Nationwide increases rates on fixed rate ISA bonds

Nationwide Building Society today announces details of a new range of competitive Fixed Rate ISA Bonds, which all offer a guaranteed interest rate for savers looking to take advantage of their annual tax-efficient allowance.

With effect from Friday 24 July 2009, Nationwide's new Fixed Rate ISA Bond range will include:

One year Fixed Rate ISA Bond paying up to 3.00% gross p.a. / AER
Two year Fixed Rate ISA Bond paying up to 3.50% gross p.a. / AER
Three year Fixed Rate ISA Bond paying up to 3.75% gross p.a. / AER
Five year Fixed Rate ISA Bond paying up to 4.50% gross p.a. / AER

The Society also accepts transfers-in on its full range of Fixed Rate ISA Bonds.

Rates on Nationwide's six month Fixed Rate ISA Bond, full range of Fixed Rate Bonds and e-Bonds, one year Guaranteed Savings Bond and three year Stepped Rate Bond remain unchanged. The variable rate one year Tracker Bond continues to be available and is guaranteed to beat the Bank of England Base Rate by 2.05% - 2.30% depending on account balance.

Andy Hutchinson, head of savings at Nationwide, said: "The interest rate increase on a number of Nationwide's Fixed Rate ISA Bonds is good news for those savers looking for a guaranteed rate of return on their tax efficient savings. Our full range of Fixed Rate ISA Bonds provides competitive interest rates on terms from six months to five years and includes the market leading three year and five year Fixed Rate ISA Bonds, so a wide variety of savers will benefit from our rates.

"We also accept transfers-in on our full range of Fixed Rate ISA Bonds, so I encourage all savers interested in the new bonds to visit any one of the Society's local branches."