Is it time to ditch Nationwide in droves?

Eco_Miser

hethmar wrote: »

But JCB, is that 6% not limited to the amount you can put into it and interest paid on the average amount in there - hence more like 3%? Im sure someone can come along and work it out properly?

If it's similar to the account I have, a current account, not a savings account, you get 6% on £1-£2500 and 0.1% on balances above that. You can pay in and withdraw as much as you like each month, subject to minimum payin. If you keep the balance at £2.5k, as I do, you get the full 6%pa (less tax) for the full month. If you have less in you still get 6%pa on your actual daily balances. After a year the rate drops to 1% below base rate - which will be interesting.

Nick_C

freddysmith wrote: »

NW could lose a lot of customers including me as the recent 6.15% Fixed Rate 1, 2 & 3 year ISA's and Fixed Rate Bonds upto 7% start maturing.
I will be looking around as NW rates do not look good for new money or money from maturing accounts.

I agree, but I think its not just NW that will be affected. Lots of people have 1 year fixes that will mature later this year. As people start moving large sums around when bonds and Regular Saver accounts mature, will the banks be forced to increase interest rates to keep/attract those funds? After all, although base rate is 1%, the banks are paying 6% to 12% on large amounts that they are currently holding.

thrupence

Nick_C wrote: »

I agree, but I think its not just NW that will be affected. Lots of people have 1 year fixes that will mature later this year. As people start moving large sums around when bonds and Regular Saver accounts mature, will the banks be forced to increase interest rates to keep/attract those funds? After all, although base rate is 1%, the banks are paying 6% to 12% on large amounts that they are currently holding.

The market doesn't really work very well for savers, mainly because they're individualised, and there's a lot of inertia because of that. It's always been a buyers market. So the big deposit takers have always determined at what price they'll buy your money.

What ought to have happened, especially in liquidity crunch times such as this, is that savers grouped themselves together and sold their money to the highest bidder, in terms of interest rates and conditions etc.

There's a website that's got on to this idea,( Won't mention it because it charges savers rather than banks ) but I'd be happier with some sort of national savers consortium ( as a start ) which ultimately would charge the purchasers of money (in this case the banks) all the costs of running such a bid and buy system.

That's what markets are supposed to about and would be about if we all bought and sold on open markets, rather than still slaving to this ludicrous situation of big corporations versus little people on the High St.

All the technology is already there for individuals to challenge the largest of institutions in the market place, and ultimately if you've got something someone else wants, make sure you get the best price for it.

Otherwise you're just filling the pockets of useless and irresponsible people who degrade community, culture and society...

srwporter

I am always overdrawn - except in the first week after payday. I have had a Flexaccount for 28 years and always been very smug that interest charges on flexaccount was so low.
This has been creeping up over the last few years.
Jan 07 = 0.62% pm
Jan 08 = 0.79%pm
Jul 08 = 1.02%pm
Feb 09 = 1.38%pm = 17.9%pa!

I have never really benefited from the savings rate, but these overdraft rates are wicked.
I am clearing my overdraft over the next few months so I can move. Priority number one.

Simon Porter

Milarky

Nick_C wrote: »

I agree, but I think its not just NW that will be affected. Lots of people have 1 year fixes that will mature later this year. As people start moving large sums around when bonds and Regular Saver accounts mature, will the banks be forced to increase interest rates to keep/attract those funds? After all, although base rate is 1%, the banks are paying 6% to 12% on large amounts that they are currently holding.

These are the relatively lucky ones I feel. They are a minority - with most savings languishing in millions of no-notice numptyish accounts. Whereas bond holders are moving great lumps of money around. Thus, compared the the rest of 'the market', they are

1) motivated
2) faithless (to the bank that is)

and it is to these behaviours that banks will have to cater by offering half-decent (I didn't say 'decent' note) fixed rates mid year. In other words I suspect the savings 'market' is one in two halves - the larger depositors and the small fish - and we know who will do better out of the coming months...

cvd

I am not sure I believe this story, "Rates War on the Cards for Savers"

http://www.timesonline.co.uk/tol/money/savings/article5779526.ece

DebtSniper

Eco_Miser wrote: »

If it's similar to the account I have, a current account, not a savings account, you get 6% on £1-£2500 and 0.1% on balances above that. You can pay in and withdraw as much as you like each month, subject to minimum payin. If you keep the balance at £2.5k, as I do, you get the full 6%pa (less tax) for the full month. If you have less in you still get 6%pa on your actual daily balances. After a year the rate drops to 1% below base rate - which will be interesting.

I have held one of these accounts for nearly two years. At the end of year one, I phoned A&L to close the account, because it had switched to an abysmal interest rate. They offered to revert to the previous rate (it was about 8% at the time) for another year if I kept the account open. Not a difficult choice.

IIRC they actually closed the account (with the poor interest rate) and instantly reopened it at the old, higher rate. No doubt I will be required to go through the same little charade again at the end of year two. :rolleyes:

leveller2911

I have been a Nationwide customer for 22yrs ,have a bond maturing in late March and also 5K in an ISA Im taking all 22K out in cash until I can find a decent return, the ISA im going to transfer. Ive never transferrd an IAS is it easy to do?.

I think the Nationwide has jumped on the bandwagon reduced rates but increased margins purelly for profit and I don't see how that helps the savers at all.

hethmar

leveller, dont close the ISA account. Find the account you want to transfer it to first and enter the info in the new ISA so that they transfer it over.

JCB2020

DebtSniper - That was exactly my line of thought. Alot can happen in a year so there are bound to be other choices arround when the year is up. If A&L are happy to renew on the same terms, as they did for you, then I will stay with them. If not I will look for the next best deal available.
I think the days of loyalty to a bank are over, I for one will now have no second thoughts about moving accounts when I feel I am getting a raw deal from my current provider.