Nationwide Launches “Market-Leading” 5.3% Fixed-Rate Bond Exclusively for Its 19 Million Members

London: Nationwide Building Society has launched a fixed-rate savings account paying what it describes as a “market-leading” 5.3% interest, available exclusively to its members, who number more than 19 million.

The account was introduced just days before the Bank of England raised its base rate to 4%, a move expected to be welcomed by many savers across the country.

Nationwide said the new product forms part of its commitment to rewarding existing members for their loyalty. The Member Exclusive Bond runs for a 30-month term and accepts deposits ranging from £1 to £10,000. A saver depositing the maximum £10,000 would earn £1,381 in interest by the end of the term.

Many experts believe the 5.3% fixed rate will remain competitive even after Thursday’s base rate increase. Katie Horne of the savings platform Flagstone said banks had been factoring an anticipated rate rise into their fixed-term savings products for several months, adding that a single 0.25% increase in the base rate was not expected to push fixed rates significantly higher.

The rate places the bond on a par with the highest-paying two-year and three-year fixed-rate savings accounts currently available on the market.

The account can be opened in branch, online or through Nationwide’s mobile app. However, as it requires savers to lock away their money for two and a half years, it is suited only to funds that will not be needed in the meantime. Once the bond is opened, withdrawals are not permitted until the end of the term. For savings that may need to be accessed at short notice, an instant access account or similar product would be more appropriate.

Deposits can only be made within the first 14 days of opening the account, and each saver is limited to one bond. Applicants must be aged 16 or over and must have held a qualifying Nationwide or Virgin Money account since at least 2 November this year.