Nationwide launches new fixed rate bonds and ISAs offering savers up to 4.5% interest

Nationwide Building Society has launced new issues of its Fixed Rate Online Bonds, Fixed Rate Branch Bonds and Fixed Rate ISAs.

The rates are available for balances of £1 or more and savers can open the Online Bonds via the website, Internet Bank and Banking app while Fixed Rate Branch Bonds can be opened in branch.

Nationwide’s Fixed Rate ISAs accept transfers in and can be opened via the website, Internet Bank, Banking app or in branch.

All previous Fixed Rate Online Bonds, Branch Bonds and ISAs were withdrawn from sale at close of business on 21 December 2023.

After many years of low rates, savings have made a significant comeback over the last year.

With inflation now sitting lower than the Bank of England base rate, there’s a chance to really make one’s money work for them.

The new rates are:

1 Year Fixed Rate Online Bond – 4.50 percent AER
1 Year Fixed Rate Branch Bond – 4.50 percent AER
1 Year Fixed Rate ISA – 4.50 percent AER/tax-free
2 Year Fixed Rate Online Bond – 4.20 percent AER
2 Year Fixed Rate Branch Bond – 4.20 percent AER
2 Year Fixed Rate ISA – 4.20 percent AER/tax-free
3 Year Fixed Rate Online Bond – 4.10 percent AER
3 Year Fixed Rate Branch Bond – 4.10 percent AER
5 Year Fixed Rate Online Bond – 4.00 percent AER
5 Year Fixed Rate Branch Bond – 4.00 percent AER

A fixed-rate bond is a type of savings account that gives people a fixed amount of interest for an agreed period as long as they don’t withdraw their money early.

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The interest rates paid on fixed-term bonds can be attractive, but people won’t be able to access their cash for the duration of the bond term without a penalty charge.

With interest rates as high as they’ve been for 15 years, but with many experts predicting they may fall in the coming months, it could be a good time to take advantage of fixed-rate bonds.

For example, if someone locks their money away in a six percent fixed rate bond for three years, their return will be guaranteed at six percent for the full term – even if interest rates and as a result rates offered on new bonds fall during this period.

Tim Heming, personal finance expert said: “If you have a lump sum of money sitting in your current account and aren’t sure what to do with it, a fixed-rate bond could be the ideal option.

“Savvy savers need to be prepared to lock their money away for a time, but will also know from the outset what return they’ll get when the bond matures.

“Taking out a fixed-rate bond can be especially worthwhile when interest rates are high and you think they might fall in the future.”

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