Nationwide launches high-paying fixed-rate savings account

Nationwide has introduced a fixed-rate bond for existing customers. Savers may still find a better return by choosing an ISA.

The account pays 5.3% interest, currently the highest rate available on the market.

The building society's new 30-month Member Exclusive Bond is open to existing Nationwide and Virgin Money customers.

You must have held a personal current account, mortgage, savings account, business savings account or loan with either brand since November 2 2026.

"We know too few savers switch providers regularly. That makes the chance to earn a market-leading rate as a loyal customer refreshing, particularly when it comes from a high street brand."

You can put up to 10,000 into the Nationwide bond. Open it on Nationwide's website, through internet banking, or at a branch under the name Member Exclusive Branch Bond Issue 2.

Each person may open only one account, and the required deposit must be made within 14 days of opening it.

Interest is added once a year but paid only when the 30-month term ends. The money remains locked in the bond until maturity.

How does Nationwide's bond compare?

Nationwide's 30-month bond currently pays the highest rate among three-year fixed-rate bonds, according to data from the price comparison site Moneyfactscompare.

Afin Bank and GB Bank each offer 5.28%, while Secure Trust Bank pays 5.27%. All three accounts have FSCS protection.

Nationwide's bond also sits joint-top in the best-buy tables for two-year fixed-rate accounts. RCI Bank UK pays 5.3%, while Afin Bank and GB Bank each offer 5.28%.

The 30-month bond currently offers the highest headline rate, even compared with four-year deals. Market Harborough Building Society's four-year bond pays 5.25%, while Aldermore's equivalent fixed-rate deal pays 5.17%.

"The tax rate on savings interest will rise by four percentage points from April 2027," said James Mackreides, BFIA's deputy digital editor. "That makes it more important for savers to decide whether an ISA suits them better, even if the headline rate is lower."

Could a leading ISA be the better choice?

Nationwide's 30-month bond may offer one of the market's highest rates, but the interest is taxable. If your savings are likely to exceed your tax-free allowances, putting the money in an ISA may work out better.

Calculations from wealth management firm Evelyn Partners show that a 10,000 deposit into Nationwide's 30-month bond on November 3 would generate 1,381.92 in gross interest before tax. The bond would mature in May 2029.

The new savings tax rates announced in the 2026 Autumn Budget will take effect in April 2027. Based on those rates, the tax due in May 2029 would depend on the saver's marginal tax rate:

Swipe to scroll horizontally Source: Evelyn Partners. These calculations assume that tax rates and allowances remain unchanged, the individual stays in the same tax band, and no other interest uses their personal savings allowance.

BFIA research found no 30-month fixed-rate ISAs available for a direct comparison with Nationwide's 30-month fixed-rate bond.

At the time of writing, savers could choose from one two-year fixed-rate cash ISA and three three-year options, all paying 5.15%.

Put the same 10,000 into a two-year ISA paying 5.15% a year, with interest compounded annually, and you'd earn 1,056.52 in tax-free interest after two years.

A three-year ISA opened with 10,000 at the start of the term would produce 1,625.93 in tax-free interest, assuming the same 5.15% annual rate and yearly compounding.

After tax, the two- and three-year fixed-rate ISAs paying 5.15% would leave higher-rate and additional-rate taxpayers with more interest.

David Little, a financial planning partner at Evelyn Partners, said: "Nationwide's 5.30% bond looks attractive on paper, but savers need to consider what they will actually keep after tax."

For people paying the higher or additional rate of tax, a cash ISA with a slightly lower stated interest rate may still produce more money tax-free. Once tax is factored in, the account with the highest advertised rate may not leave you better off.