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Why choose Fixed Rate Bond?

Put away your money for a fixed amount of time. The longer the term, the higher the interest rate.

  • Deposit up to £5,000,000 per account
  • Interest rate: up to 1.75% AER/gross p.a. (fixed)
  • Access: if you want your money before the term ends, a charge will apply
  • Manage your money: online and in branch

Account details

Explore the key features and benefits of this account in our Summary Box before moving on to start your application.

Summary Box

Account name

Fixed Rate Bond

What is the interest rate?

You can find the details of our available interest rates in the table below.

Term Monthly interest rates (fixed) Annual interest rates (fixed)
  AER Gross p.a. AER Gross p.a.
1 year Fixed Rate Bond 0.75% 0.75% 0.75% 0.75%
2 year Fixed Rate Bond 1.00% 1.00% 1.00% 1.00%
5 year Fixed Rate Bond 1.75% 1.74% 1.75% 1.75%

Interest is calculated daily.

If you choose for interest to be paid annually:

Interest is paid at the end of the day before each anniversary of the account opening, at the end of the fixed term and on the date the account is closed. You can choose to have interest paid to you by having it added to your account, or by asking us to pay it into a different Nationwide current or savings account (as long as it is possible to make interest payments into that account) or a current account with another building society or bank.

If you choose for interest to be paid monthly:

Interest is paid at the end of each month, at the end of the fixed term and on the date the account is closed. The interest must be paid into a different Nationwide current or savings account (as long as it is possible to make interest payments into that account) or a current account with another building society or bank.

If you open your account towards the end of the month your first interest payment may not be paid until the end of the following month. 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 Fixed Rate Bond and cannot be changed.

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

Annual

Term Interest rates (fixed) Balance at end of term
AER Gross p.a.
1 year Fixed Rate Bond 0.75% 0.75% £1,007.50
2 year Fixed Rate Bond 1.00% 1.00% £1,020.10
5 year Fixed Rate Bond 1.75% 1.75% £1,090.62

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.

Monthly

Term Interest rates (fixed)
Balance at end of term Total interest payable
AER Gross p.a.
1 year Fixed Rate Bond 0.75% 0.75% £1,000.63 £7.50
2 year Fixed Rate Bond 1.00% 1.00% £1,000.83 £20.00
5 year Fixed Rate Bond 1.75% 1.74% £1,001.45 £87.00

The table above 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 in the “Balance at the end of the term” column, as per the Key Product Information. We’ve also shown you how much interest would be payable over the fixed term in the “Total monthly interest payable” column – this includes interest for the final month which would be added to your Fixed Rate Bond.

The estimated balances are for illustration only and assume that:

  • the Fixed Rate Bond is not closed before the end of the fixed term.

How do I open and manage my account?

To open this account you must:

  • be a UK resident and aged 16 or over.

You can have up to two account holders.
You can open the account with a minimum of £1 up to a maximum of £5,000,000.

If you are aged between 7 and 15 and already hold a Nationwide Fixed Rate Bond, or previously held money in a Fixed Rate Bond which has been transferred to a Fixed Term Bond Maturity account, you are able to open a new Fixed Rate Bond, but only after the term of the existing Fixed Rate Bond ends.

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:

You can manage this account:

At maturity it’s easy to move your savings between your existing Nationwide savings accounts or to open a new savings account with us. Simply go to nationwide.co.uk, use our Internet Bank or Banking app or visit us in one of our branches.

Can I withdraw money?

Yes, but this account doesn’t allow part withdrawals. You can close the account and withdraw the whole of the balance during the fixed term, subject to payment of an early access charge.

Once the account is open, there is a 14 day cancellation period where you will be able to cancel your Fixed Rate Bond. After this period if you do close the account early the early access charge will apply. The amount of the early access charge will depend on the length of the fixed term and will be based on a number of days’ interest at the rate applicable to the 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
5 year Fixed Rate Bond 365 days interest

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

At the end of the term, your Fixed Rate Bond will mature into a Fixed Term Bond Maturity account, giving you instant access to your money. We’ll contact you before your Fixed Rate Bond matures, with more information.

Additional information

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

Interest is calculated on each whole pound in the account.

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.

The treatment of your account for tax purposes will depend on your individual circumstances and you may need to pay tax on any interest that exceeds your Personal Savings Allowance. For more information please visit HM Revenue & Customs’ (HMRC) website hmrc.gov.uk. The tax information provided is based on our understanding of current law and HMRC practice, both of which may change.

The interest rates and information in this summary box are effective from 10 September 2018.

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 and Conditions in full and print or save a copy for reference.

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Help with your savings

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

Savings and cash ISA support