Savings alert! Nationwide cut savings rates from 1st March!

amethystcash

Finally fed up with N/W rates so despite being a loyal customer for 20 years on principle and feeling like I have to show my annoyance, I have transferred everything I can out of N/W and will transfer rest as soon as deals mature - I might only be one customer but they've lost over £100k in business. Stopped using regular and esavers and working to move ISAs out too. Only thing left is a bond that has a few months to maturity. I like their flex accounts so am loath to stop using them - but if they continue to treat customers this badly that will be next.

Formerly happy with, now very fed up with N/W customer!

NPowerUser

Nationwide need to protect the bottom line but they seem to be doing it at the expense of savers rather than mortgage holders.

I wonder how many £££millions are going to be withdrawn from the Nationwide as investors seek better rates elsewhere?

I live in a highly populated elderly area and many of them don't have access to the information, like these forums. Its scandalous that a tax free savings account from a mutual can offer such a poor rate.

Lansdowne

The 3% Fixed rate ISA (and related fixed rate offers) is not a bad rate given the present situation. But as you say, only those on the ball and able to switch can take advantage. What they ought to do is to make sure every Nwide saver is alerted in simple terms to the possibility of switching if appropriate.

Don't suppose they will sadly.

bristolleedsfan

Lansdowne wrote: »

The 3% Fixed rate ISA (and related fixed rate offers) is not a bad rate given the present situation. But as you say, only those on the ball and able to switch can take advantage. What they ought to do is to make sure every Nwide saver is alerted in simple terms to the possibility of switching if appropriate.

.

Drawback is that Nationwide BS/ ISA and efficiency :eek: dont go hand in hand, so people would be risking a delay in moving their funds at the end of the fixed rate period. Nationwide have a habit of not receiving ISA transfer out/Current Account switching forms and blaming everyone else except themselves.

Nationwide will be doing a lot of transfer outs at the present time and in the coming months including three of mine, we will see what peoples experiences are :

http://forums.moneysavingexpert.com/showthread.html?t=1522803

evenasus

I think Nationwide are going to wake up eventually, as people withdraw all the money they can.
I've moved £150K during the last 7 months. Hubbie and I still have a 5.75% (not too bad) ISA each and a 3 Year Members Reward (reward? Ha!) Bond, maturing in the next couple of months, at really attractive? Ha! again, 1.6%

Will have to open and ISA each somewhere else in April. But where? is the problem.

Cozworth806

They make a major thing out of being trusted and safe but frankly since I switched to Lloyds for my current account in July and was looking for a mortgage (C&G as well in the end) I forsee my withdrawing everything else and opening my kids a new savings account elsewhere as they are getting pretty well screwed as well. (1.25%!)

mjmal51

Don't worry, they now realise that we are worried about interest rates and have come up with a solution:-
"Internet Banking News We are very mindful of the impact for our savers of the current low interest rate environment. To help savers, on 1 March, we increased the maximum balance limit on e-Savings Plus to £500,000.
Richard Searle
Head Of Electronic Channels
Message updated 1 March 2009"
Isn't that just great?!!! So somebody with £1/2M can now risk it all (-£50,000 guarantee) to get 0.95%.

freddysmith

They must be accepting Monopoly money now if they expect us to fall for that one, time to look in the loft.

Milarky

mjmal51 wrote: »

Isn't that just great?!!! So somebody with £1/2M can now risk it all (-£50,000 guarantee) to get 0.95%.

Erie.. I just logged in, saw that message and was going to post it here with an identical comment! Nationwide can't seriously have thought about the e savings account as any kind of 'savings' pot before posting that non-sequitur of theirs?

bristolleedsfan

mjmal51 wrote: »

Isn't that just great?!!! So somebody with £1/2M can now risk it all (-£50,000 guarantee) to get 0.95%.

Thats the standard E-Savings rate.

By contrast letter from Newbury BS today, stating that following the last two Base Rate reductions of 0.5% x 2 most of its savings rates were reduced on 24th February by 0.5%, if Newbury BS could do that then Nationwide could have done as well.

Clearly Nationwide are saying they dont care if smaller savers withdraw, they are hoping to lure mega balances.