From today (11 January 2013), Nationwide Building Society is launching new issues of its Fixed Rate Bonds and Fixed Rate ISAs.
The new rates for annual interest, depending on the balance of the account, are:
- Six-month Fixed Rate Bond and e-Bond paying 1.51% AER* (1.50% gross p.a.)
- One-year Fixed Rate Bond, Smart Fixed Rate Bond and e-Bond paying 2.00% gross p.a./AER*
- Two-year Fixed Rate Bond and e-Bond paying 2.10% gross p.a./AER*
- Three-year Fixed Rate Bond and e-Bond paying 2.25% gross p.a./AER*
- Six-month Fixed Rate ISA paying 1.51% AER* (1.50% tax-free)
- One-year Fixed Rate ISA paying 2.05% tax-free/AER*
- Two-year Fixed Rate ISA paying 2.25% tax-free/AER*
Monthly interest options are also available for all Nationwide’s Bonds and Fixed Rate ISAs.
All other Bonds and Fixed Rate ISAs were withdrawn from sale at the close of business on Thursday 10 January.
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
As part of the Nationwide Savings Promises, where the Society 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.
Further details on all Nationwide’s Savings Promises can be found at: http://www.nationwide.co.uk/savings/savingspromises/default.htm
- 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 |
Three years |
Two years |
One year or less |
| Loss of interest |
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- The products may be withdrawn without notice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 are below:
Interest Rates: Fixed Rate Bonds – correct on Friday 11 January 2013
| 6-month Fixed Rate Bond & eBond (annual) |
AER (%) |
Gross p.a. (%) |
Net (%) |
| £1 + |
1.51 |
1.50 |
1.20 |
| 6-month Fixed Rate Bond & eBond (monthly) |
AER (%) |
Gross p.a. (%) |
Net (%) |
| £1 + |
1.46 |
1.45 |
1.16 |
| |
|
|
|
| 1-year Fixed Rate Bond, eBond & Smart Bond (annual) |
AER (%) |
Gross p.a. (%) |
Net (%) |
| £1 + |
2.00 |
2.00 |
1.60 |
| 1-year Fixed Rate Bond, eBond & Smart Bond (monthly) |
AER (%) |
Gross p.a. (%) |
Net (%) |
| £1+ |
1.97 |
1.95 |
1.56 |
| |
|
|
|
| 2-year Fixed Rate Bond & eBond (annual) |
AER (%) |
Gross p.a. (%) |
Net (%) |
| £1 + |
2.10 |
2.10 |
1.68 |
| 2-year Fixed Rate Bond & eBond (monthly) |
AER (%) |
Gross p.a. (%) |
Net (%) |
| £1 + |
2.07 |
2.05 |
1.64 |
| |
|
|
|
| 3-year Fixed Rate Bond & eBond (annual) |
AER (%) |
Gross p.a. (%) |
Net (%) |
| £1 + |
2.25 |
2.25 |
1.80 |
| 3-year Fixed Rate Bond & eBond (monthly) |
AER (%) |
Gross p.a. (%) |
Net (%) |
| £1 + |
2.22 |
2.20 |
1.76 |
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 11 January 2013
| 6-month FRISA (annual) |
AER (%) |
Tax-Free (%) |
| £1 + |
1.51 |
1.50 |
| 6-month FRISA (monthly) |
AER (%) |
Tax-Free (%) |
| £1 + |
1.46 |
1.45 |
| |
|
|
| 1-year FRISA (annual) |
AER (%) |
Tax-Free (%) |
| £1 + |
2.05 |
2.05 |
| 1-year FRISA (monthly) |
AER (%) |
Tax-Free (%) |
| £1 + |
2.02 |
2.00 |
| |
|
|
| 2-year FRISA (annual) |
AER (%) |
Tax-Free (%) |
| £1 + |
2.25 |
2.25 |
| 2-year FRISA (monthly) |
AER (%) |
Tax-Free (%) |
| £1 + |
2.22 |
2.20 |
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 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.