Savers offered exclusive savings plan from Nationwide

Nationwide Building Society is launching an exclusive Guaranteed Combination Plan. By taking out a Guaranteed Savings Bond (GSB) and a Guaranteed Equity Bond (GEB) together, this could help savers make the most of their money in the current low interest rate environment. The Society is also making a number of changes to the savings and investment products it offers, giving customers more choice and flexibility. To help savers maximise their returns and get the best of both short and long-term savings products, the Society is launching:

an exclusive savings plan, offering up to 4.00% gross p.a./AER on a one year fixed rate bond (Guaranteed Savings Bond) when customers open a Guaranteed Equity Bond (GEB) at the same time. The Guaranteed Savings Bond is only available when a Guaranteed Equity Bond is purchased;

a new Guaranteed Equity Bond with the potential for stock market linked growth of up to 50% of the customer's original investment at the end of six years. If the maximum potential growth is achieved this is equivalent to 6.99% AER. If markets do not perform well, customers will still receive their original capital back at the end of the six year fixed term.

Robin Bailey, Nationwide's divisional director for investments, said: "For savers looking to maximise potential returns on their money, both over the short and long term, the new Guaranteed Combination Plan could be just what they're looking for. We understand how important it is for savers to find a competitive return for their savings in this low interest rate environment, which is why we're delighted that this exclusive option is now available.

"We are always looking at ways in which we can help our customers make the most of their money, so we have taken the decision to return part of the revenue we receive from Legal & General when we sell their Guaranteed Equity Bonds to enhance the return on the Guaranteed Savings Bond. This way, we're offering competitive rates without risking their capital. Interest rates are at a historic low and we have a duty to balance the needs of both our borrowers and savers."

Guaranteed Savings Bond

Customers who choose to open a GEB will have the opportunity to benefit from an exclusive one year Guaranteed Savings Bond (annual interest) paying up to 4.00% gross p.a./AER, therefore paying 3.5% more than the current base rate. The minimum investment is £3,000 in each product (£3,600 if a GEB ISA is opened or transferred into the GEB) and at least half of the total investment must be in the GEB. Interest can be paid monthly or annually on the GSB.

Guaranteed Equity Bond

The L&G GEB, now in its tenth issue, is a six year deposit-based GEB that guarantees to return the customer's original capital at the end of six years.

If the stock market indices (FTSE 100 Index, DJ EuroSTOXX 50® Index and S&P 500 Index) perform well, there is the potential for growth of up to 50% of the customer's original investment. If the maximum potential growth is achieved this is equivalent to 6.99% AER. The final calculation of the Guaranteed Equity Plan is based on 100% of any growth in the value of the three of the world's leading stock market indices - (subject to final year averaging).

If the indices do not perform well the customer will receive their original capital back at the end of six years.

No withdrawals can be made from the Guaranteed Equity Bond Deposit Fund.

GEB is available as either a deposit plan or a cash ISA.

The minimum investment for the deposit plan is £3,000 with no maximum.

To help customers make more of their annual tax free allowance, a minimum of £3,600 can be invested into a GEB ISA as long as the current year's ISA allowance has not yet been used. Previous years' cash ISA subscriptions can also be transferred in to the GEB subject to a minimum of £3,600 per ISA Manager, with no maximum.

The GEB can be opened on its own or with the exclusive one year 4.00% gross pa/AER savings bond.
The application deadline will be 8 August 2009 and the plan start date will be 12 August 2009. The Guaranteed Combination Plan may close early if the GEB is fully subscribed or if the GSB is withdrawn.