Nationwide - who are they working for

george-ddd

All the banks are dropping their rates. They seem to be acting together. So much for competition. A cartel perhaps?
Anyway, the Nationwide seemed to be relatively unaffected by exposure to sub prime bonds, and were seen as one of the safer banks when others were going to the wall. I'm sure I read that they took a lot of the Northern Rock savings
I think what I'm trying to say is that I believe the Nationwide has money to lend to Mortgage customers, but the Nationwide is owned by its members, savers and borrowers, and the majority are savers. We lend our money to the Nationwide, and expect the Society to lend it out and from the profits pay us our interest. It seems to me that we are getting a pretty poor return for our investment. If the other banks are struggling for funds, then surely from simple Supply and Demand, the Nationwide could charge a premium on its loans - and get a better return for its savers.
Is there any way for the members to voice their views and get the board to achieve a better return for savers.

bristolleedsfan

george-ddd wrote: »

Is there any way for the members to voice their views and get the board to achieve a better return for savers.

Vote with their feet/click elsewhere and take their savings elsewhere. Many of us have already moved our e-savings cash out, mine went to Abbey instant saver 2 ( 3.50% branch access)

Baldur

bristolleedsfan wrote: »

Vote with their feet/click elsewhere and take their savings elsewhere. Many of us have already moved our e-savings cash out, mine went to Abbey instant saver 2 ( 3.50% branch access)

Agreed, mine is now sitting very comfortably in my Egg savings account at 6.3% fixed until next October.

john_s_2

After the appalling treatment I received from them when I opened an ISA with them nearly a year ago I'll be moving my cash out of there as soon as the one year is up on a point of principle! (Unless their rate is a table-topper of course, I'm not that principled ;-)

opinions4u

george-ddd wrote: »

All the banks are dropping their rates. They seem to be acting together. So much for competition. A cartel perhaps?
No, Clearly market forces impacted by the BofE.

Anyway, the Nationwide seemed to be relatively unaffected by exposure to sub prime bonds
Although they do own UCB and their write down for the first three quarters of 2008 exceeded their profits.

and were seen as one of the safer banks when others were going to the wall.
They very possibly are, but how do we know? They raise 30% of their funds from wholesale markets. If that dries up, how safe are they?

I'm sure I read that they took a lot of the Northern Rock savings
In to high rate fixed bonds that have all matured

I think what I'm trying to say is that I believe the Nationwide has money to lend to Mortgage customers, but the Nationwide is owned by its members, savers and borrowers, and the majority are savers.
They would probably like to reduce their reliance on wholesale funding and fixed rate bonds and lend a little less in current market conditions.

We lend our money to the Nationwide, and expect the Society to lend it out and from the profits pay us our interest.
While ensuring your funds are safe as houses.

It seems to me that we are getting a pretty poor return for our investment.
There is a price for security.

If the other banks are struggling for funds, then surely from simple Supply and Demand, the Nationwide could charge a premium on its loans - and get a better return for its savers.
That would attract borrowers more likely to default and make Nationwide a less stable institution. It would also mean they would attract fewer borrowers which would mean they need your money less.

Is there any way for the members to voice their views and get the board to achieve a better return for savers.

Letters to the board.
Attendance at the AGM.
Letters in the newspapers.
Walk with your feet.

Do you want your money in a safe institution, or do you want them to "go Icelandic"?

RayWolfe

john_s wrote: »

I'll be moving my cash out of there as soon as the one year is up on a point of principle! (Unless their rate is a table-topper of course, I'm not that principled ;-)

Yea! I have the same "principled" views about Abbey!

bristolleedsfan

john_s wrote: »

(Unless their rate is a table-topper of course

There is as much chance of that happening as the Lib Dems being top of the opinion polls. :rotfl:

maypole

I didn't have a nationwide account, but just as a matter of interest I have just opened a Northern Rock e account paying 3.65%. I applied on line yesterday and it is up and running today.

I will aslo be transferring ISAs from B&B to NR they are paying 4% for a fix. It could be withdrawn any time though.

bristolleedsfan

maypole wrote: »

I didn't have a nationwide account, but just as a matter of interest I have just opened a Northern Rock e account paying 3.65%. I applied on line yesterday and it is up and running today.

quote]


Dont be suprised if that rate falls in a few weeks time as the rate doesnt reflect the last base rate decrease. NR playing the same game as it always has done it delays its rate decreases so that people put money into it not realising that the rate is due for a reduction.

maypole

BU*GER:mad:

maypole

bristolleedsfan wrote: »

maypole wrote: »

I didn't have a nationwide account, but just as a matter of interest I have just opened a Northern Rock e account paying 3.65%. I applied on line yesterday and it is up and running today.

quote]


Dont be suprised if that rate falls in a few weeks time as the rate doesnt reflect the last base rate decrease. NR playing the same game as it always has done it delays its rate decreases so that people put money into it not realising that the rate is due for a reduction.

YES! the paperwork came today and said that the future rate will drop:mad:

However the money I am putting in there was from a low paying lloyds tsb account so unless it goes below that...........:rolleyes: