Nationwide launches new Bonds and Fixed Rate Cash ISAs

17 September 2013

Nationwide Building Society has launched new Fixed Rate Bonds, eBonds and Fixed Rate ISAs paying the highest rates available from major high street providers¹.

The new rates for annual interest are:

  • Four-year Fixed Rate Bond and e-Bond paying 2.40% gross p.a./AER*
  • Five-year Fixed Rate Bond and e-Bond paying 2.50% gross p.a./AER*
  • Four-year Fixed Rate ISA paying 2.40% tax-free/AER*
  • Five-year Fixed Rate ISA paying 2.50% tax-free/AER*

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

Darren Bailey, Nationwide’s head of savings pricing, said: “Nationwide’s new Fixed Rate Bonds and ISAs beat the rates offered by other major high-street competitors.

“If savers don’t need instant access then a longer term Fixed Rate Bond or Fixed Rate ISA may be a way for them to earn a higher rate of interest on their money.

“Our new Fixed Rate ISAs accept transfers in, allowing customers to earn the competitive rate of interest on any previous years’ allowances. Those customers who do transfer to the Society will benefit from our promise to pay interest from the day we receive their application**, meaning they won’t lose out on valuable interest as the switch goes through.

“The market remains challenging for savers, but Nationwide continues to offer a range of products to suit the different needs of savers.”

Notes to editors:

¹This includes Barclays, Halifax, HSBC, Lloyds Bank, Natwest, RBS and Santander.

* 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.

**Provided your funds are free to move and not subject to any notice period.

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

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 - correct on Tuesday 17 September 2013, are below:

4-year Fixed Rate Bond, eBond & Smart Bond (annual) AER (%) Gross p.a. (%) Net (%)

£1 +

2.40

2.40

1.92

4-year Fixed Rate Bond, eBond & Smart Bond (monthly) AER (%) Gross p.a. (%) Net (%)

£1+

2.38

2.35

1.88

5-year Fixed Rate Bond & eBond (annual) AER (%) Gross p.a. (%) Net (%)

£1 +

2.50

2.50

2.00

5-year Fixed Rate Bond & eBond (monthly) AER (%) Gross p.a. (%) Net (%)

£1 +

2.48

2.45

1.96


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 - correct on Tuesday 17 September 2013, are below:

4-year FRISA (annual) AER (%) Tax-Free (%)

£1 +

2.40

2.40

4-year FRISA (monthly) AER (%) Tax-Free (%)

£1 +

2.38

2.35

5-year FRISA (annual) AER (%) Tax-Free (%)

£1 +

2.50

2.50

5-year FRISA (monthly) AER (%) Tax-Free (%)

£1 +

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.

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.