Nationwide “throws down the gauntlet” with new bond rates

| July 8, 2009 | 0 Comments

Nationwide Building Society yesterday increased the interest it pays on fixed-rate bonds and e-Bonds, with a headline interest rate of 5%.

The fixed-rate bonds are available to anyone, while the e-Bonds are available online to any Nationwide customer with a Nationwide FlexAccount.

Both accounts are available for one year, 18 months, two years, three years or five years.

The interest rate on the bonds and e-Bonds is up to 3.5% on the one year bond, increasing to up to 5% on the five year bond.

The 18 month bond pays up to 3.75% interest, the two year bond up to 4.15% and the three year bond up to 4.25%.

“At a time when the Base Rate remains at a historic low of 0.5%, the Society’s rate increase on a number of its bonds is good news for those looking for a guaranteed interest rate,” said Andy Hutchinson, Nationwide’s head of savings.

Chris Eagle, of consumer finance site, said Nationwide has “thrown down the gauntlet” to other financial providers with these interest rates.

However, he urged savers to assess “the pros and cons of locking up your money for a long period of time” before choosing a fixed-rate bond.

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