Insurance

Loans and Financing

Financial Services

Date issued: 29 Jul 2010

Nationwide Building Society: www.Nationwide.co.uk

Nationwide Building Society today announces new interest rates for a selected number of its savings accounts.

Fixed Rate Bonds¹, e-Bonds² and Stepped Rate e-Bond - changes come into effect on Friday 30 July 2010.

The new rates for annual interest options for balances of £1 or more will include:

• Six-month e-Bond paying 1.75% gross, 1.76% AER*
• One-year Fixed Rate Bond and e-Bond paying 2.25% gross p.a./AER*
• 18-month Fixed Rate Bond and e-Bond paying 2.50% gross p.a./AER*

• Two-year Fixed Rate Bond and e-Bond paying 3.25% gross p.a./AER*
• Three-year Fixed Rate Bond and e-Bond paying 3.75% gross p.a./AER*
• Four-year Fixed Rate Bond paying 4.00% gross p.a./AER*
• Five-year Fixed Rate Bond and e-Bond paying 4.10% gross p.a./AER*

The four-year Stepped Rate e-Bond can be opened with a minimum deposit of £5,000 and pays 2.50% gross p.a./AER* fixed (year one), 3.50% gross p.a./AER* fixed (year two), 4.50% gross p.a./AER* fixed (year three) and 5.50% gross p.a./AER* fixed (year four).

Monthly interest options are available for all Fixed Rate Bonds, e-Bonds and Stepped Rate e-Bonds.

The current Fixed Rate Bonds, e-Bonds and Stepped Rate Bond will be withdrawn at the close of business on Thursday 29 July 2010.

Fixed Rate ISAs¹- changes come into effect on Friday 30 July 2010.

The new rates for annual interest options for balances of £1 or more will include:

• One-year Fixed Rate ISA paying 2.25% gross p.a./AER*
• Three-year Fixed Rate ISA paying 3.75% gross p.a./AER*
• Four-year Fixed Rate ISA paying 4.00% gross p.a./AER*

Monthly interest options are available for all Fixed Rate ISAs.

The current one-, three- and four-year and 18-month Fixed Rate ISAs will be withdrawn at the close of business on Thursday 29 July 2010.

Champion ISA - changes come into effect on Sunday 1 August 2010.

As a result of interest rate movement on some competitors' cash ISAs, the interest rate of Champion ISA will be 2.44% gross p.a., 2.34% AER* variable for balances over £1,000. Interest is paid annually.

Champion ISA tracks the average rate offered by the top five branch-based cash ISAs from a basket of eight competitors³. Until 30 June 2011, a fixed introductory bonus of 1.35% gross p.a. is then added on top of the core rate of 1.09% gross p.a. for balances of £1,000 or more. So when there is movement in the interest rates of the basket of eight competitors' branch-based cash ISAs, Champion ISA's interest rate will change accordingly.

Even without the fixed bonus, Champion ISA is competitive because other providers' introductory bonuses are included when calculating Champion ISA's core interest rates. A fixed bonus is then added on top to help savers in the current low interest rate environment.

Nationwide is committed to writing to customers to remind them when their fixed bonus is due to end.

Notes to editors

1	Fixed Rate Bonds and Fixed Rate ISAs are only available from Nationwide branches.
2	Nationwide e-Bonds are only available online through a FlexAccount and are operated through Nationwide's Internet Bank.
3	Champion ISA Champion ISA's core rate is based on the average of the top five paying branch-based cash ISAs (including bonuses) published on www.moneyfacts.co.uk from Barclays, Halifax, HSBC, Lloyds TSB, Northern Rock, NatWest, Royal Bank of Scotland and Santander. Rates are calculated on the second Monday of each month and come into effect from the 1st of the following month. Excluded accounts: Cash ISAs that cannot be opened and/or operated through branch. Fixed rate cash ISAs. Fixed term cash ISAs. Regular savings cash ISAs. Cash ISAs that do not accept transfers of existing ISA funds. Cash ISAs no longer available for sale. Cash ISAs linked to an investment product. Cash ISAs specifying particular age restrictions. Included accounts: Instant access cash ISAs that can be opened and operated in branch. Limited access cash ISAs that can be opened and operated in branch. Notice cash ISAs that can be opened and operated in branch. Current account linked cash ISAs that can be opened and operated in branch. Availability: in branch. Withdrawals: one penalty-free withdrawal each tax year. Further withdrawals in the same tax year are subject to 60 days' notice or loss of interest. Deposits: unlimited, subject to annual cash ISA allowance. Min. opening balance: £1,000. Min. operating balance: £1. Max. operating balance: subject to annual cash ISA allowance. Balances below £1,000 will currently receive 0.25% gross p.a./AER* variable.
*	AER stands for Annual Equivalent Rate and illustrates what the interest rate would be if interest were paid and compounded once each year. The gross rate of interest is the interest rate payable before any income tax is deducted (if customers do pay tax).
-	Fixed Rate ISAs, Fixed Rate Bonds, e-Bonds and Stepped Rate e-Bond The products may be withdrawn without notice. No part withdrawals allowed. Early closure Term of bond Five years Four years Three years Two years One year or less Loss of interest 365 days 320 days 270 days 180 days 90 days
-	Applications are required for all products. Terms and conditions are available on request.

INTEREST RATES: FIXED RATE BONDS AND E-BONDS - CORRECT ON 30 JULY 2010

Six-month e-Bond (annual)	AER	Gross p.a.	Net p.a.
£1+	1.76%	1.75%	1.40%
Six-month e-Bond (monthly)	AER	Gross p.a.	Net p.a.
£1+	1.71%	1.70%	1.36%
One-year Fixed Rate Bond and e-Bond (annual)	AER	Gross p.a.	Net p.a.
£1+	2.25%	2.25%	1.80%
One-year Fixed Rate Bond and e-Bond (monthly)	AER	Gross p.a.	Net p.a.
£1+	2.22%	2.20%	1.76%
18-month Fixed Rate Bond and e-Bond (annual)	AER	Gross p.a.	Net p.a.
£1+	2.50%	2.50%	2.00%
18-month Fixed Rate Bond and e-Bond (monthly)	AER	Gross p.a.	Net p.a.
£1+	2.48%	2.45%	1.96%
Two-year Fixed Rate Bond and e-Bond (annual)	AER	Gross p.a.	Net p.a.
£1+	3.25%	3.25%	2.60%
Two-year Fixed Rate Bond and e-Bond (monthly)	AER	Gross p.a.	Net p.a.
£1+	3.25%	3.20%	2.56%
Three-year Fixed Rate Bond and e-Bond (annual)	AER	Gross p.a.	Net p.a.
£1+	3.75%	3.75%	3.00%
Three-year Fixed Rate Bond and e-Bond (monthly)	AER	Gross p.a.	Net p.a.
£1+	3.71%	3.65%	2.92%
Four-year Fixed Rate Bond (annual)	AER	Gross p.a.	Net p.a.
£1+	4.00%	4.00%	3.20%
Four-year Fixed Rate Bond (monthly)	AER	Gross p.a.	Net p.a.
£1+	3.97%	3.90%	3.12%
Five-year Fixed Rate Bond and e-Bond (annual)	AER	Gross p.a.	Net p.a.
£1+	4.10%	4.10%	3.28%
Five-year Fixed Rate Bond and e-Bond (monthly)	AER	Gross p.a.	Net p.a.
£1+	4.07%	4.00%	3.20%

INTEREST RATES: STEPPED RATE BOND - CORRECT ON 30 JULY 2010

Four-year Stepped Rate e- Bond (annual)	AER	Gross p.a.	Net p.a.
Year 1 (from opening date to 29 July 2011)	2.50%	2.50%	2.00%
Year 2 (from 30 July 2011 to 29 July 2012)	3.50%	3.50%	2.80%
Year 3 (from 30 July 2012 to 29 July 2013)	4.50%	4.50%	3.60%
Year 4 (from 30 July 2013 to maturity)	5.50%	5.50%	4.40%
Four-year Stepped Rate e-Bond (monthly)	AER	Gross p.a.	Net p.a.
Year 1 (from opening date to 29 July 2011)	2.48%	2.45%	1.96%
Year 2 (from 30 July 2011 to 29 July 2012)	3.45%	3.40%	2.72%
Year 3 (from 30 July 2012 to 29 July 2013)	4.49%	4.40%	3.52%
Year 4 (from 30 July 2013 to maturity)	5.48%	5.35%	4.28%

INTEREST RATES: FIXED RATE ISAS - CORRECT ON 30 JULY 2010

One-year Fixed Rate ISA (annual)	AER	Gross p.a.
£1+	2.25%	2.25%
One-year Fixed Rate ISA (monthly)	AER	Gross p.a.
£1+	2.22%	2.20%
Three-year Fixed Rate ISA (annual)	AER	Gross p.a.
£1+	3.75%	3.75%
Three-year Fixed Rate ISA (monthly)	AER	Gross p.a.
£1+	3.71%	3.65%
Four-year Fixed Rate ISA (annual)	AER	Gross p.a.
£1+	4.00%	4.00%
Four-year Fixed Rate ISA (monthly)	AER	Gross p.a.
£1+	3.97%	3.90%