Nationwide launches Football savings bond
Nationwide Building Society - sponsors of the England football team – has announced details of its new Football savings bond.
Details of new rates for a number of the Society's Fixed Rate Savings Bonds, e-Bonds1, Stepped Rate e-Bonds, Tracker Bonds, Tracker e-Bonds1 and Fixed Rate ISAs are also announced today. All changes will come into effect from Friday 14 May 2010.
Four-year fixed rate Football Bond paying 4.15% gross p.a./AER
The four-year Football Bond pays a competitive 4.15% gross p.a./AER, plus an additional bonus if England lift the cup in South Africa this summer. Should this happen, an additional fixed bonus of 0.50% gross p.a. will be paid from 14 May 2011 until maturity of the bond.
Fixed Rate Bonds, e-Bonds, Stepped Rate e-Bonds, Tracker Bonds and Tracker e-Bonds
The new rates for annual interest options will include:
One-year Tracker Bond and Tracker e-Bond paying between 2.25% and 2.50% gross p.a./AER. These accounts pay up to 2.00% above the Bank of England Base Rate and are guaranteed to track changes in the Base Rate. The balance needs to be £50,000 or over to receive the top rate. The minimum opening balance is £100
Two-year Fixed Rate Bond and e-Bond paying 3.40% gross p.a./AER for balances of £1 or more
Three-year Fixed Rate Bond and e-Bond paying 4.00% gross p.a./AER for balances of £1 or more
Five-year Fixed Rate Bond and e-Bond paying 4.25% gross p.a./AER for balances of £1 or more
Four-year Stepped Rate e-Bond paying 3.00% gross p.a./AER in the first year, 4.00% gross p.a./AER in the second year, 4.50% gross p.a./AER in the third year and 5.00% gross p.a./AER in the fourth year. The minimum opening balance for this account is £5,000
The interest rates for the following accounts remain unchanged:
Six-month, one-year and 18-month Fixed Rate Bonds and e-Bonds
One-year Combination Savings Bond
The current two-year, three-year and five-year Fixed Rate Bonds and e-Bonds, one year Tracker Bond and four-year Stepped Rate Bond will be withdrawn at the close of business on Thursday 13 May 2010.
Fixed Rate ISAs
The new rates for annual interest options will include:
One-year Fixed Rate ISA paying 2.50% gross p.a./AER for balances of £1 or more
18-month Fixed Rate ISA paying 3.00% gross p.a./AER for balances of £1 or more
Four-year Fixed Rate ISA paying 4.15% gross p.a./AER for balances of £1 or more
All Nationwide cash ISAs accept transfers-in, meaning that customers can switch their existing cash ISA balances to Nationwide for potentially a better deal.
The interest rates for the two-year Tracker ISA remain unchanged.
The current one-year and four-year Fixed Rate ISAs, as well as the three-year Fixed Rate ISA for maturity customers, will be withdrawn at the close of business on Thursday 13 May 2010.
Robin Bailey, divisional director of savings and investments at Nationwide, said: "As proud sponsors of the England football team, I'm delighted to announce the launch of Nationwide's new four-year Football Bond. The Football Bond potentially goes further than just providing a guaranteed competitive interest rate for savers; it will also pay out an additional fixed bonus if England lift the cup in South Africa this summer. So if you're looking for a longer term savings bond and you want another reason to celebrate an England victory in South Africa, consider the Nationwide Football Bond."