Nationwide 5% 15 month Members Bond

Rudyson

Just seen this on Nationwide's website.

5% Members only 15 month fixed rate. Max £10k

poseidon1

I have just been co-opted into the arms of Nationwide following the merger with Virgin Bank. Will have a word with them to see if qualify.

EDIT

Seems I do qualify, but not for me since there is no monthly interest option.

Hattie627

They have kept it at 5% (same as the May 2025 issue) but reduced fixed term to 15 months (18 months last year). Max amount is £10K (same as last time)

Albermarle

https://forums.moneysavingexpert.com/discussion/comment/82007216#Comment_82007216

Do you remember how long the 2025 offer stayed open ?

Shedman

Handy…wife's got an Atom 2 year fix maturing tomorrow and was wondering where to put it.

friolento

https://forums.moneysavingexpert.com/discussion/comment/82007277#Comment_82007277

I can't remember when it went NLA, but I would not be guided by it as they now have a few million more members, and they will close applications when they have met their funding target.

You do have 14 days to fund the account - but the 15 months start from day of account opening, not date of deposit.

mon3ysav3r

Looks like can hold the 2025 and 2026 versions according to the Nationwide website

"Note - You can only hold one sole or joint Member Exclusive Bond 2026. If you hold a Member Exclusive Bond 2025, you could still qualify for a Member Exclusive Bond 2026."

EDIT - Confirmed, I have opened and funded the 2026 Bond in addition to my 2025 Bond.

Hattie627

https://forums.moneysavingexpert.com/discussion/comment/82007277#Comment_82007277

The 2025 offer was launched on 29th May 2025 and withdrawn from sale on 30th June 2025, so a month. As pointed out, it could be closed earlier this year.

Yorkie1

I've got the 18 months version which ends in December this year. Quite a useful product, particularly as the interest is paid at the anniversary and on maturity in the same tax year so you don't have to worry about tax being reported across two tax years.

But of course when this new version pays out the £63.13 / £1000 deposit interest in 15 months, it will be taxed at 22% if you have already used up your 0% savings allowance (which I have; basic rate tax band).

What sort of ballpark interest rate should I be looking for, for a monthly interest payment, to maximise the amount of interest which would be received before April 27 (and thus at 20% tax), and come out better overall in the wash? About 4.2%?

EthicsGradient

I think you'd need over 4.85% to come out as good as the NW 5%.

With NW, you get 0.78 * 5% = 3.9%

With a monthly account, you get 0.8 * X for 10 months out of 12 (5/6), and 0.78 * X for 2 months (1/6).

which is 0.7967 * X

So break even is .78/.7967 * 5 = 4.89% (AER; maybe very slightly less - compounding is complicated when the tax rate changes - but not much).

masonic

5% taxed at 22% gives a net rate of 3.9%. This is equivalent to earning 4.88% taxed at 20%, but that assumes all of the interest is taxed at 20%, so an account that pays some interest in the next tax year would need to be even closer to 5% for you to break even. In general, for a rate in this ballpark, you'd need a monthly interest option paying 97%+ of the fixed rate paying out in 2027/28.