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Nationwide e-Bonds offer up to 4.5% interest

Friday, 26 June 2009 Writes Hazel Cottrell hazel.cottrell@consumerchoices.co.uk

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Rates are looking up for savers, as Nationwide offers customers up to 4.5% interest with its new e-Bonds.

Nationwide (www.nationwide.co.uk) is offering a new range of e-Bonds, with interest rates as follows:

Five year e-Bond paying up to 4.50%
Three year e-Bond paying up to 4.20%
Two year e-Bond paying up to 3.35%
NEW 18 month e-Bond paying up to 3.10%

These e-Bonds are available online to anyone with, or opening, a Nationwide FlexAccount. The UK’s largest building society has also launched a new range of fixed-rate bonds, which are available to everyone.

Nationwide is not the only savings provider that offering better interest rates on its fixed rate products.

Data from financial information company Moneyfacts (www.moneyfacts.co.uk) shows that the average rate on a one-year bond has increased by 0.31% in the last four months, from 2.78% in March to 3.09% today. The average rate on a five year bond has increased by 1.13% in the same period, from 2.86% to 3.99%.

Michelle Slade, analyst at Moneyfacts, said: “Volatility in the money markets is prompting providers to turn to their savings book to fund their lending activities.”

She pointed out that there are now 124 bonds paying a rate of 4% or more, compared to just three in March and added: “There doesn’t seem to be any limit to how high providers are prepared to go.”