Nationwide Building Society launches new fixed rate bonds  - and savers only need £1

Savers who can lock their money away have the chance to earn substantial returns on their money.

Last week, the building society launched new issues of its Fixed Rate Online Bonds and Fixed Rate Branch Bonds paying increased rates.

The new rates are:

• 1 Year Fixed Rate Online Bond – 4.50 per cent AER
• 1 Year Fixed Rate Branch Bond – 4.50 per cent AER

The rates are available for balances of £1 or more and savers can open the Online Bonds via the website, Internet Bank and Banking app while Fixed Rate Branch Bonds can be opened in branch.

All previous Fixed Rate Online Bonds and Branch Bonds, plus the Member Exclusive Bond were withdrawn from sale at close of business on July 18, 2024.

This attractive rate would result in money quickly building up for savers.

For example, someone with £5,000 to put away would earn £225 in interest a year.

Someone with £10,000 would make £450, and the more money someone has to save, the more they will make in interest.

This option is available to millions of savers due to the low deposit rate.

To open an account, savers need to be a UK resident aged 16 or over, with £1 to deposit.

It should be noted that individualshave 14 days to pay money into their account from the date it's opened.

Interest will only start to be paid from the day the Building Society receives funds into the account, so it's a good idea to pay money into the account as soon as possible.

For example, if people don't pay money into your account until day 14 they'll only get interest for 351 days, rather than 365 days.

This account is designed for:

• Savers who are happy to lock away their money for a fixed term
• Savers who are looking for an interest rate that won't change
• Savers who want to open their account in branch.

This account is not designed for:

• Savers who want instant access to their money
• Savers who want to put away money on a regular basis
• Savers who want to apply for the account online.