Product Update: Bonds and Fixed Rate ISAs

Product Update: Bonds and Fixed Rate ISAs

26 October 2012

From today (26 October 2012), Nationwide Building Society is launching new issues of its Fixed Rate Bonds and Fixed Rate ISAs.

The new rates for annual interest, depending on the balance of the account, are:

  • Six-month Fixed Rate Bond and e-Bond paying between 1.76% and 2.01% AER* (1.75% and 2.00% gross p.a.)
  • 14-month Fixed Rate Bond, Smart Fixed Rate Bond and e-Bond paying between 2.25% and 2.50% gross p.a./AER*
  • Two-year Fixed Rate Bond paying between 2.45% and 2.70% gross p.a./AER* (available to maturing customers only)
  • Three-year Fixed Rate Bond paying between 2.55% and 2.80% gross p.a./AER* (available to maturing customers only)
  • Nine-month Fixed Rate ISA paying between 2.00% and 2.26% AER* (2.00% and 2.25% tax-free)
  • 13-month Fixed Rate ISA paying between 2.25% and 2.50% tax-free/AER*
  • 22-month Fixed Rate ISA paying between 2.45% and 2.70% tax-free/AER* (available to maturing customers only)

Monthly interest options are also available for all Nationwide’s Bonds and Fixed Rate ISAs.

All other Bonds and Fixed Rate ISAs were withdrawn from sale at the close of business on Thursday 25 October.

Notes to editors:

* AER stands for Annual Equivalent Rate and illustrates what the interest rate would be if interest were paid and compounded once each year.  The gross rate of interest is the interest rate payable before any income tax is deducted (if customers do pay tax). 

Tax-free is the contractual rate of interest payable where interest is exempt from income tax.

Parity on Fixed Rate Bonds and Fixed Rate ISAs
As part of the Nationwide Savings Promises, where the Society has a Fixed Rate ISA for the same term as a Fixed Rate Bond, the ISA gross rate and AER are guaranteed to match or beat the equivalent bond rate.

Further details on all Nationwide’s Savings Promises can be found at: http://www.nationwide.co.uk/savings

  • Applications are required for all products.  Further details of terms and conditions available on request.

Opening accounts:

  • Fixed Rate Bonds and Fixed Rate ISAs are available from Nationwide branches. eBonds are available from www.nationwide.co.uk.
Early closure
Term of bond Three years Two years One year or less
Loss of interest 270 days 180 days 90 days

If the term includes part of a year, the early access charge will be calculated based on the next whole year e.g. 14-month term = the two-year early access charge.

Fixed Rate Bonds:

  • The products may be withdrawn without notice.
  • No part withdrawals allowed.
  • Minimum investment £1
  • Maximum investment £5 million

Details of the rates on all Nationwide Fixed Rate Bonds are below:

Interest Rates: Fixed Rate Bonds – correct on Friday 26 October 2012

6-month Fixed Rate Bond & eBond (annual) AER (%) Gross p.a. (%) Net (%)
£1 - £9,999 1.76 1.75 1.40
£10,000 - £24,999 1.81 1.80 1.44
£25,000 - £49,999 1.91 1.90 1.52
£50,000 + 2.01 2.00 1.60
6-month Fixed Rate Bond & eBond  (monthly) AER (%) Gross p.a. (%) Net (%)
£1 - £9,999 1.71 1.70 1.36
£10,000 - £24,999 1.76 1.75 1.40
£25,000 - £49,999 1.87 1.85 1.48
£50,000 + 1.97 1.95 1.56
       
14-month Fixed Rate Bond,  eBond  & Smart Bond (annual) AER (%) Gross p.a. (%) Net (%)
£1 - £9,999 2.25 2.25 1.80
£10,000 - £24,999 2.30 2.30 1.84
£25,000 - £49,999 2.40 2.40 1.92
£50,000 + 2.50 2.50 2.00
14-month Fixed Rate Bond,  eBond  & Smart Bond (monthly) AER (%) Gross p.a. (%) Net (%)
£1 - £9,999 2.22 2.20 1.76
£10,000 - £24,999 2.27 2.25 1.80
£25,000 - £49,999 2.38 2.35 1.88
£50,000 + 2.48 2.45 1.96
       
2-year Fixed Rate Bond –  maturing customers only (annual) AER (%) Gross p.a. (%) Net (%)
£1 - £9,999 2.45 2.45 1.96
£10,000 - £24,999 2.50 2.50 2.00
£25,000 - £49,999 2.60 2.60 2.08
£50,000 + 2.70 2.70 2.16
2-year Fixed Rate Bond –  maturing customers only (monthly) AER (%) Gross p.a. (%) Net (%)
£1 - £9,999 2.43 2.40 1.92
£10,000 - £24,999 2.48 2.45 1.96
£25,000 - £49,999 2.58 2.55 2.04
£50,000 + 2.68 2.65 2.12
       
3-year Fixed Rate Bond –  maturing customers only (annual) AER (%) Gross p.a. (%) Net (%)
£1 - £9,999 2.55 2.55 2.04
£10,000 - £24,999 2.60 2.60 2.08
£25,000 - £49,999 2.70 2.70 2.16
£50,000 + 2.80 2.80 2.24
3-year Fixed Rate Bond –  maturing customers only (monthly) AER (%) Gross p.a. (%) Net (%)
£1 - £9,999 2.53 2.50 2.00
£10,000 - £24,999 2.58 2.55 2.04
£25,000 - £49,999 2.68 2.65 2.12
£50,000 + 2.78 2.75 2.20

Fixed Rate ISAs:

  • The products may be withdrawn without notice.
  • No part withdrawals allowed.
  • Minimum investment £1

 

Details of the rates on all Nationwide Fixed Rate ISAs:

Interest Rates: Fixed Rate ISAs – correct on Friday 26 October 2012

9-month FRISA (annual) AER (%) Tax-Free (%)
£1 - £9,999 2.00 2.00
£10,000 - £24,999 2.06 2.05
£25,000 - £49,999 2.16 2.15
£50,000 + 2.26 2.25
9-month FRISA (monthly) AER (%) Tax-Free (%)
£1 - £9,999 1.97 1.95
£10,000 - £24,999 2.02 2.00
£25,000 - £49,999 2.12 2.10
£50,000 + 2.22 2.20
     
13-month FRISA (annual) AER (%) Tax-Free (%)
£1 - £9,999 2.25 2.25
£10,000 - £24,999 2.30 2.30
£25,000 - £49,999 2.40 2.40
£50,000 + 2.50 2.50
13-month FRISA (monthly) AER (%) Tax-Free (%)
£1 - £9,999 2.22 2.20
£10,000 - £24,999 2.27 2.25
£25,000 - £49,999 2.38 2.35
£50,000 + 2.48 2.45
     
22-month FRISA  - maturing customers only (annual) AER (%) Tax-Free (%)
£1 - £9,999 2.45 2.45
£10,000 - £24,999 2.50 2.50
£25,000 - £49,999 2.60 2.60
£50,000 + 2.70 2.70
22-month FRISA – maturing customers only (monthly) AER (%) Tax-Free (%)
£1 - £9,999 2.43 2.40
£10,000 - £24,999 2.48 2.45
£25,000 - £49,999 2.58 2.55
£50,000 + 2.68 2.65

About Nationwide Building Society

Nationwide is the world's largest building society as well as the second largest savings provider and a top-three provider of mortgages in the UK. It is also a major provider of current accounts, credit cards, ISAs and personal loans. Nationwide has around 15 million customers.

Customers can manage their finances in a branch, on the telephone, internet and post.  The Society has around 16,000 employees.  Nationwide's head office is in Swindon with administration centres based in Northampton, Bournemouth and Dunfermline.  The Society also has a number of call centres across the UK.

Please note: If you are a customer looking for information on our products and services, please visit the main website.