Nationwide Launches 5.3% Fixed Savings Bond for Existing Members
The building society is offering a 30-month Member Exclusive Bond paying 5.3% interest on deposits up to £10,000.
At a glance
- Nationwide launched a 30-month Member Exclusive Bond paying a fixed interest rate of 5.3%.
- Deposits are capped between £1 and £10,000 and must be paid in during the first 14 days after opening.
- Only existing Nationwide or Virgin Money account holders as of 2 November aged 16 or over are eligible.
Nationwide building society has launched a 30-month fixed-rate savings bond offering 5.3% interest to its existing customer base in the United Kingdom. The Member Exclusive Bond was made available days before the Bank of England raised the main base rate to 4%.
Eligibility is limited to the society's more than 19 million members. To qualify, applicants must be at least 16 years old and have maintained a qualifying account with Nationwide or Virgin Money since at least 2 November. Eligible customers can open the account online, in branches, or through Nationwide's mobile app, with each saver restricted to holding a single bond.
Account Limits and Terms
Under the rules of the product, savers can deposit a minimum of £1 up to a maximum of £10,000. Nationwide noted that paying in the full £10,000 allowance would yield £1,381 in interest when the term concludes. The institution stated the launch is intended to reward loyal members.
However, the product includes strict access limitations. Savers are only allowed to deposit money during the first 14 days after opening the bond. Following that window, funds cannot be withdrawn or accessed until the full two-and-a-half-year period ends, making it unsuitable for individuals who may require quick access to their cash.
Market Impact
The 5.3% rate puts the offer on par with the market's highest-paying two- and three-year fixed accounts. Financial analysts do not anticipate broad upward movement in fixed rates following the Bank of England's recent 0.25% base rate increase.
Katie Horne of the savings platform Flagstone explained that lenders had already factored the expected central bank rate rise into their fixed-term rates in advance, meaning a single base rate rise would not push fixed savings yields significantly higher.
Source: The Guardian World.
Questions and answers
- Who is eligible to open the Nationwide 5.3% savings bond?
- Savers must be aged 16 or older and must have held an eligible Nationwide or Virgin Money account since at least 2 November.
- How much can you deposit into Nationwide's Member Exclusive Bond?
- Savers can deposit between £1 and £10,000, but all funds must be paid in within the first 14 days of opening the account.
- Can you withdraw money from the Nationwide 5.3% bond before it matures?
- No, money placed in the 30-month bond is locked away and cannot be accessed until the full term has ended.
