Nationwide increases rates on fixed-rate bonds

Nationwide Building Society has increased the rates on a number of its Fixed Rate Bonds and e-Bonds.

These include: Three year Fixed Rate Bond and e-Bond paying up to 4.70% gross p.a./AER for balances over £25,000.

Two year Fixed Rate Bond and e-Bond paying up to 4.10% gross p.a./AER for balances over £25,000.

18 month Fixed Rate Bond and e-Bond paying up to 3.50% gross p.a./AER for balances over £10,000.

The news will no doubt be welcome for savers looking for a good return on their investments at a time when interest rates have been at the historically low level of 0.5% since March last year.

Andy Hutchinson, head of savings at Nationwide, comments: “The increase in interest rates on a number of our Fixed Rate Bonds and e-Bonds is great news for those who have made it their New Year resolution to save more in 2010.

“In particular, our market leading three year bonds are an attractive option, though we also offer competitive rates for terms between six months and five years to suit a variety of needs,” added Mr Hutchinson.

According to the latest research from the Nationwide Savings Index, around 25% of consumers are not currently saving. However, it hopes that its latest increase in rates will encourage more people to save.

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