Nationwide increases rates on fixed rate savings bonds

Nationwide Building Society has announced details of a new range of Fixed Rate Savings Bonds and e-Bonds, which all offer a guaranteed interest rate for savers.

With effect from Tuesday 7 July 2009, Nationwide's new fixed rate bond range will include:

Five year Fixed Rate Bond paying up to 5.00% gross p.a. / AER
Three year Fixed Rate Bond paying up to 4.25% gross p.a. / AER
Two year Fixed Rate Bond paying up to 4.05% gross p.a. / AER
18 month Fixed Rate Bond paying up to 3.75% gross p.a. / AER
One year Fixed Rate Bond paying up to 3.50% gross p.a. / AER

With effect from Tuesday 7 July 2009, Nationwide's new e-Bond range will include:

Five year e-Bond paying up to 5.00% gross p.a. / AER
Three year e-Bond paying up to 4.25% gross p.a. / AER
Two year e-Bond paying up to 4.15% gross p.a. / AER
18 month e-Bond paying up to 3.75% gross p.a. / AER
One year e-Bond paying up to 3.50% gross p.a. / AER

Rates on the six month Fixed Rate Bonds and e-Bonds, the one year Guaranteed Savings Bond, three year Stepped Rate Bond and the full range of Fixed Rate ISA Bonds 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: "At a time when the Base Rate remains at a historic low of 0.50%, the Society's rate increase on a number of its bonds is good news for those looking for a guaranteed interest rate and reaffirms Nationwide's commitment to savers. Whether savers are looking to tie their money up for the short, medium or long term, they will all benefit from these great rates."

The previous range of bonds will be withdrawn at 11.59pm on Monday 6 July 2009.

For more information, visit nationwide.co.uk