Nationwide has announced a series of new bonds and Isas at fixed rates of one per cent over three years, and 1.5 per cent over five years.
This makes Nationwide the only high street provider to offer a five-year bond or fixed-term Isa.
The three-year fixed-rate bond is being offered at 1 per cent gross, while the five-year bond has a fixed rate of 1.5 per cent gross.
The three-year fixed-rate Isa offers a tax-free rate of 1 per cent, and 1.5 per cent over a five-year fixed-rate term.
Each account requires a minimum investment of £1, and monthly interest options are available for income savers.
Customers are able to move their existing Isa balances into Nationwide’s fixed rate Isas, if they so wish.
“We know many of our members like the reassurance of a guaranteed interest rate over a longer period of time so they don’t need to keep moving their money,” said Tom Riley, Nationwide’s head of savings.
“The launch of our new three and five-year fixed rate bonds and ISAs means we have a full range of terms available for those savers who prefer to put away their money for a set period of time in return for a competitive rate. It is another demonstration of how we continue to offer long term value to our members.”
While the fixed-term ISA rates are slightly above the current market average, they are dwarfed by the rising rate of inflation, which hit 1.8 per cent in January.
All four fixed-rate accounts can be opened in Nationwide branches across the UK, while existing members can also sign up to them online or via the mobile banking app.
“These ISA and bond interest rates are relatively competitive in comparison to the rest of the market place, particularly where clients prefer a reputable branch-based provider, as opposed to going online,” said Fiona Harris, a financial planning consultant at Prosser Knowles Associates Limited.
“If you look at where the FTSE was around 10 -15 years ago and bond rates compared to the FTSE now, it is clear the interest rates are falling well below the five to seven per cent interest rates previously available on fixed rate bonds and cash ISAs.”