Nationwide Launches New Range of Fixed Rate Savings Bonds Paying Up To 6.70%
Personal_Finance / Savings Accounts Nov 21, 2007 - 01:31 AM GMTBy: Nationwide
Nationwide Building Society has today launched a new range of Fixed Rate Bonds offering highly competitive rates and guaranteed returns for savers. With effect from Monday 19 November 2007, the following new Bonds will be available:
- One year Loyalty Fixed Rate Bond paying 6.70%
- One year e-Bond paying 6.70%
- One year Fixed Rate Bond paying 6.60%
Nationwide’s new one year Loyalty Fixed Rate Bond, paying a competitive rate of 6.70%, will be available to over 8 million existing members of the Society who have been a member continuously for three years or more at the date of taking out the bond. Nationwide’s current two year Loyalty Fixed Rate Bond, paying 6.20%, will continue to be available to customers.*
Nationwide’s one year e-Bond, also paying a competitive rate of 6.70%, will be available online to anyone with a Nationwide FlexAccount.
Additionally, a new one year Fixed Rate Bond, paying 6.60%, will be available to new and existing members.
Matthew Carter, Nationwide’s savings director, said: “We are delighted to be offering savers rates of up to 6.70% on our new range of Fixed Rate Bonds. These are very competitive rates and great news for people looking for guaranteed high returns on their money over a fixed period.”
Nationwide’s previous one year Fixed Rate Bond was withdrawn from sale at close of business on Saturday 17 November 2007, while the one year e-Bond was withdrawn on Sunday 18 November 2007.
Notes:
* Customers of the former Portman Building Society with membership of three years or more will be eligible for the one and two year Loyalty Fixed Rate Bonds with Nationwide.
Details of Nationwide’s new bonds are below:
One Year Fixed Rate Bond and e-Bond (annual interest)
| AER | Gross p.a. | Net p.a. | |
|---|---|---|---|
| One Year Fixed Rate Bond | 6.60% | 6.60% | 5.28% |
| One Year e-Bond | 6.70% | 6.70% | 5.36% |
One Year Fixed Rate Bond and e-Bond (monthly interest)
| AER | Gross p.a. | Net p.a. | |
|---|---|---|---|
| One Year Fixed Rate Bond | 6.59% | 6.40% | 5.12% |
| One Year e-Bond | 6.70% | 6.50% | 5.20% |
One and two Year Loyalty Fixed Rate Bonds (annual interest)
| AER | Gross p.a. | Net p.a. | |
|---|---|---|---|
| One Year Loyalty Fixed Rate Bond | 6.70% | 6.70% | 5.36% |
| Two Year Loyalty Fixed Rate Bond | 6.20% | 6.20% | 4.96% |
One and two Year Loyalty Fixed Rate Bonds (monthly interest)
| AER | Gross p.a. | Net p.a. | |
|---|---|---|---|
| One Year Loyalty Fixed Rate Bond | 6.70% | 6.50% | 5.20% |
| Two Year Loyalty Fixed Rate Bond | 6.17% | 6.00% | 4.80% |
Fixed Rate Bonds and e-Bonds:
- Rates on the one year Fixed Rate Bond and one year e-Bond may be withdrawn without notice.
- Any Nationwide bond can be opened with a minimum investment of just £1.
- Members already holding a Nationwide bond can take out any of the new bonds available as there is no limit on the number of bonds a saver can hold, only an upper investment limit of £2,000,000 on Fixed Rate Bonds and £3,000,000 on Fixed Rate e-Bonds.
- One year bonds can be closed at any time subject to the loss of 90 days’ interest. No part withdrawals are allowed.
- Members who want a monthly income from their savings can fix their income by taking advantage of the monthly interest option.
- Nationwide e-Bonds are only available online through a FlexAccount and are operated through the Internet Bank.
Loyalty Fixed Rate Bonds:
- Loyalty Fixed Rate Bonds are only available to existing customers with three year’s membership
- Loyalty Fixed Rate Bonds will be fixed for one or two years and may be withdrawn without notice.
- Loyalty Fixed Rate Bonds may be held jointly where both holders are qualifying members of three years or more. Customers who only hold a credit card, stand-alone insurance product or accounts issued by the Society’s subsidiaries do not qualify.
- Loyalty Fixed Rate Bonds are limited to one per member and will be available throughout the year, although the rate payable will change on different tranches.
- Members can close the one year Loyalty Fixed Rate Bond at any time subject to the loss of 90 days’ interest. No part withdrawals are allowed.
- Members can close the two year Loyalty Fixed Rate Bond in the first year subject to the loss of 120 days’ interest, and in the second year subject to the loss of 90 days’ interest. No part withdrawals are allowed.
- Qualifying members should visit their local branch or call 08457 30 20 10 for further information.
Details of changes to the bond product range:
- The following bond was withdrawn from sale at close of business on Saturday 17 November 2007: one year Fixed Rate Bond at 6.15% gross/AER
- The following bond was withdrawn on Sunday 18 November 2007: one year e-Bond at 6.50% gross/AER.
- Nationwide’s one and two year Fixed Rate ISA Bonds remain available at 6.15% gross/AER.
Further information:
Roy Beale, 01793 655689
Charlotte Sjoberg, 01793 655189
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