Nationwide increases rates on six-month and one-year Fixed Rate Bonds

Plus launches new two and three-year Bonds for maturing customers

03 August 2012

From today, Friday 3 August 2012, Nationwide Building Society is raising rates on selected Fixed Rate Bonds and e-Bonds by up to 0.20% and launching a two-year and three-year Fixed Rate Bond, available to maturing fixed rate bond customers only.

The new rates for annual interest will be between:

  • 2.01% and 2.26% AER* (2.00% and 2.25% gross p.a.) on the six-month Fixed Rate Bond and six-month e-Bond
  • 2.45% and 2.70% gross p.a./AER* on the one-year Fixed Rate Bond, one-year e-Bond and one-year SMART Fixed Rate Bond
  • 2.65% and 2.90% gross p.a./AER* on the two-year Fixed Rate Bond (available to maturing Fixed Rate Bond customers only)
  • 2.85% and 3.00% gross p.a./AER* on the three-year Fixed Rate Bond (available to maturing Fixed Rate Bond customers only)

The minimum opening balance on all Bond accounts is £1. The rate paid on all of the above Bonds depends on the balance of the account. All the rates noted are for annual interest. Monthly interest options are also available on all Nationwide Bonds.

Richard Marriott, Nationwide's Head of Savings, said: "Nationwide's interest rate increase on its six-month and one-year Fixed Rate Bonds is good news for savers who are looking for a guaranteed rate of return in the continued low interest rate environment."

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).

  • 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.
  Early closure
Term of bond Three years Two years One year or less
Loss of interest 270 days 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  • The products may be withdrawn without notice.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:

Correct on Friday 3 August 2012

Six-month Fixed Rate Bond and e-Bond (annual) AER Gross p.a. Net p.a.
£50,000+ 2.26% 2.25% 1.80%
£25,000 - £49,999 2.16% 2.15% 1.72%
£10,000 - £24,999 2.06% 2.05% 1.64%

£1 - £9,999

2.01% 2.00% 1.60%
Six-month Fixed Rate Bond and e-Bond (monthly) AER Gross p.a. Net p.a.
£50,000+ 2.22% 2.20% 1.76%
£25,000 - £49,999 2.12% 2.10% 1.68%
£10,000 - £24,999 2.02% 2.00% 1.60%
£1 - £9,999 1.97% 1.95% 1.56%

One-year Fixed Rate Bond, SMART Fixed Rate Bond and e-Bond (annual) AER Gross p.a. Net p.a.
£50,000+ 2.70% 2.70% 2.16%
£25,000 - £49,999 2.60% 2.60% 2.08%
£10,000 - £24,999 2.50% 2.50% 2.00%
£1 - £9,999 2.45% 2.45% 1.96%
One-year Fixed Rate Bond, SMART Fixed Rate Bond and e-Bond (monthly) AER Gross p.a. Net p.a.
£50,000+ 2.68% 2.65% 2.12%
£25,000 - £49,999 2.58% 2.55% 2.04%
£10,000 - £24,999 2.48% 2.45% 1.96%
£1 - £9,999 2.43% 2.40% 1.92%

Two-year Fixed Rate Bond (annual) – maturing customers only 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%
Two-year Fixed Rate Bond (monthly) – maturing customers only 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%

Three-year Fixed Rate Bond (annual) – maturing customers only AER Gross p.a. Net p.a.
£25,000 + 3.00% 3.00% 2.40%
£10,000 - £24,999 2.90% 2.90% 2.32%
£1 - £9,999 2.85% 2.85% 2.28%
Three-year Fixed Rate Bond (monthly) – maturing customers only AER Gross p.a. Net p.a.
£25,000 + 2.99% 2.95% 2.36%
£10,000 - £24,999 2.89% 2.85% 2.28%
£1 - £9,999 2.84% 2.80% 2.24%

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 15,000 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.

Since the credit crunch began in 2007, Nationwide has remained profitable against a very difficult economic environment. In the year ending April 2012, Nationwide made a strong underlying profit of £304 million – up 10% from the previous year.

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