Nationwide launches member savings bond with 5.3% fixed rate

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Nationwide 5.3% savings bond

Highlights

Nationwide launches a Member Exclusive Bond offering a 5.3% fixed rate over 30 months, available only to qualifying members with accounts since at least 2 November.
Savers can deposit between £1 and £10,000 within 14 days of opening, earning up to £1,381 interest over the fixed term, with funds inaccessible during the 30 months.
Analysts say the 5.3% rate remains market-leading and may stay competitive following the Bank of England’s base rate rise to 4%, with limited expectation of further near-term hikes impacting fixed rates.

Product terms and eligibility

As reported by The Guardian, Nationwide has introduced a Member Exclusive Bond paying what it describes as a market-leading 5.3% fixed rate over 30 months, shortly before the Bank of England raises its main base rate to 4%. The building society says the account forms part of its effort to reward existing members for their loyalty.

The bond is available only to members aged 16 or over who have held a qualifying Nationwide or Virgin Money account since at least 2 November this year. Savers can open the account in branch, online or through Nationwide's app, and may deposit from £1 to £10,000 during the first 14 days after opening.

Nationwide says a saver placing the full £10,000 would receive £1,381 in interest by the end of the term. The product is limited to one account per saver, and funds cannot be accessed until the 30-month term ends.

Rate outlook and saver implications

Analysts cited in the report indicate the fixed rate may remain competitive even after the latest Bank of England move. Katie Horne of savings platform Flagstone says banks have already been factoring an expected rate increase into fixed-term savings offers for several months, and that a single 0.25 percentage point rise is not expected to push fixed rates much higher.

At the time described in the report, the account matches the top-paying fixed-rate savings products across two-year and three-year terms. The long lock-in period means the bond is better suited to customers setting aside cash they do not expect to need in the near term, while savers needing flexibility may find instant-access accounts more appropriate.

Our earlier coverage on the Bank of England’s rate outlook noted that most economists were increasingly expecting Bank Rate to rise to 4.0% in November, as inflation stayed above the 2% target and was forecast to pick up further. The piece also highlighted that policymakers were balancing the case for tighter policy against lingering risks from inflation and market volatility, keeping markets focused on how higher rates could filter through to borrowing and savings products.

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