Product Update: Bonds and Fixed Rate Cash ISAs

08 November 2013

On 8 November 2013, Nationwide Building Society is launching new issues of its Fixed Rate Bonds and Fixed Rate Cash ISAs.

The new rates for annual interest are:

  • Six-month Fixed Rate Bond and e-Bond paying 1.10% gross p.a./AER*
  • One-year Fixed Rate Bond, Smart Fixed Rate Bond and e-Bond paying 1.40% gross p.a./AER*
  • One-year Fixed Rate ISA paying 1.50% tax-free/AER*

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

All current issues of Six-month, One-year and Four-year Fixed Rate Bonds, e-Bonds and One-year and Four-year Fixed Rate ISAs, were withdrawn from sale at the close of business on 7 November 2013. All other Bonds and FRISAs remain unchanged.

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).

The net rate of interest is the interest rate payable after 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, we guarantee our Fixed Rate ISA rates will match or beat our equivalent Bond rates.

Further details on all Nationwide's Savings Promises.

Opening accounts:

  • Fixed Rate Bonds and Fixed Rate ISAs are available from Nationwide branches. e-Bonds are available from www.nationwide.co.uk.
Early closure
​Term of bond Five years Three years Two years One year or less
Loss of interest 365 days 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  • The products may be withdrawn without notice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 Nationwide’s new Fixed Rate Bonds and e-Bonds – correct on 8 November 2013, are below:

​6-month Fixed Rate Bond & e-Bond (on maturity) AER (%) Gross p.a. (%) Net (%)
£1 + 1.10 1.10 0.88
​6-month Fixed Rate Bond & e-Bond (monthly) AER (%) Gross p.a. (%) Net (%)
£1 + 1.06 1.05 0.84
​1-year Fixed Rate Bond,  e-Bond  & Smart Bond (annual) AER (%) Gross p.a. (%) Net (%)
£1 + 1.40 1.40 1.12
​1-year Fixed Rate Bond,  e-Bond  & Smart Bond (monthly) AER (%) Gross p.a. (%) Net (%)
£1 + 1.36 1.35 1.08

Fixed Rate ISAs:

  • The products may be withdrawn without notice
  • No part withdrawals allowed
  • Minimum investment £1
  • Transfers In allowed
  • Maximum investment subject to the annual ISA allowance

Details of the rates on Nationwide’s new Fixed Rate ISAs – correct on 8 November 2013, are below:

1-year FRISA (annual) AER (%) Tax-Free (%)
£1 + 1.50 1.50
​1-year FRISA (monthly) AER (%) Tax-Free (%)
£1 + 1.46 1.45

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.

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.

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