If you are looking for a better rate of return from your savings than a saving account, you could try one of the Nationwide fixed rate bonds. Terms can range from 6 months to 3 years, depending on how long you want to lock your cash away for, and with tiered interest rates, the more you save, the more you earn. You can compare Nationwide fixed rate bonds and apply online using the table below:
Nationwide fixed rate bonds feature:
- Minimum opening deposit of £1
- Choice of terms from 6 months to 3 years
- Open several bonds as long as the total does not exceed £5 million
- Choice of monthly or annual interest payments
- Fixed rate of payment
- Option to have a joint account
- To open a Nationwide fixed rate bond you need to be at least 7 years old
As opening a nationwide fixed rate bond would require you to lock away your savings for a set period of time before you do so you might want to consider alternative savings options as well:
- Tracker bonds – Similar to a fixed rate bond, but instead of your interest rate staying consistent throughout the bonds term, it will change in relation to any increases or decreases in the Base Rate set by the Bank of England. This means you could get a better or worse interest rate over the bond’s term. Due to this variation you cannot predict beforehand how much you will receive in return at the end of the bond’s term.
- Structured Deposits – Like fixed rate and tracker bonds a structured deposit requires you to lock up your funds for a period of time however they generally offer better potential interest payments, but they are not guaranteed so you may only get your original deposit back. This is because this type of plan is usually tied to the performance of an index such as the FTSE 100, if over the plan the index or indices perform in a certain way, as stated in the plan, you will receive your original investment back plus an interest payment. However if it does not perform in a way set out at the start of the plan you will receive your investment back but will no gains on it, so it is a risk that needs to be carefully considered beforehand.
- Savings Account – Instant access savings accounts tend to offer lower interest rates than structured deposits or bonds, however they will usually allow you to make unlimited penalty free withdrawals from the account.