Nationwide 3.25% 1 Year Fixed Rate Bond

The Nationwide Building Society are now offering a decent rate of 3.25% AER on a balance of £50,000 and over for the latest issue of their 1 year fixed rate bond. If you haven’t got £50,000 to invest, don’t worry as the minimum investment is £1 which will achieve a rate of 3.00% AER.

Apply for the Nationwide eBond

The Nationwide.co.uk 1 year savings bond  has a maximum investment of £2,000,000 and early closure is allowed, but you’ll pay an interest  penalty. The 1 Year Fixed Rate bond can be opened on the phone or in branch, but if you’d rather do things online, then you need the eBond from www.nationwide.co.uk

The Nationwide.co.uk eBond earns you a fixed rate of up to 3.25% AER with an investment of as little as £1. All you need is a Nationwide FlexAccount before you can invest. The Nationwide.co.uk eBond is available for fixed terms of 6 months, 18 months, 1, 2,3 and 5 years, each with its own interest rate. The rates offered are only available for limited periods and may be withdrawn at any time, so if you want right rate, now is the time to apply. The rate you get also depends on the amount you invest. For the full rate table see the Nationwide website, but the purposes of illustration the rates for £50,000 investment are….

• 6 months ~ 2.62% AER
• 1 year ~ 3.25% AER
• 18 months ~ 3.50%
• 2 years ~ 4.2% AER
• 3 years ~ 4.7% AER
• 5 years ~ 5.00% AER

There are various articles around on the future of interest rates but given the pundits lack of recent sucees with predictions, no one can be sure. The concencus was that rates will go up, from near 0.00%, but as for how much and how quickly no one knows. The questions you have to ask yourself is “Will 5.00% AER be competative in 5 years time and worth the risk over the 2 year bond at 4.15%” “Could I get the 2 year bond and re-invest after 2 years with much better rates than 5% ?” The choice is up to you!

Related posts:

1. Nationwide 3 Year Stepped Bond
2. Nationwide 3 Year Fixed Rate ISA Bonds
3. Halifax 4.50% 3 Year Bond

Please note that this review does not constitute financial advice or endorsement of the product under review. The rates or products may have been changed or withdrawn since the review was written.