Nationwide launches new Stepped Rate Bond

Nationwide Building Society has announced details of a new four-year Stepped Rate Bond, which offers fixed annual or monthly interest options.

The annual option pays 3.75 per cent gross AER in year one, 4.25 per cent in year two, 4.75 per cent in year three and 5.25 per cent gross in year four.

Accordingly, the society's current three-year Stepped Rate Bond was withdrawn from sale at the close of business yesterday Thursday November 5th.

Andy Hutchinson, Nationwide's head of savings, said the Stepped Rate Bond was "good news" for people who not only want a guaranteed rate of interest, but who also want a rate that increases year after year.

He added: "In this low interest rate environment, it's important to us that we aim to offer savers good value products that last for the long term and our new Stepped Rate Bond is just one example."

Earlier this week, the Bank of England froze interest rates at 0.5 per cent, making it even more crucial for consumers to be getting the most out of savings.

Independent pensions expert Stewart Ritchie called for a reversion to "traditional savings habits", claiming that many people are failing to set money aside for their futures.

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2009-11-06 11:28:51 © Moneyextra.com