Nationwide increases savings bond interest rates

Nationwide Building Society has increased the savings interest rates available on its two and three-year fixed-rate bonds and e-bonds.

A rate of 3.5 per cent is to be paid on the two-year fix, rising to four per cent for the three-year option.

The lender has also announced the launch of a new three-year fixed-rate Isa, which allows transfers-in and pays a rate of four per cent over the three year period.

Robin Bailey, director of savings and investments at Nationwide, said the rate rises are "good news for savers" looking for a guaranteed rate of return in the continued low interest rate environment.

He added: "[We] would always urge consumers to save but the most recent research from the Nationwide Savings Index shows that 21 per cent of consumers are still not saving anything at all. Hopefully these increased rates will encourage more people to do so."

Earlier this week, Lloyds TSB launched a 5.375 per cent fixed-rate corporate bond designed specifically for retail investors.

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2010-06-11 13:53:16 © Moneyextra.com