can earn up to £1,000 in savings interest before being taxed, while higher rate taxpayers have a £500 allowance. Additional rate taxpayers receive no tax-free allowance on their savings interest, under HMRC rules.
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On X, a Nationwide customer recently raised questions about accessing their ISA funds and asked: “I currently have an ISA with you and can add money online to it but I cannot withdraw. The branch have told me there I only way to do that. If I open the current account, can I do that online and do you do a free one?”
The customer said: “Would it be acceptable to do that for the sole purpose of transfer money in and out of a ISA and having access to your higher rate savings accounts , it would not be used for daily transactions.” In reply, Nationwide issued a response.
It stated: “This will be based on your personal savings allowance, which you can check online.” Nationwide then added a link to the building society’s website and went on to add: “The bonds we have available at Nationwide aren’t tax-free, however ISA’s will be.”
Sarah Coles, the head of personal finance at Hargreaves Lansdown, said: “Although savings rates have fallen from the peak, there are a number of accounts offering just shy of 5 per cent. It means many more people worrying about tax on savings, which has pushed cash ISAs up the agenda for millions of savers.”