Compare savings accounts
Find the right savings account for you using the service provided by Experian Ltd
Compare and choosefree member article
Nationwide launches a new 5.3% fixed saver – is it worth going for?
The 30-month bond is a market leader, but it comes with a catch
Matthew is an award-winning journalist, specialising in savings, tax and insurance.
Nationwide is offering a market-leading 5.3% AER on its new fixed-term savings account – but is the rate worth jumping through hoops to get?
The building society's 30-month bond is the top account for three-year fixed savings products. The catch is, you'll first need to open a Nationwide current account.
We scrutinised Nationwide’s latest savings deal to see how it stacks up against the competition.
What does Nationwide's new fixed account offer?
The building society launched a new 30-month fixed-rate savings account paying 5.3% AER. The Member Exclusive Bond is top for deals lasting three years, but there's a catch.
As the name suggests, it's only available to existing Nationwide members – including those with a current account or mortgage. Former Virgin Money customers who are now part of Nationwide can also apply.
You can get started with just £1, but the £10,000 maximum balance could put off savers with bigger nest eggs.
Is the deal worth switching for?
If you were to lock away the maximum £10,000 into Nationwide's fixed bond, the total amount of interest after 30 months would be £1,381.92. But the competitive returns aren't the only perk.
Eligible members could also pocket Nationwide's £100 Fairer Share payment, while new customers can bag a £175 bonus when switching their current account using the Current Account Switching Service.
Nationwide is also a Which? Recommended Provider for both current accounts and mortgages.
But what are the options for savers who don't want to open a current account to unlock a rate? This table shows the top fixed-rate savings accounts, ordered by term and excluding customer-only deals:
| One-year fixed rate | Afin Bank | 1-Year Fixed Term Account | 5.17% | n/a | £1,000 | Mobile app | Yearly |
| Two-year fixed rate | RCI Bank UK | 2 Year Fixed Term Savings Account | 5.30% | n/a | £1,000 | Internet | Monthly, yearly |
| Three-year fixed rate | Afin Bank | 3-Year Fixed Term Account | 5.28% | n/a | £1,000 | Mobile app | Yearly |
| Four-year fixed rate | RECOMMENDED PROVIDER Aldermore | 4 Year Fixed Rate Account | 5.17% | 74% | £1,000 | Internet | Monthly, yearly |
| Five-year fixed rate | Afin Bank | 5-Year Fixed Term Account | 5.40% | n/a | £1,000 | Mobile app | Yearly |
Table notes: rates sourced from Moneyfacts on 5 November 2026 and based on a balance of £5,000. Provider customer score is based on savers' overall satisfaction with the brand and how likely they are to recommend it to others. n/a means sample size was too small for us to generate a provider score.
Savers willing to fix for a similar term to Nationwide's bond won't have to sacrifice much interest. Afin Bank's best three-year fixed bond pays 5.28% AER – just below Nationwide's rate – but allows deposits of up to £200,000, making it a better fit for those with larger savings pots.
If you're willing to fix for a slightly shorter period, RCI Bank UK also pays 5.3% for its two-year account. Five-year bonds currently offer the best deals, with the top account from Afin Bank paying 5.4% AER.
- Find out more: Best savings accounts
Think carefully before fixing for longer
The main advantage of fixing for several years is certainty: your savings are protected from any future rate cuts. Most providers stop at five-year terms, but a few banks offer bonds lasting up to seven years. However, think carefully before locking in for longer.
Once you’ve put money into a fixed account, most providers won’t let you touch it until the term ends. You usually can’t add to the balance either.
In some cases, you can close the account or withdraw early, in exchange for a loss of interest. Penalties typically range between 90 and 365 days.
If you’ve only held the account for a year and face a 365-day penalty, your savings won’t have grown at all. It’s important to weigh up whether a new account could make up for this loss before the end of its term.
- Find out more: What are the different types of savings accounts?
Make money make sense
Reach out to our money experts to discover smarter ways to spend, save and manage your money. Our regular guidance will help the penny drop all year, for £49.
Join Which? Money4 questions to ask before fixing
Think about these four things before opening a new account:
1. Have you got enough cash for a rainy day?
Fixed-rate savings accounts can be a great home for larger savings pots and currently offer some of the best returns on the market. But don't tie up all your cash.
Keep enough in an instant-access account to cover at least three months of essential spending. If you're retired, you may need a much bigger safety net – potentially one to three years' worth of expenses.
If you've opened Nationwide's new fixed bond and prefer to keep all your cash with the same provider, you could open one of the building society's instant-access accounts.
But despite hiking variable rates from 1 December, its top instant-access deals will still lag behind rivals. Its Flex Instant Saver, for example, will rise from 2.3% to 2.5% – half the 5% AER offered by current market leader Cahoot.
2. When will you get your interest?
Fixed-rate accounts can pay interest monthly, annually or when the term ends.
Some add interest to your savings pot, while others pay it into your nominated current account. The latter can provide a handy regular income, but you won't benefit from compound interest as your returns won't be reinvested.
Nationwide's Member Exclusive Bond pays interest on the anniversary of opening and at the end of the term, with returns compounded.
3. What happens when your savings deal ends?
Always check the small print to find out what happens when your fixed-rate account matures.
If you don't give your provider instructions, it may automatically move your money into an easy-access account, transfer it to your nominated current account or lock it away for another fixed term.
For example, if you don't tell Nationwide what to do next at the end of the 30-month term, it will automatically move your savings into an instant-access account paying a lower rate.
To avoid being stuck on a poor rate, make a note of the maturity date or set a calendar reminder for a couple of weeks beforehand. That gives you time to shop around and find a better home for your cash.
4. Could the taxman take a cut of your interest?
A big savings pot earning a generous rate could leave you with an unexpected tax bill.
The personal savings allowance (PSA) lets basic-rate taxpayers earn up to £1,000 in savings interest tax-free each year. Higher-rate taxpayers get just £500, while additional-rate taxpayers have no allowance at all. Any interest above your allowance is taxed at your usual income tax rate: 20%, 40% or 45%.
From April 2027, income tax rates on savings interest are due to rise by four percentage points, potentially increasing your bill further.
So what's the risk for savers who open Nationwide's new 5.3% fix? Let's say you put the maximum £10,000 into the account and don't have any taxable savings elsewhere.
As interest is paid on the account’s opening anniversary, a basic-rate taxpayer will stay within their £1,000 Personal Savings Allowance (PSA), earning £530 in year one, £560 in year two and around £291 in the final six months. Higher-rate taxpayers will pay tax on a small portion of the interest, while additional-rate taxpayers will be taxed on the full amount.
One way to sidestep savings tax is to use an Isa. These products allow you to shelter up to £20,000 a year from tax.
Premium bonds are another tax-free option. You can hold up to £50,000 with NS&I and enter its monthly prize draw, with a top prize of £1m. But the odds of winning any prize are just 21,000 to 1, and your money won't earn interest.
- Find out more: Tax on savings interest explained
