Nationwide has launched a new 5.30% 30-month fixed-rate savings account exclusively for its members, with the bank saying customers could receive a £1,381 boost if they save the maximum amount. The account was introduced this week, just before the Bank of England raised the main base rate to 4%.
The Member Exclusive Bond allows savers to deposit between £1 and £10,000, with someone saving the full amount receiving £1,381.92 in interest after 30 months. Nationwide, the world's largest building society, has over 19 million members.
Market-Leading Rate for Loyal Customers
The account is available exclusively to Nationwide members and Virgin Money customers who are members of Nationwide. It can be opened at a branch, online, or via the Nationwide app. However, the money is locked away for two-and-a-half years, and once the bond is open, savers cannot access their funds until the end of the term.
Katie Horne at the savings platform Flagstone said: "Banks have been building an anticipated hike into the rates they offer on fixed-term savings accounts for several months now. A single 0.25% base rate increase isn't expected to move fixed rates much further."
Loyalty Rewarded
Anna Bowes, Personal Finance Expert at The Private Office, said: "It's good to see a provider rewarding loyalty rather than paying the best rates to new customers only. We know that not enough savers regularly switch providers, so having the chance to earn a market-leading rate as a loyal customer is refreshing, especially from a high street brand."
Richard Stocker, Nationwide's Head of Savings, said: "Our research shows people want loyalty to be recognised, and too many feel the best deals today are reserved for new customers. We don't think being a loyal customer should mean watching the best deals go to someone else."
Application Requirements
Savers can only pay in money during the first 14 days after opening the account, and it is limited to one per saver. Applicants must be 16 or over and have had a qualifying Nationwide or Virgin Money account since at least 2 November this year. Experts advise that this account is suitable for cash that won't be needed for a while, with instant access accounts recommended for money that may be required sooner.
