Nationwide building society has launched a savings account paying 5.3% fixed interest, described as market-leading, available exclusively to its more than 19 million members. The Member Exclusive Bond requires a 30-month commitment, with deposits ranging from £1 to £10,000. A saver putting in the maximum amount would receive £1,381 in interest over the term.
The launch came just before the Bank of England raised its base rate to 4% on Thursday. Nationwide said the fixed-rate account reflects its commitment to reward existing members for their loyalty. The account can be opened at branches, online and through the Nationwide app, though money can only be paid in during the first 14 days after opening.
Industry experts believe the 5.3% rate will remain attractive even after the base rate increase. Katie Horne at savings platform Flagstone said: '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.' The rate currently sits on a par with the top-paying fixed-rate savings accounts over two and three years.
The bond comes with strict conditions. Once opened, money cannot be accessed until the term ends, making it unsuitable for cash savers might need soon. Only one account per saver is permitted, and applicants must be aged 16 or over and have held a qualifying Nationwide or Virgin Money account since at least 2 November this year.
For savers, the account offers a fixed return with no risk of rate cuts over 30 months, though it locks away capital for the entire period and offers no access to funds during that time.