Nationwide 5% 15 month Members Bond

ranciduk

thanks!

I think 6% is unlikely imo

allegro120

https://forums.moneysavingexpert.com/discussion/comment/82010466#Comment_82010466

According to my notes deposits to Nationwide show as next working day, but interest starts accruing from the date deposit is received. I'm not 100% sure that it's correct so I opened this account and funded on Friday, just in case.

mta999

I personally don't think 5% is enough given we may have interest rate rises coming along

Dugal

https://forums.moneysavingexpert.com/discussion/comment/82010524#Comment_82010524

I was thinking of funding this from my premium bond holding after the June draw. However as I risk being close to the higher rate threshold next year, and the premium bond rate is going up for now, I think I will leave my money with premium bonds.

subjecttocontract

https://forums.moneysavingexpert.com/discussion/comment/82010881#Comment_82010881

Is there a fixed rate bond paying more ?

wmb194

https://forums.moneysavingexpert.com/discussion/comment/82010881#Comment_82010881

The maximum deposit is only £10k so as part of a portfolio I think it's pretty good. The closest gilt, TG27 Jul-27, is currently 4.223%.

Section62

https://forums.moneysavingexpert.com/discussion/comment/82010914#Comment_82010914

If there is a belief that rate rises are on the way then a comparison with currently available fixed rate bonds might not be the most helpful approach.

There's at least one easy access account paying the same rate. Currently.

Hattie627

As HRTP, I've reduced my taxable fixed rate cash savings over the last couple of years. Moved the cash gradually into low coupon gilts, mainly 0.125% 31/01/28 and 0.25% 31/07/31. Maxed out on PBs and ISA's. I decided that £10K was worth doing on this Nationwide FR bond (I also have last year's one at 5%, due to mature November 26). May not be the best decision but not going to lose sleep over it. These two Nationwide are now the only taxable FR bonds which I have.

1spiral

It is also worth noting that this account has previously counted as a savings account when looking for qualifying accounts for NW's member bonus. If you deposit 10K and that enables you to qualify for the £100 bonus, that is equivalent to an additional 1% on the bond.

Section62

https://forums.moneysavingexpert.com/discussion/comment/82011104#Comment_82011104

Or meet the £100* savings requirement by putting at least £100 in the 6.5% Flex Regular Saver.

If the objective is to meet the £100 requirement then doing so by depositing £10k in a 5% 15-month fixed rate account is one of the more expensive ways of doing it - and the effective 'additional' won't be as much as 1% because the account is fixed with no access for 15 months, not a year.

(*next year's criteria could be different)