Banking/Savings Section

Nationwide Pays An Excellent Fixed (1 & 2 Year) 6.05% On ISA Bonds

June 2007

The Nationwide Building Society has just introduced two excellent 1 and 2 year fixed ISA bonds paying 6.05% tax-free.

Quick Facts

• The two bonds are open to both new and existing customers
• Minimum investment is £1, maximum is £3,000 which is also the maximum cash allowed to be invested in an ISA
• Can transfer money in to the bonds from other ISA accounts including those held at other banks/building societies

Which Bond Is Best – 1 or 2 Year

Always a hard question to answer without knowing exactly what interest rate movements will be over the coming year. But, flexibility is a virtue when dealing with financial products so to us the 1 year bond looks slightly more attractive at present.

This is especially the case as interest rates have been rising steadily over the last year or so. Interest rates tend to move in trends lasting several years so higher rates next year seem slightly more probable than lower rates.

See Also

• IceSave - 6.05% Guaranteed Instant Access On A Savings Account - It's Hard To Beat
• List of Savings Accounts