Nationwide Launches New Competitive Bonds for Existing Customers

15 June 2015

Society re-launches Fixed Rate Bond and e-Bond range with increased rates

Nationwide Building Society is tomorrow (Tuesday 16 June) launching a new fixed rate bond and e-bond aimed at existing customers1. The new Loyalty Bond, fixed for two years, will pay a competitive 2.00% gross p.a./AER, which is 0.20% more than the Society’s new two-year Fixed Rate Bond and e-Bond.

These new products are aimed at existing customers with at least one year’s continuous membership1 with the Society or savers who have a maturing Nationwide Fixed Rate Bond or e-Bond. Savers can open the Fixed Rate Bond version in branch. The e-Bond can be opened via Nationwide’s Internet Bank or via the Society’s popular mobile banking app provided savers have a Nationwide current account. Both can be opened with a minimum balance of £1.

Fixed Rate Bonds

At the same time, Nationwide is re-launching its current Fixed Rate Bond and e-Bond range with new issues that offer savers increased and competitive rates. The new range consists of:

  • Six-month Fixed Rate Bond and e-Bond paying 1.10% gross p.a./AER (increase of 0.10%)
  • One-year Fixed Rate Bond and e-Bond paying 1.65% gross p.a./AER (increase of 0.40%)
  • Two-year Fixed Rate Bond and e-Bond paying 1.80% gross p.a./AER (increase of 0.35%)
  • Three-year Fixed Rate Bond and e-Bond paying 2.00% gross p.a./AER (increase of 0.35%)

One-year Fixed Rate ISA

As a result of the increased rate on the Fixed Rate Bond and e-Bond, Nationwide is launching a new one-year Fixed Rate ISA paying a highly competitive 1.65% AER/tax-free that matches the equivalent one-year Fixed Rate Bond rate.

All of Nationwide’s Fixed Rate Bonds, e-Bonds and Fixed Rate ISAs have monthly interest options available.

Nationwide’s previous range of Fixed Rate Bonds, e-Bonds and its one-year Fixed Rate ISA will be withdrawn from sale at the close of business on Monday 15 June.

Tom Riley, Nationwide’s Head of Savings, comments: “Fixed rate products are ideal for those savers looking to tie up their money for a set period at a rate of interest that won’t change. The launch of our Loyalty Bond and the increased rates on our other fixed rate products demonstrate both our commitment to offering long-term value and our promise to reward existing members with our best rates.”

Notes to Editors

1 The product is only available to individuals who are UK residents and aged 7 or over (for Fixed Rate Bonds) or aged 16 or over (for e-Bonds) and who either:

  • Have been a continuous member of Nationwide (that is a customer with a Nationwide current account, savings account or mortgage) for at least one year immediately prior to account opening; or
  • Hold an existing Fixed Rate Bond or e-Bond and apply for an account as part of the Bond maturity process.

Parity on Fixed Rate Bonds, e-Bonds and Fixed Rate ISAs

As part of the Nationwide Savings Promises, the Society guarantees its Fixed Rate ISA rates will match or beat its equivalent Bond rates.

Early closure

Term of bond Three years Two years One year or less
Loss of interest 270 days 180 days 90 days

Full details of all Nationwide’s savings products can be found on our website.

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.

About Nationwide

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 customers.

Customers can manage their finances in a branch, via the mobile app, on the telephone, internet and post. The Society has around 18,000 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.