Nationwide raises savings rates to as much as 5% on fixed bonds and cash Isas as competition for savers heats up

Nationwide is offering five-year fixed deals at up to 5 per cent, with one-year fixes at 4.75 per cent, two-year deals at 4.85 per cent, and three-year deals at 4.90 per cent. These rates apply equally to Fixed Rate Bonds and Fixed Rate Cash Isas. Richard Stocker, Nationwide's head of savings, says customers can pick whichever term suits them, with fixed savings rates now at their keenest level in nearly three years.

Nationwide guarantees its fixed cash Isa rates will always 'match or beat' its bonds.

Bond interest carries no tax wrapper and can push savers over their allowance, resulting in a tax liability.

Rival Trading 212 now pays 4.83 per cent on its easy-access cash Isa, including a bonus.