Money News

Nationwide hikes interest to 5% on fixed-rate bonds

The competition for savers’ cash is truly in action, as Nationwide increases the interest rates on its e-Bonds to up to 5%.

Nationwide (www.nationwide.co.uk) has today increased the interest rates on its e-Bonds, which now offer the following guaranteed rates for savers:

• Five-year e-Bond paying up to 5%
• Three-year e-Bond paying up to 4.25%
• Two-year e-Bond paying up to 4.15%
• 18-month e-Bond paying up to 3.75%
• One-year e-Bond paying up to 3.5%

These e-Bonds are available online to anyone with, or opening, a Nationwide FlexAccount. The UK’s largest building society has also increased the interest rates on its fixed-rate bonds, which are available to everyone.

Andy Hutchinson, head of savings at Nationwide, said: “At a time when the base rate remains at a historic low of 0.5%, the Society’s rate increase reaffirms Nationwide’s commitment to savers.”

He added: “Whether savers are looking to tie their money up for the short, medium or long term, they will all benefit from these great rates.”

Savings with Nationwide of up to £50,000 are protected by the Financial Services Compensation Scheme (FSCS).

Chris Eagle, commercial manager at CreditChoices.co.uk, said: “Nationwide has thrown down the gauntlet to other providers with these cracking rates, and these e-Bonds are sure to be popular with savers.

“However, you need to weigh up the pros and cons of locking up your money for a long period of time – these rates are very attractive right now, but if you stash all you cash in one of these accounts you will be unable to switch if an even better deal comes along.”