Nationwide fixed rate bond paying up to 4.70 per cent

Nationwide Building Society announces rate increases for a number of its Fixed Rate Bonds and e-Bonds, which all offer guaranteed interest rates for savers.

This includes the market leading three year Fixed Rate Bond and e-Bond (annual interest options), which pay up to 4.70% gross p.a./AER fixed for balances over £25,000.

With effect from tomorrow, Friday 15 January 2010, the new rates for annual interest options will include:

Three year Fixed Rate Bond and e-Bond paying up to 4.70% gross p.a./AER for balances over £25,000

Two year Fixed Rate Bond and e-Bond paying up to 4.10% gross p.a./AER for balances over £25,000

18 month Fixed Rate Bond and e-Bond paying up to 3.50% gross p.a./AER for balances over £10,000

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

The Guaranteed Savings Bond is only available when a six year Legal & General (L&G) Capital Guaranteed Multi-Index Equity Bond (GEB) is purchased together and for at least the same amount.  The Guaranteed Savings Bond can only be opened as part of a Guaranteed Combination Plan from a Nationwide branch.

Andy Hutchinson, head of savings at Nationwide, said: "The increase in interest rates on a number of our Fixed Rate Bonds and e-Bonds is great news for those who have made it their New Year resolution to save more in 2010.  In particular, our market leading three year bonds1 are an attractive option, though we also offer competitive rates for terms between six months and five years to suit a variety of needs.

"Our most recent research from the Nationwide Savings Index shows that a quarter of consumers are not saving any money at all, so hopefully this increase in interest rates will go some way to encouraging consumers to save."

The current three year, two year and 18 month Fixed Rate Bonds and e-Bonds will be withdrawn at the close of business on Thursday 14 January 2010.