From MoneyWeek · · 1m
Nationwide Launches Top-Rate Savings Bond
Nationwide's new 30-month bond offers 5.3% interest for loyal customers.
In brief
Nationwide's new 30-month bond offers 5.3% interest for loyal customers. Nationwide's 30-month bond pays 5.3% interest for existing members, but tax implications may make ISAs more attractive for higher earners. Originally reported by MoneyWeek.
Nationwide's New Bond
Nationwide launched a member-exclusive fixed-rate savings bond with 5.3% interest.
Eligibility Requirements
Existing Nationwide or Virgin Money customers with accounts opened since November 2 2026 can join.
Account Details
Savers can deposit up to £10,000 with annual interest credited and paid at maturity.
Tax Implications
Tax rates on savings interest rise by four percentage points from April 2027, affecting returns.
“The tax rate on savings interest is rising by four percentage points from April 2027”
ISA Comparison
Two-year and three-year ISAs pay 5.15% interest tax-free, potentially yielding more after tax.
Expert Analysis
Higher earners may get more interest from ISAs despite lower headline rates due to tax benefits.
“Nationwide's 5.30% bond looks attractive on paper, but savers need to consider what they will actually keep after tax”
Tax Calculation Example
A £10,000 deposit in Nationwide's bond earns £1,381.92 gross interest by May 2029.
The takeaway
Nationwide's 30-month bond pays 5.3% interest for existing members, but tax implications may make ISAs more attractive for higher earners.
