Product update: Bonds

07 February 2012

Nationwide Building Society is making some changes to its Bonds range. All changes come into effect from today, Tuesday 7th February.

The new rates for annual interest on balances of £1 or more are:

  • Six-month Fixed Rate Bond and e-Bond paying between 2.15% and 2.40% gross p.a. (2.16% and 2.41% AER*) depending on the balance of the account.
  • One-year Fixed Rate Bond, Smart Bond and e-Bond paying between 2.65% and 2.90% gross p.a./AER* depending on the balance of the account.
  • Two-year Fixed Rate Bond (available to maturing customers only) paying between 3.05% and 3.30% gross p.a./AER* depending on the balance.

Nationwide’s previous range of Fixed Rate Bonds, e-Bonds and Smart Bond were withdrawn from sale at the close of business on Monday 6th February.

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

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). 

Parity on Fixed Rate Bonds and Fixed Rate ISAs
Where Nationwide has a Fixed Rate ISA for the same term as a Fixed Rate Bond, the ISA gross rate and AER are equal to the Bond with an equivalent term.

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

Opening accounts:

  • Fixed Rate Bonds are available from Nationwide branches or by ringing 0800 302010.
Early closure
Term of bond Two years One year or less
Loss of interest 180 days 90 days

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

Interest Rates: Fixed Rate Bonds - correct on 7 February 2012

Six-month Fixed Rate Bond (annual) AER Gross p.a. Net p.a.
£50,000+ 2.41% 2.40% 1.92%
£25,000 - £49,999 2.31% 2.30% 1.84%
£10,000 - £24,999 2.21% 2.20% 1.76%
£1 - £9,999 2.16% 2.15% 1.72%
Six-month Fixed Rate Bond (monthly) AER Gross p.a. Net p.a.
£50,000+ 2.38% 2.35% 1.88%
£25,000 - £49,999 2.27% 2.25% 1.80%
£10,000 - £24,999 2.17% 2.15% 1.72%
£1 - £9,999 2.12% 2.10% 1.68%
One-year Fixed Rate Bond (annual) AER Gross p.a. Net p.a.
£50,000+ 2.90% 2.90% 2.32%
£25,000 - £49,999 2.80% 2.80% 2.24%
£10,000 - £24,999 2.70% 2.70% 2.16%
£1 - £9,999 2.65% 2.65% 2.12%
One-year Fixed Rate Bond (monthly) AER Gross p.a. Net p.a.
£50,000+ 2.89% 2.85% 2.28%
£25,000 - £49,999 2.78% 2.75% 2.20%
£10,000 - £24,999 2.68% 2.65% 2.12%
£1 - £9,999 2.63% 2.60% 2.08%
Two-year Fixed Rate Bond (annual) – FOR MATURING CUSTOMERS ONLY AER Gross p.a. Net p.a.
£50,000+ 3.30% 3.30% 2.64%
£25,000 - £49,999 3.20% 3.20% 2.56%
£10,000 - £24,999 3.10% 3.10% 2.48%
£1 - £9,999 3.05% 3.05% 2.44%
Two-year Fixed Rate Bond (monthly) – FOR MATURING CUSTOMERS ONLY AER Gross p.a. Net p.a.
£50,000+ 3.30% 3.25% 2.60%
£25,000 - £49,999 3.20% 3.15% 2.52%
£10,000 - £24,999 3.09% 3.05% 2.44%
£1 - £9,999 3.04% 3.00% 2.40%

Interest Rates: Smart Bond - correct on 7 February 2012

One-year Smart Bond (annual) AER Gross p.a. Net p.a.
£50,000+ 2.90% 2.90% 2.32%
£25,000 - £49,999 2.80% 2.80% 2.24%
£10,000 - £24,999 2.70% 2.70% 2.16%
£1 - £9,999 2.65% 2.65% 2.12%
One-year Smart Bond (monthly) AER Gross p.a. Net p.a.
£50,000+ 2.89% 2.85% 2.28%
£25,000 - £49,999 2.78% 2.75% 2.20%
£10,000 - £24,999 2.68% 2.65% 2.12%
£1 - £9,999 2.63% 2.60% 2.08%

Interest Rates: e-Bonds - correct on 7 February 2012

Six-month e-Bond (annual) AER Gross p.a. Net p.a.
£50,000+ 2.41% 2.40% 1.92%
£25,000 - £49,999 2.31% 2.30% 1.84%
£10,000 - £24,999 2.21% 2.20% 1.76%
£1 - £9,999 2.16% 2.15% 1.72%
Six-month e-Bond (monthly) AER Gross p.a. Net p.a.
£50,000+ 2.38% 2.35% 1.88%
£25,000 - £49,999 2.27% 2.25% 1.80%
£10,000 - £24,999 2.17% 2.15% 1.72%
£1 - £9,999 2.12% 2.10% 1.68%
One-year e-Bond (annual) AER Gross p.a. Net p.a.
£50,000+ 2.90% 2.90% 2.32%
£25,000 - £49,999 2.80% 2.80% 2.24%
£10,000 - £24,999 2.70% 2.70% 2.16%
£1 - £9,999 2.65% 2.65% 2.12%
One-year e-Bond (monthly) AER Gross p.a. Net p.a.
£50,000+ 2.89% 2.85% 2.28%
£25,000 - £49,999 2.78% 2.75% 2.20%
£10,000 - £24,999 2.68% 2.65% 2.12%
£1 - £9,999 2.63% 2.60% 2.08%

About Nationwide Building Society
Nationwide is the world's largest building society as well as one of the largest savings providers 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 members.

Since the credit crunch began in 2007, Nationwide has remained profitable against a very difficult economic environment.  In the half year ending September 2011 Nationwide made a strong underlying profit of £172 million – up 17% from the previous year.  Its strong financial performance and prudent business model means that Nationwide is included in Global Finance magazine’s Top 50 Safest Banks in the World.

Nationwide has around 700 branches and customers can manage their finances in 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.