Nationwide increases rates on Fixed Rate ISAs and Bonds

Nationwide Building Society is raising rates on selected Fixed Rate Bonds, Fixed Rate ISAs, e-Bonds, and Tracker Bonds by up to 0.50%.  At the same time, the Society is also maintaining the parity between its cash ISA rates and the equivalent Bond rates, something which Nationwide has been doing since February 2010.

The new rates for annual interest will be:

2.50% to 2.75% gross p.a./AER on the one-year Fixed Rate Bond, e-Bond, Fixed Rate ISA, Tracker Bond and e-Bond.

3.30% to 3.55% gross p.a./AER on the two-year Fixed Rate Bond and e-Bond.

3.50% to 3.85% gross p.a./AER on the three-year Fixed Rate Bond, e-Bond and Fixed Rate ISA.

Robin Bailey, Nationwide's divisional director for savings and investments, said:  "We have an extremely attractive range of Fixed Rate accounts suitable for taxpayers and non-taxpayers alike and this latest rate increase is good news for savers who are looking for a guaranteed return in the current climate.

"We are also keeping our Fixed ISA rates aligned with the equivalent Bond rates so that Nationwide customers can be confident their cash ISA gives them an even better tax free return than our equivalent Bond."

Monthly interest options are also available for all Fixed Rate Bonds, e-Bonds, Fixed Rate ISAs and Tracker Bonds and e-Bonds.

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

Nationwide's previous range of Fixed Rate Bonds, e-Bonds, Fixed Rate ISAs, Tracker Bonds and e-Bonds and Tracker ISAs was withdrawn at 23:59 on Thursday 21 October 2010.

Rates remain unchanged on Nationwide's five-year Fixed Rate Bond and e-Bond, one and three-year Combination Savings Bonds, and the five-year Fixed Rate ISA.