Nationwide 1yr & 2yr Fixed E-Bond now 7%

freddysmith

Having recently put money into the Fixed E-Bond at 6.6% they have just increased this today to 7%. Might transfer some more now.

http://www.nationwide.co.uk/savings/e-bond/introduction.htm

sorcerer

Nice, i'll be opening another one of these soon then. :T

mutley74

me too..saves me the bother of having to transfer funds to the ICICI bank account!

derrick

Needs a Flexaccount to open
"To open an e-Bond you need to have a Nationwide Current Account.

Hungerdunger

At the risk of cutting off my nose to spite my face, I'm not investing a penny more with them until they have completed the transfer of an ISA which has been ongoing since 8 April, and for which they've been holding a cheque from the previous Building Society for 7 weeks. Disgraceful. (Sorry but I need to get it off my chest from time to time)

codetown

Guys,
I opened an ebond 1 year with Nationwide 20 days ago and is at 6.6%.
The T&C say that if you close it in the time window "less than 1 year remaining" you will loose 90 days interest.
If I close it now, will I simply loose all the interest I should have gained from them? I am considering closing the old bond down and opening a new one at the increased rate!

Speculator

You've not earned enough interest to pay the 90 day interest penalty. Therefore, they will take the remaining 70 days interest penalty from yor capital.

If you invested £1000 & assuming you are a non-taxpayer, you will end up with approx £987.34.

Speculator

also, see this thread...

http://forums.moneysavingexpert.com/showthread.html?t=954469

codetown

Speculator wrote: »

You've not earned enough interest to pay the 90 day interest penalty. Therefore, they will take the remaining 70 days interest penalty from yor capital.

If you invested £1000 & assuming you are a non-taxpayer, you will end up with approx £987.34.

But surely they cannot ask you to pay a penalty on interest not earned!!!
I would not believe that! The T&C is not clear on this point... but I would not be ready to believe that.

ctdctd

codetown wrote: »

Guys,
I opened an ebond 1 year with Nationwide 20 days ago and is at 6.6%.
The T&C say that if you close it in the time window "less than 1 year remaining" you will loose 90 days interest.
If I close it now, will I simply loose all the interest I should have gained from them? I am considering closing the old bond down and opening a new one at the increased rate!

It's not worth it - say £10,000 at an extra 0.4% will give you £32 after basic rate tax.
Even if they only deduct 20 days interest from your 6.6% bond, you will lose about £29.
So £3 per £10,000 - not worth the hassle IMHO

freddysmith

I agree with ctdctd above, I guess we all want the best rate and who knows if next month its 7.5%. I opened a fixed bond at 7% today and will open another as these rates are better than some ISA's, even after deducting 20% tax (5.6% in this case).