Nationwide offering interest rate guarantees on savings accounts

18 July 2005
Beginning on July 15th Nationwide will introduce interest rate guarantees on savings accounts for the first time.

Nationwide guarantees that an annual interest rate on the Members' Reward Bond will be at least 0.25 per cent above the Bank of England base rate for the next three years.

The Members' Reward Bond is a three-year fixed-term investment, which provides a variable rate of interest.

The bond is available only to existing Nationwide members of three or more years and is currently 5.40 per cent gross pa/AER.

Nationwide's Special Rate Bond will also see an interest rate guarantee of 0.25 per cent below the Bank of England base rate for the next two years.

The Special Rate Bond is a two-year investment providing a variable rate of interest that currently pays up to 5.15 per cent gross pa/AER.

In addition, Nationwide has announced an extension on its existing e-Savings guarantee.

Nationwide promises to match or beat the Bank of England base rate until September 30th 2006.

Steve Clode, Nationwide's marketing director, said: "We now offer the best of both worlds, providing peace of mind for those members who are familiar with the certainty of fixed rate bonds but seeking a higher return than the market currently offers".

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