Product Update: Nationwide Bonds and Fixed Rate Cash ISAs

22 June 2012

From today, 22 June 2012, Nationwide Building Society is launching new issues of selected 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 1.85% and 2.10% gross p.a./AER*
  • One-year Fixed Rate Bond and e-Bond paying between 2.25% and 2.50% gross p.a./AER*
  • One-year Smart Bond Fixed Rate paying between 2.25% and 2.50% gross p.a./AER*
  • Six-Month Fixed Rate ISA paying between 2.25% and 2.50% tax-free (2.26% to 2.52% AER*)
  • One-year Fixed Rate ISA paying between 2.50% and 2.75% tax-free/AER*

Nationwide’s previous range of Fixed Rate Bonds, e-Bonds and Fixed Rate ISAs were withdrawn from sale at the close of business on Thursday 21 June 2012.

Two-year Fixed Rate Bond, 14-month Fixed Rate ISA and 18-month Fixed Rate ISA were also withdrawn from sale.

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). 

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

Fixed Rate Bonds:

  • The products may be withdrawn without notice.
  • No part withdrawals allowed.

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

Interest Rates: Fixed Rate Bonds – correct on Friday 22 June 2012

Six-month Fixed Rate Bond (annual) AER Gross p.a. Net p.a.
£50,000+ 2.11% 2.10% 1.68%
£25,000 - £49,999 2.01% 2.00% 1.60%
£10,000 - £24,999 1.91% 1.90% 1.52%
£1 - £9,999 1.86% 1.85% 1.48%
Six-month Fixed Rate Bond (monthly) AER Gross p.a. Net p.a.
£50,000+ 2.07% 2.05% 1.64%
£25,000 - £49,999 1.97% 1.95% 1.56%
£10,000 - £24,999 1.87% 1.85% 1.48%
£1 - £9,999 1.81% 1.80% 1.44%

One-year Fixed Rate Bond (annual) AER Gross p.a. Net p.a.
£50,000+ 2.50% 2.50% 2.00%
£25,000 - £49,999 2.40% 2.40% 1.92%
£10,000 - £24,999 2.30% 2.30% 1.84%
£1 - £9,999 2.25% 2.25% 1.80%
One-year Fixed Rate Bond (monthly) AER Gross p.a. Net p.a.
£50,000+ 2.48% 2.45% 1.96%
£25,000 - £49,999 2.38% 2.35% 1.88%
£10,000 - £24,999 2.27% 2.25% 1.80%
£1 - £9,999 2.22% 2.20% 1.76%

Interest Rates: Smart Fixed Rate Bond – correct on Friday 22 June 2012

One-year Smart Fixed Rate Bond (annual) AER Gross p.a. Net p.a.
£50,000+ 2.50% 2.50% 2.00%
£25,000 - £49,999 2.40% 2.40% 1.92%
£10,000 - £24,999 2.30% 2.30% 1.84%
£1 - £9,999 2.25% 2.25% 1.80%
One-year Smart Fixed Rate Bond (monthly) AER Gross p.a. Net p.a.
£50,000+ 2.48% 2.45% 1.96%
£25,000 - £49,999 2.38% 2.35% 1.88%
£10,000 - £24,999 2.27% 2.25% 1.80%
£1 - £9,999 2.22% 2.20% 1.76%

Interest Rates: e-Bonds – correct on Friday 22 June 2012

Six-month e-Bond (annual) AER Gross p.a. Net p.a.
£50,000+ 2.11% 2.10% 1.68%
£25,000 - £49,999 2.01% 2.00% 1.60%
£10,000 - £24,999 1.91% 1.90% 1.52%
£1 - £9,999 1.86% 1.85% 1.48%
Six-month e-Bond (monthly) AER Gross p.a. Net p.a.
£50,000+ 2.07% 2.05% 1.64%
£25,000 - £49,999 1.97% 1.95% 1.56%
£10,000 - £24,999 1.87% 1.85% 1.48%
£1 - £9,999 1.81% 1.80% 1.44%
One-year e-Bond (annual) AER Gross p.a. Net p.a.
£50,000+ 2.50% 2.50% 2.00%
£25,000 - £49,999 2.40% 2.40% 1.92%
£10,000 - £24,999 2.30% 2.30% 1.84%
£1 - £9,999 2.25% 2.25% 1.80%
One-year e-Bond (annual) AER Gross p.a. Net p.a.
£50,000+ 2.48% 2.45% 1.96%
£25,000 - £49,999 2.38% 2.35% 1.88%
£10,000 - £24,999 2.27% 2.25% 1.80%
£1 - £9,999 2.22% 2.20% 1.76%

Fixed Rate ISAs:

  • The products may be withdrawn without notice.
  • No part withdrawals allowed.

Details of the rates on all Nationwide Fixed Rate ISAs:

Interest Rates: Fixed Rate ISAs – correct on Friday 22 June 2012

Six-month FRISA (annual) AER Tax-free
£50,000+ 2.52% 2.50%
£25,000 - £49,999 2.47% 2.45%
£10,000 - £24,999 2.41% 2.40%
£1 - £9,999 2.26% 2.25%
Six-month FRISA (monthly) AER Tax-free
£50,000+ 2.48% 2.45%
£25,000 - £49,999 2.43% 2.40%
£10,000 - £24,999 2.38% 2.35%
£1 - £9,999 2.22% 2.20%
One-year FRISA (annual) AER Tax-free
£50,000+ 2.75% 2.75%
£25,000 - £49,999 2.70% 2.70%
£10,000 - £24,999 2.65% 2.65%
£1 - £9,999 2.50% 2.50%
One-year FRISA (monthly) AER Tax-free
£50,000+ 2.73% 2.70%
£25,000 - £49,999 2.68% 2.65%
£10,000 - £24,999 2.63% 2.60%
£1 - £9,999 2.48% 2.45%

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. 

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.