A savings account paying “market-leading” ۵.۳% interest was launched this week by Nationwide building society. It’s only for Nationwide members – but there are more than ۱۹ million of them.
The account was launched just a couple of days before the Bank of England pushed up the main base rate to ۴%, a move that will be welcomed by many savers.
Nationwide says the fixed-rate account is part of its commitment to reward existing members for their loyalty. The Member Exclusive Bond has a ۳۰-month term, and you can pay in from £۱ to £۱۰,۰۰۰. Someone saving the full £۱۰,۰۰۰ would receive £۱,۳۸۱ in interest at the end of the term.
Many experts think that ۵.۳% fixed rate will still look good after Thursday’s base rate hike.
“Banks have been building an anticipated hike into the rates they offer on fixed-term savings accounts for several months now,” says Katie Horne at the savings platform Flagstone. “A single ۰.۲۵% base rate increase isn’t expected to move fixed rates much further.”
At the time of writing, account puts it on a par with the top-paying fixed-rate savings accounts over two and three years.
The new account can be opened at a branch, online and via Nationwide’s app.
But as it involves locking away your money for two-and-a-half years, this needs to be cash that you won’t need for a while. Once the bond is open, you cannot access your money until the end of the term. For money that you might need to get your hands on, an instant access account or similar would be better.
You can only pay in money during the first ۱۴ days after you open the account, and it is limited to one per saver. To apply, you must be ۱۶-plus and have had a qualifying Nationwide or Virgin Money account since at least ۲ November this year.
