Budget & Saving

Nationwide issues 'loyalty' bond

Nationwide has promised to reward its loyal customers with a market-leading fixed rate bond in a bid to help them get the highest returns on their savings.

The leading rates will be offered exclusively to existing customers, who will also receive annual letters from the building society notifying them of how much interest they are earning on their money, and whether a better rate is available with a different account.

From Wednesday, current savers will be able to access a three-year fixed rate bond that will pay a return of 4.5% - 0.5% higher than the next best product available.

Anyone who has had a balance of at least £1 in a Nationwide savings account for the past three months can qualify for the Christmas Loyalty Bond.

People must have a minimum of £1,000 to invest, and can pay in a maximum of £5,000.

The product will also be available as an ISA, as part of the group's new promise that returns paid on its fixed rate ISAs will match or beat those paid on comparable fixed rate bonds, to help people make the most of their tax-free savings allowance.

Nationwide is also following Halifax's lead as it will begin paying interest on cash ISAs that are being transferred to the group from the day it receives the application from next year.

Sam Jackson

Money Dashboard