Nationwide has launched new issues of fixed rate bonds and ISAs, paying up to 5.2% AER. But how do they compare against the best in the market?
The mutual offers the following rates on these products for balances from £1:
- 1 Year Fixed Rate Online Bond – 5.20% AER
- 1 Year Fixed Rate Branch Bond – 5.20% AER
- 1 Year Fixed Rate ISA – 5.20% AER/tax-free
- 2 Year Fixed Rate Online Bond – 5.00% AER
- 2 Year Fixed Rate Branch Bond – 5.00% AER
- 2 Year Fixed Rate ISA – 5.00% AER/tax-free
- 3 Year Fixed Rate Online Bond – 4.80% AER
- 3 Year Fixed Rate Branch Bond – 4.80% AER
- 5 Year Fixed Rate Online Bond – 4.60% AER
- 5 Year Fixed Rate Branch Bond – 4.60% AER.
As you’d expect, the online bonds can only be opened via the website, internet bank or app, while branch bonds can only be opened in person at any of 600+ Nationwide high street locations.
When it comes to the ISA, it allows transfers in from other providers and they can be opened via digital or physical methods.
How do the Nationwide fixed rate bonds compare?
These new issues aren’t market-leading but savers may be drawn to Nationwide due to familiarity with a big mutual, the low minimum starting value and because of its branch presence.
The best-paying one-year fixed rate bond offers 6.05% from the Union Bank of India on a minimum £1,000. You can apply in branch or by post, according to Savings Champion data.
In fact, the top five accounts in this category pay upwards of 5.86% AER from the likes of Ikano Bank, Vanquis, FirstSave and Habib Bank.
On the two-year deals, Savings Champion data reveals the best-two year rate (6% AER) is again offered by Union Bank of India, though savers can opt for an 18-month bond paying 6% AER from FirstSave (minimum £1,000).
On the three-year range, JN Bank UK offers 5.97% AER for online applicants depositing a minimum £1,000.
And when it comes to locking up your cash for five years, JN Bank UK once again offers the best rate for savers at 5.80% AER.
On ISAs, UBL pays 5.70% AER on a minimum deposit of £2,000 – transfers in are accepted – and it can be opened in branch, mobile, online or by post.
For savers tying up their ISA cash for two years, Savings Champion data reveals Zopa’s Smart ISA pays 5.61% AER on a minimum £1 but it can only be opened online.
Related: How to get 8% interest without tying up your cash for years
