Nationwide has launched a 5.30% 30-month fixed-rate savings account that could deliver a £1,381.92 windfall to members who deposit the maximum £10,000. The account, introduced this week, is available exclusively to Nationwide members and Virgin Money customers who hold Nationwide membership.
Market-leading rate ahead of base rate rise
The UK's largest building society unveiled the Member Exclusive Bond days before the Bank of England raised the main base rate to 4%. Savers can deposit between £1 and £10,000, with the full amount earning £1,381.92 in interest over the complete term.
Nationwide, the world's largest building society, boasts over 19 million members. The new account can be opened at a branch, online, or through Nationwide's app.
Expert views on the fixed rate
Katie Horne at the savings platform Flagstone commented: "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."
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."
Terms and eligibility
Deposits can only be made within the first 14 days of opening the account, and it is restricted to one per saver. To be eligible, you must be aged 16 or over and have held a qualifying Nationwide or Virgin Money account since at least 2 November this year.
Financial experts advise that the bond requires locking away funds for two-and-a-half years, so it should only be used for money not needed in the near future. Once the bond is active, funds remain inaccessible until the term concludes. For money that may be needed readily, an instant access account or something comparable would be more suitable.
Loyalty rewarded
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."
He added: "That's what being a mutual is all about – we're owned by our members rather than shareholders, so we can focus on delivering value back to them. Whether that's through exclusive products like our new Member Exclusive Bond or the £100 Fairer Share payments we've paid for four years running, we want our members to see a real benefit from being part of Nationwide."
