Product Update: Bonds and Fixed Rate ISAs

03 May 2013

From today (3 May 2013), Nationwide Building Society is launching new issues of its Fixed Rate Bonds and Fixed Rate ISAs.

The new rates for annual interest are:

  • Six-month Fixed Rate Bond and e-Bond paying 1.25% gross p.a./AER*
  • One-year Fixed Rate Bond, Smart Fixed Rate Bond and e-Bond paying 1.75% gross p.a./AER*
  • Four-year Fixed Rate Bond and e-Bond paying 2.30% gross p.a./AER*
  • One-year Fixed Rate ISA paying 1.75% tax-free/AER*
  • Two-year Fixed Rate ISA paying 2.10% tax-free/AER*
  • Four-year Fixed Rate ISA paying 2.30% tax-free/AER*

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

Two-year Fixed Rate Bond and e-Bonds rates remain unchanged. All other Bonds and Fixed Rate ISAs were withdrawn from sale at the close of business on Thursday 2 May 2013.

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 can be found at: http://www.nationwide.co.uk/savings

  • 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 Four years Three years Two years One year or less
Loss of interest 320 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  • The products may be withdrawn without notice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 all Nationwide Fixed Rate Bonds and e-Bonds are below:

Interest Rates: Fixed Rate Bonds and e-Bonds – correct on Friday 3 May 2013

6-month Fixed Rate Bond & eBond (annual) AER (%) Gross p.a. (%) Net p.a. (%)
£1 + 1.25 1.25 1.00
6-month Fixed Rate Bond & eBond (monthly) AER (%) Gross p.a. (%) Net p.a. (%)
£1 + 1.21 1.20 0.96
 
1-year Fixed Rate Bond,  eBond  & Smart Bond (annual) AER (%) Gross p.a. (%) Net p.a. (%)
£1 + 1.75 1.75 1.40
1-year Fixed Rate Bond, eBond & Smart Bond (monthly) AER (%) Gross p.a. (%) Net p.a. (%)
£1+ 1.71 1.70 1.36
 
2-year Fixed Rate Bond & eBond (annual) AER (%) Gross p.a. (%) Net p.a. (%)
£1 + 2.10 2.10 1.68
2-year Fixed Rate Bond & eBond (monthly) AER (%) Gross p.a. (%) Net p.a. (%)
£1 + 2.07 2.05 1.64
 
4-year Fixed Rate Bond & eBond (annual) AER (%) Gross p.a. (%) Net p.a. (%)
£1 + 2.30 2.30 1.84
4-year Fixed Rate Bond & eBond (monthly) AER (%) Gross p.a. (%) Net p.a. (%)
£1 + 2.27 2.25 1.80

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 all Nationwide Fixed Rate ISAs:

Interest Rates: Fixed Rate ISAs – correct on Friday 3 May 2013

1-year FRISA (annual) AER (%) Tax-Free (%)
£1 + 1.75 1.75
1-year FRISA (monthly) AER (%) Tax-Free (%)
£1 + 1.71 1.70
 
2-year FRISA (annual) AER (%) Tax-Free (%)
£1 + 2.10 2.10
2-year FRISA (monthly) AER (%) Tax-Free (%)
£1 + 2.07 2.05
 
4-year FRISA (annual) AER (%) Tax-Free (%)
£1 + 2.30 2.30
4-year FRISA (monthly) AER (%) Tax-Free (%)
£1 + 2.27 2.25

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 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.