Nationwide members Exclusive Bond

kev2009

Hi,

Considering opening one of these Nationwide members exclusive bond 1.5% for 18 months and wondered what peoples thoughts were?

I'm thinking this is worth doing as put in 5k and leave it alone for 18 month and get approx £113 interest as opposed to a regular saver which pays a higher rate but is capped on what you can pay each month meaning you don't get much i.e i wouldn't get £113 for example from 1, even paying in £500 a month to some.

I currently have a loyalty savings account with Nationwide which only pays 1.1% so this seems a easy way to open the account as existing member, shouldn't need all the ID stuff and is a better rate.

Thanks

Kev

colsten

You can get a lot more than 1.5% AER if you can fix for 18 months. For example, 1.95% here: https://www.mycommunityfinance.co.uk/apply-savings/S-0020

Just shop around a bit.

NB. I hope you haven't got much in the 1.1% Loyalty Saver. That's a derisory rate. You can even get 1.45% in instant access accounts.

kev2009

Thanks for the reply. I'm not familiar with mycommunityfinance. I've seen others paying more but they are not all fixed rate and some of them i'm unfamiliar with so always a bit weary. The Nationwide one is fixed and is a well known highstreet branch so hence why i was thinking of opening one as the rate is fixed as opposed to variable which could go up or down.

Kev

Zero_Sum

kev2009 wrote: »

Thanks for the reply. I'm not familiar with mycommunityfinance. I've seen others paying more but they are not all fixed rate and some of them i'm unfamiliar with so always a bit weary. The Nationwide one is fixed and is a well known highstreet branch so hence why i was thinking of opening one as the rate is fixed as opposed to variable which could go up or down.

Kev

Why are you so keen on fixed rate? A lot of instant access the rate tends to be fixed for a year as an introductary rate. You get 1.45% from Goldman Sach's Marcus account which is instant access.

colsten

kev2009 wrote: »

Thanks for the reply. I'm not familiar with mycommunityfinance. I've seen others paying more but they are not all fixed rate and some of them i'm unfamiliar with so always a bit weary. The Nationwide one is fixed and is a well known highstreet branch so hence why i was thinking of opening one as the rate is fixed as opposed to variable which could go up or down.

Kev

High Street Banks and Building Societies love people like yourselves as they can make more money out of you. I appreciate you may not have heard of some of the other players - neither have I. So long as they are offering FSCS protection, your money is safe, up to £85K.

eskbanker

Zero_Sum wrote: »

Why are you so keen on fixed rate? A lot of instant access the rate tends to be fixed for a year as an introductary rate. You get 1.45% from Goldman Sach's Marcus account which is instant access.

But only 0.1% of that rate is fixed for 12 months - the other 1.35% is variable and so could go down (or up) at any time. As it happens, they haven't changed the underlying variable rate since the product was launched last year but could do whenever they chose....

EdGasketTheSecond

Only available to open in Branch is a bit of a faff and a novel concept these days. Why wouldn't you be able to open it online; are they trying to make things difficult?

kev2009

Yes, the fact the 1.5% was fixed meant the rate couldn't drop which is what made it look appealing. Plus i'm already with Nationwide so would be easy to walk in to my local branch and open the account as opposed to applying online and then needing to sending any additional ID if required plus the fact that the rate was variable so could change at any point.

Kev

sal_III

Metro bank are high street and offer 1.9% on 18m fix

https://www.metrobankonline.co.uk/savings/products/fixed-term-savings/

The 1.5% from Nationwide is appalling for 18m fix

kev2009

I thought Metro bank were not in a very good position from looking online?

Kev

colsten

kev2009 wrote: »

I thought Metro bank were not in a very good position from looking online?

It doesn't matter as long as you have FSCS protection, which you get with Metro. Up to £85K.