Nationwide has made changes to ISA accounts (Image: Getty)
Savers with Nationwide have been told about some changes gto key accounts. The high street chain said it has introduced new one and two-year Fixed Rate Cash ISAs and Fixed Rate Bonds with higher rates.
The new rates have come into action now, the chain with 696-branches has announced. Richard Stocker, Nationwide’s Head of Savings, said: “We’re pleased to be increasing rates on our one and two-year Fixed Rate Bonds and Fixed Rate Cash ISAs for the second time this month. These products are ideal for those looking to put money away for a shorter period while benefiting from the certainty of a guaranteed return. Customers can access the same rates whether they choose to save online or in branch, reflecting our commitment to choice and our Branch Promise, backed by the UK’s largest branch network.”
The new products and rates are:
1 Year Fixed Rate Cash ISA – 4.50% AER/Tax-free (fixed)
2 Year Fixed Rate Cash ISA – 4.55% AER/Tax-free (fixed)
1 Year Fixed Rate Branch Bond – 4.50% AER/gross a year (fixed)
2 Year Fixed Rate Branch Bond – 4.55% AER/gross a year (fixed)
1 Year Fixed Rate Online Bond – 4.50% AER/gross a year (fixed)
2 Year Fixed Rate Online Bond – 4.55% AER/gross a year (fixed)
A fixed rate cash ISA is a tax-free savings account. You lock your money away for a set amount of time and get a guaranteed interest rate. A fixed rate bond is a type of savings account offered by banks and building societies where you lock away a lump sum of money for a set period at a guaranteed, unchanging interest rate.
The changes come as families are under more pressure. Parents face a £15,500-plus bill for the hidden costs of sending a child to school from Reception through to GCSEs, new research has revealed.
And the biggest drain on family finances is not uniforms or school trips – but the growing cost of after-school clubs. Research commissioned by Nationwide found parents spend an average £700 a year on clubs and associated costs, compared with £381 on uniform and sports kit and £116 on school trips. Over a child’s school career, that means clubs alone could swallow around £9,100.
The figures come as families prepare for the new school year, with almost half of parents – 49% – saying they feel stressed about the cost of going back to school. Many are being forced to make difficult choices, including cutting spending on eating out, holidays and even savings.
- Annual – School career
- School clubs. £700 – £9,100
- Uniform & sports kit. £381 – £4,953
- School trips. £116. – £1,508
Total. £1,197 – £15,561
Clubs are becoming an increasingly important part of family life. Some 36% of children attend an average of around two different clubs during the academic year, with parents paying about £11 per session.
And for some working parents, they are not simply about hobbies. Nearly a quarter – 22% – say they rely on school clubs to cover childcare gaps.
Almost half, 45%, say they pay for clubs to help their children develop skills outside the curriculum, while the same proportion say they support a child’s passion for a particular activity. Football is the most popular choice, followed by swimming, creative activities and dance.
Uniforms may not be the biggest expense, but the costs can still mount up alarmingly. Nationwide’s research suggests parents spend an average £381 a year on uniform and sports kit.
They also report replacing around 25 items each year, with children losing, damaging or wearing them out. Over the course of a school career, that works out at around 325 items.
The most expensive items include:
- School shoes – £43
- PE trainers -£42
- Blazer – £37
- Tracksuit – £29
Some parents are paying even more, with 12% spending more than £76 on PE trainers.
And then there are school trips. Almost every child – 98% – attends at least one day trip during the year, while around half go on a residential trip. Of those taking residential trips, 49% of parents spend more than £100 per child.
Despite the squeeze, parents are trying a range of ways to bring the bill down. The most common tactic is looking for sales and discounts, used by 43% of parents.
Fred Powell, Head of Current Accounts at Nationwide, said: “Our research confirms what many families already know: back-to-school costs can quickly add up. Clubs and trips all play an important role in a child’s school experience, helping them learn new skills, build confidence and make new friends and also help cover childcare gaps.
“There of course there is the school uniform! With these costs adding up over the years, it’s encouraging to see we are nation of savvy savers finding practical ways to save money, from shopping around and buying in sales to choosing bigger sized uniform items that last longer.
“Our new calculator with Finder, alongside the budgeting tools in our app and support from our colleagues, can help families understand and manage the costs of the new school year.”
Leave a comment