Nationwide increases rate on fixed rate ISA and bonds

Nationwide Building Society is increasing the rates on its one-year Fixed Rate Bond, e-Bond, Tracker Bond and Tracker e-Bond, and Fixed Rate ISA by up to 0.25%.  In addition, the new rate will see Nationwide continue its parity pledge that ensures its Fixed Rate cash ISA rates match the equivalent Bond rates, something which was first introduced back in February 2010.

With effect from Friday 5 November 2010, the new rates for annual interest on the one-year Fixed Rate Bond, e-Bond, Tracker Bond and Tracker e-Bond, and Fixed Rate ISA will range from 2.75% to 3.00% gross p.a./AER.

Robin Bailey, Nationwide's director for savings, said:  "Nationwide's interest rate increase on these products is good news for savers who are looking to maximise the return on their money.  In the current climate, it is important to cater for a variety of savings needs, which is why Nationwide offers a competitive range of Fixed Rate Bonds and ISAs over a variety of different terms from one to five years."

Rates remain unchanged on Nationwide's two, three and five-year Fixed Rate Bonds and e-Bonds, on its three and five-year Fixed Rate ISAs, and on its one and three-year Combination Savings Bonds.

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

Nationwide's previous range of one-year Fixed Rate Bonds, e-Bonds, Fixed Rate ISAs, Tracker Bonds and Tracker e-Bonds will be withdrawn at 23:59 on Thursday 4 November 2010.