Nationwide increases rates on Fixed Rate Bonds and e-Bonds

Nationwide Building Society has announced details of new rates on its two and three-year Fixed Rate Bonds and e-Bonds and the launch of a new three-year Fixed Rate ISA.

Fixed Rate Bonds and e-Bonds

The new rates for annual interest options will include:

Two-year Fixed Rate Bond and e-Bond paying 3.50% 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. 

All other Bonds and e-Bonds remain unchanged.

Fixed Rate ISAs

Nationwide will also launch a market leading three-year Fixed Rate ISA paying 4.00% gross p.a./AER for balances of £1 or more, for the annual interest option.

The interest rates for all other Fixed Rate ISAs remain unchanged.

The changes come into effect on Friday 11 June 2010.

All Nationwide cash ISAs accept transfers-in, meaning that customers can switch their existing cash ISA balances to Nationwide for potentially a better deal.

Robin Bailey, director of savings and investments at Nationwide, said: "Nationwide's interest rate increase on its two and three-year Fixed Rate Bond and e-Bonds is good news for savers who are looking for a guaranteed rate of return in the continued low interest rate environment.  Nationwide would always urge consumers to save but the most recent research from the Nationwide Savings Index shows that 21% of consumers are still not saving anything at all.  Hopefully these increased rates will encourage more people to do so."

The current two-year and three-year Fixed Rate Bonds and e-Bonds will be withdrawn at the close of business on Thursday 10 June 2010.