Nationwide International has launched a savings account called Lifetime Guarantee, offering interest of 6.6% in the first year (6.4% for monthly interest), followed by a guaranteed link to the Bank of England base rate.
The offshore subsidiary of Nationwide Building Society is offering the account to both new and existing customers, with a minimum deposit of £1,000 and a maximum balance of £2m.
While there is no access to the money in the first year, thereafter six penalty-free withdrawals per financial year are permitted (30 day interest penalty for any additional withdrawals beyond this).
After the first year the account will pay 0.3% below the Bank of England base rate (0.65% below for monthly interest) until 1 January 2011, after which it guarantees to be no lower than 1% below base rate (1.35% for monthly interest).
Commenting on the launch, Carl Gandy, managing director of Nationwide International, said: “For people who lead busy lives, constantly switching accounts can be extremely inconvenient and frustrating. We believe most people want a consistent good rate of interest and with the Lifetime Guarantee account savers can enjoy just that.”
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