New 5.5% loyalty savings rate from Nationwide - is this now Britain's best account?

Nationwide Building Society has launched an 18 month fixed-rate account paying 5.5 per cent.

The new 'Member Exclusive Bond' is only available to Nationwide members.

The account was unveiled in the mutual's final results today, alongside Nationwide's £100 'Fairer Share' payment and a £200 member switching bonus.

This is now the best fixed-rate savings bond on the market, beating the top 18-month and one-year fixed-rate accounts on a deposit of £10,000.

Best of the best? Nationwide has launched an 18-month fixed-rate savings account exclusively for members with a rate of 5.5%

Roughly 16million people will be able to get this savings account, in a sign that Nationwide will reward members for their loyalty and retain them as members.

The account can be opened online, using internet banking, in the Nationwide mobile app or in a branch.

To get the account, members needed to have held a Nationwide current account, savings account or mortgage account on 22 May 2024 and at the time of applying.

However, the biggest snag is that the maximum a saver can put in this account is £10,000. A saver tucking away this amount in the account would earn £840.81 in interest at the end of the term.

This account now takes the top spot for an 18 month fixed-rate account on This is Money's best buy tables.

The next best deal is United Trust Bank's 18 month bond which pays 5 per cent.

The best one year-fixed rate bond pays 5.2 per cent and is offered by Access Bank. A saver putting £10,000 in this account would earn £532.57 at the end of the term.

Savers won't be able to withdraw money from the Nationwide account until the 18-month term ends. Interest is paid annually on the anniversary of account opening and maturity.

Andrew Hagger, of MoneyComm,s said: 'It's the highest fixed-rate bond on the market at 5.5 per cent for 18 months.

'It's a nice additional benefit for Nationwide loyal customers although I'm sure some would have liked to see a higher maximum balance than the £10,000 offered.

'Combined with the £100 fairer share payment being made for the second successive year, the overall loyalty package should help deter people switching away from Nationwide to a rival provider in search of a "golden hello" type cash payment.'

> This is Money exclusive: Get 5.78% interest with this 365-day notice account that beats top one-year fixes