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Fixed Rate Bonds

A Nationwide Fixed Rate Bond is a savings account that pays a fixed rate of interest on a one-off lump sum deposited for the term of the account. You can choose the length of the term, and whether to have your interest paid monthly or annually.

If you can lock away a lump sum for a fixed length of time, then a fixed term account can potentially reward you with a higher interest rate.

Help with your savings

Our support pages have information on how to manage your account and view interest rates.

Go to Savings & ISA support

Summary Box

Account name

Fixed Rate Bond

What is the interest rate?

The interest rate on this account is dependent on your chosen length of term and whether you choose to have interest paid annually or monthly. Interest is calculated daily.

Term Interest Rate gross p.a./AER (fixed)
Annual Monthly
1 Year Fixed Rate Bond 0.65% 0.65%
2 Year Fixed Rate Bond 0.75% 0.75%

If you choose an Annual interest account:
Interest is paid annually on the anniversary of the account opening and on maturity. Interest can be added to your Fixed Rate Bond, or paid directly to a Nationwide current or savings account (subject to the terms and conditions of the receiving account), or a current account with another bank or building society.

If you choose a Monthly interest account:
Interest is paid monthly directly to a Nationwide current or savings account (subject to the terms and conditions of the receiving account), or a current account with another bank or building society.

Note: When interest is paid monthly, it cannot be added to the Fixed Rate Bond, and must be paid into another account. However, the final interest payment, when the account matures, is added to the Fixed Rate Bond.

Can Nationwide change the interest rate?

No, the interest rate on this account is fixed for the term of the Bond and cannot be changed.

What would the estimated balance be at the end of the Fixed Term based on a £1,000 deposit?

Term Interest rate gross p.a./AER (fixed) Balance at end of term
1 Year Fixed Rate Bond 0.65% £1,006.50
2 Year Fixed Rate Bond 0.75% £1,015.06

The table above shows the balance on a deposit of £1,000 at the end of the fixed term with the fixed rate shown where interest is paid annually into the account.

Term Interest rate gross p.a./AER (fixed) Balance at end of term
1 Year Fixed Rate Bond 0.65% £1,000.54
2 Year Fixed Rate Bond 0.75% £1,000.63

This shows the balance on a deposit of £1,000 for the fixed term with the fixed rate shown where interest is paid monthly into another account. Only the final months interest payment is shown as being added to the account, as per the account terms and conditions.

Both projections are for illustration only and assume that:

  • The Fixed Rate Bond is not closed before the end of the fixed term.
  • Individual circumstances do not change.

How do I open and manage my account?

To open this account:

  • You need to be aged 7 or over (for children under seven the account can be held in Trust).
  • You can have up to 2 account holders.
  • You can open the account with a minimum of £1 up to a maximum of £5,000,000.
  • You can open several Fixed Rate Bonds as long as your combined balance across all bonds does not exceed £5,000,000.

Please note: This is a lump sum account so you can’t add more money to the account once it has been opened.

You can open this account with one lump sum:

You can manage this account:

  • Via the Internet Bank or Banking app (if you're registered for Internet Banking).
  • In branch.

Please note: you will need a minimum of £1 in the account for it to operate.

At maturity it's easy to move your savings between your existing Nationwide savings accounts or to open a new savings account with us. We can also close your existing savings account, if you want us to. Just let us know when you open a new account on nationwide.co.uk, via our Internet Bank or Banking app (if you're registered) or come and see us in branch.

Can I withdraw money?

No, this account doesn’t allow part withdrawals. Withdrawing the whole amount will close the account, which will result in loss of interest.

If you do close the account early you’ll be charged an early access charge. The amount charged will depend on the term of the Fixed Rate Bond. This will be equivalent to the number of days interest accrued at the current rate of your Fixed Rate Bond as detailed in the table below.

Term Early Access Charge
1 Year Fixed Rate Bond 90 days interest
2 Year Fixed Rate Bond 180 days interest

If there is insufficient earned interest to cover the early access charge then the charge will be taken from the funds in the account. The funds in the account, together with any interest earned and minus the early access charge, will be paid to you on closure of the account.

At the end of the term, your Fixed Rate Bond will mature into a Fixed Term Bond Maturity account, giving instant access to your money. Part withdrawals from a Fixed Term Bond Maturity account are only permitted through our Internet Bank. If you want to take money out in a branch, the account must be closed or all of the funds transferred to another account. We’ll contact you before your Bond matures with more information. Alternatively you can choose to transfer your balance to another Nationwide account, held in either your name or a third party’s name(s).

Additional information

We’ll send you a certificate within a few days of opening your account, outlining your account balance and interest rate.

Interest rate definitions explained:

  • AER stands for Annual Equivalent Rate and illustrates what the interest rate would be if interest was paid and compounded once each year.
  • Gross p.a. is the interest rate without tax deducted.

You may need to pay tax on any interest that exceeds your Personal Savings Allowance. For more information please visit HMRC’s website.

The tax information provided is based on our understanding of current law and HM Revenue & Customs practice, both of which may change.

The rates and information in this summary box are correct as of 01 December 2016.

This Summary Box sets out the key features of the savings account. For full details, please read the account terms and conditions.

Before you apply, please make sure you read the Summary Box and terms & conditions in full and print or save a copy of the PDFs below for future reference.