Nationwide Building Society is making changes to its range of Fixed Rate, Smart and e-Bonds. All changes come into effect today, Friday 8 March 2013.
The new rates of annual interest are:
- Six-month Fixed Rate Bond and e-Bond paying 1.30% gross p.a./AER*
- One-year Fixed Rate Bond, Smart Bond and e-Bond paying 1.85% gross p.a./AER*
- Four-year Fixed Rate Bond and e-Bond paying 2.40% gross p.a./AER*
The rates on the two-year and three-year Fixed Rate Bond and e-Bond remain the same.
Nationwide's previous six-month and one-year Fixed Rate Bonds, e-Bonds and Smart Bond were withdrawn from sale at the close of business on Thursday 7 March 2013.
Monthly interest options are also available for all Nationwide's Fixed Rate Bonds.
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 payable after any income tax is deducted (if you do pay tax).
Parity on Fixed Rate Bonds and Fixed Rate ISAs
Where Nationwide has a Fixed Rate ISA for the same term as a Fixed Rate Bond, the ISA gross rate and AER are equal to the Bond with an equivalent term.
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 are available from Nationwide branches or by ringing 0800 302010. e-Bonds are available via www.nationwide.co.uk.
You must have a Nationwide current account and be registered for Internet Banking to open an e-bond. Minimum age limits may apply.
Partial withdrawals before the end of the fixed term are not allowed. Early closure will incur a loss of interest:
| 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 |
Details of the rates on all Nationwide Fixed Rate Bonds are below:
Interest Rates: Fixed Rate Bonds - correct on Friday 8 March 2013
| Six-month Fixed Rate Bond and e-Bond (annual) |
AER |
Gross p.a. |
Net p.a. |
| £1+ |
1.30% |
1.30% |
1.04% |
| Six-month Fixed Rate Bond and e-Bond (monthly) |
AER |
Gross p.a. |
Net p.a. |
| £1+ |
1.26% |
1.25% |
1.00% |
| |
| One-year Fixed Rate Bond, e-Bond and Smart Bond (annual) |
AER |
Gross p.a. |
Net p.a. |
| £1+ |
1.85% |
1.85% |
1.48% |
| One-year Fixed Rate Bond, e-Bond and Smart Bond (monthly) |
AER |
Gross p.a. |
Net p.a. |
| £1+ |
1.81% |
1.80% |
1.44% |
| |
| Two-year Fixed Rate Bond and e-Bond (annual) |
AER |
Gross p.a. |
Net p.a. |
| £1+ |
2.10% |
2.10% |
1.68% |
| Two-year Fixed Rate Bond and e-Bond (monthly) |
AER |
Gross p.a. |
Net p.a. |
| £1+ |
2.07% |
2.05% |
1.64% |
| |
| Three-year Fixed Rate Bond and e-Bond (annual) |
AER |
Gross p.a. |
Net p.a. |
| £1+ |
2.25% |
2.25% |
1.80% |
| Three-year Fixed Rate Bond and e-Bond (monthly) |
AER |
Gross p.a. |
Net p.a. |
| £1+ |
2.22% |
2.20% |
1.76% |
| |
| Four-year Fixed Rate Bond and e-Bond (annual) |
AER |
Gross p.a. |
Net p.a. |
| £1+ |
2.40% |
2.40% |
1.92% |
| Four-year Fixed Rate Bond and e-Bond (monthly) |
AER |
Gross p.a. |
Net p.a. |
| £1+ |
2.38% |
2.35% |
1.88% |
| |
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 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.