Nationwide launches new bonds and Fixed Rate ISAs

07 September 2012

From today, 7 September 2012, Nationwide Building Society is launching new Fixed Rate Bonds and Fixed Rate ISAs.

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

  • 14-month Fixed Rate Bond and e-Bond paying between 2.45% and 2.70% gross p.a./AER*
  • 14-month Smart Bond paying between 2.45% and 2.70% gross p.a./AER*
  • Nine-month Fixed Rate ISA paying between 2.50% and 2.60% tax-free./AER*
  • 13-Month Fixed Rate ISA paying between 2.80% and 2.90% tax-free/AER*
  • 22-Month Fixed Rate ISA paying between 2.90% and 3.00% tax-free/AER* (available to maturing customers only)

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

The one-year Fixed Rate Bond, e-Bond and Smart Bond, plus six-month Fixed Rate ISA and one-year Fixed Rate ISA were withdrawn from sale at the close of business on Thursday 6 September.

Richard Marriott, Nationwide’s head of savings, said: “In recent weeks, there has been a lot of volatility in the savings market. If savers want to guarantee the rate they are receiving on their money then a fixed rate bond or ISA could be an option.

“Unlike some other providers, Nationwide guarantees that its Fixed Rate ISAs will match or beat the rates offered on our equivalent Fixed Rate Bond accounts meaning savers can make the most of their ISA tax-relief. “

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 guaranteed to match or beat the equivalent bond rate.

  • 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  • The products may be withdrawn without notice.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.
  • 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 7 September 2012

14-month Fixed Rate Bond/ eBond and Smart 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%
14-month Fixed Rate Bond/ eBond and Smart 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%

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 7 September 2012

Nine-month FRISA (annual) AER Tax-free
£25,000 + 2.61% 2.60%
£1 - £24,999 2.51% 2.50%
Nine-month FRISA (monthly) AER Tax-free
£25,000 + 2.58% 2.55%
£1 - £24,999 2.48% 2.45%
13-month FRISA (annual) AER Tax-free
£25,000 + 2.90% 2.90%
£1 - £24,999 2.80% 2.80%
13-month FRISA (monthly) AER Tax-free
£25,000 + 2.89% 2.85%
£1 - £24,999 2.78% 2.75%
22-month FRISA (annual) – maturing customers only AER Tax-free
£25,000 + 3.00% 3.00%
£1 - £24,999 2.90% 2.90%
22-month FRISA (monthly) – maturing customers only AER Tax-free
£25,000 + 2.99% 2.95%
£1 - £24,999 2.89% 2.85%

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.