Nationwide's new fixed rate bonds launched

Nationwide Building Society has announced plans to launch four new fixed rate bonds.

The new products will replace the previous one, two and three-year fixed rate bonds and the e-Bond, which were withdrawn on Saturday June 18th 2005.

The rate for the one, two and three year bonds is 4.50 per cent gross pa/AER. For customers who want monthly interest the rate is 4.40 per cent gross pa/4.49 per cent AER

The rate for the e-Bond is 4.60 per cent gross pa/AER fixed for one year. For those who wish to have interest paid monthly the rate is 4.50 per cent gross pa/4.49 per cent AER. The e-Bond is available via www.nationwide.co.uk and can be opened by people who have a FlexAccount.

The bonds are available to new and existing customers and the minimum investment is £1, with the maximum investment set at £2 million in one, two and three year bonds and £3 million in the e-Bond.

The Nationwide Members' Summer Bond paying 5.50 per cent gross pa, launched last month, was fully subscribed and closed to new business on June 17th, the building society added in a statement.