Disappointing Nationwide?

baby_boomer

Anyone else been disappointed by our favourite mutual lately?

Surprisingly low savings rates given that there are no shareholders to pay?
Flex account 0% interest?
Overseas cash no longer charge free in some countries?
Surprised that their credit rating has been downgraded by Moody's and S&P?

The silly moos have been lending to 1/3 of their long term borrowers at a bargain basement 2.5% :eek: because they promised to charge no more than 2% above base rate.

A "mutual benefit" for a select few mortgage members.

A millstone for the rest of us second class members and a competitive nightmare for the Nationwide bosses .

This millstone is so huge & long term that we will just have to get used to poor rates.

If you are going to the AGM in July, ask the board about it. And ask them not to make any future PR "gestures" which will tie their hands and disadvantage other members unfairly since it goes against the "spirit of mutuality".

Observer - some background detail about Nationwide's error

will-in-estoril

At least I'm not the only one who has recognised that Nationwide is no longer proud to be different!

I've posted a few threads already for good measure!

pbw

baby_boomer wrote: »

Flex account 0% interest?.

current accounts are not meant for saving anyway, they are for everyday banking, also, most current accounts pay minimal interest

baby_boomer wrote: »

Overseas cash no longer charge free in some countries?

.

still the cheapest way to use your card abroad

baby_boomer wrote: »

This millstone is so huge & long term that we will just have to get used to poor rates.

if rates are low, vote with your feet and take your money to a place who will beat nationwide....

hope this post does not sound rude, all i'm saying is, if an institution is that bad, they will lose a lot of business very quickly!

baby_boomer

You aren't rude. You're debating healthily. I'm sure you're right that poor rates will eventually result in less business - although Nationwide's anti-bank PR campaign may mean that it loses money less rapidly than it deserves?

After all - everyone understands "no shareholders" but next to no-one understands the long term cost of this mortgage giveaway.

pbw wrote: »

if rates are low, vote with your feet and take your money to a place who will beat nationwide

Fortunately the cynic in me doesn't trust any institution and so my Nationwide money is happily in a never to be repeated 6.15% 3 Year Fixed Rate Cash ISA where it is going to stay until the end of the term .

Fixed rates are the only way to keep both banks and mutuals honest IMHO.

jack_spratt_2

As Victor Meldrew would say "I don't believe it!", I actually agree with baby_ boomer :beer: for a change !! I think I better go and have a lay down .

opinions4u

baby_boomer wrote: »

Anyone else been disappointed by our favourite mutual lately?

I have never believed the "mutuality is better" theory, so no.

Surprisingly low savings rates given that there are no shareholders to pay?

No. They have totally hamstrung themselves with their tracker policy on their mortgage SVR. With the benefit of hindsight, madness!

Flex account 0% interest?

They were one of the first to pay competitive interest on current account. Again, replacing income lost with the mortgage rate policy.

Overseas cash no longer charge free in some countries?

Again, replacing income lost with the mortgage rate policy.

Surprised that their credit rating has been downgraded by Moody's and S&P?

No surprise that a company who's asset base is 90%+ exposure to the UK housing market is treated such way. Remember that 30% of their funding is wholesale too.

The silly moos have been lending to 1/3 of their long term borrowers at a bargain basement 2.5% :eek: because they promised to charge no more than 2% above base rate.

Yup, that's the main cause of the problem.

baby_boomer

jack_spratt wrote: »

I actually agree with baby_ boomer :beer: for a change !.

That is a first .

pbw wrote: »

current accounts are not meant for saving anyway, they are for everyday banking, also, most current accounts pay minimal interest

My Lloyds TSB account costs me £144 pa in charges but I get £82 off my AA joint membership, Free travel insurance pa x2, free mobile phone insurance x2 and credit card theft notification for my family = £20+.

And it pays me interest on £7K at an average of 3% which beats ALL internet savings instant access accounts.

And it gives me extra security when shopping online.

So why would I want to bank with Nationwide?

Maybe it will be Co-Op / Britannia that will fly the mutual flag with more elan?

Joe_Bloggs

Take out a mortgage today with Nationwide and you may end up on the SMR rate (3.99% variable) as opposed to the BMR rate (2% + BoE base) = 2.5% at present.
They may find it difficult to compete on savings and mortgage rates with the state supported banks.
J_B.

caveat_emptor

baby_boomer wrote: »

Anyone else been disappointed by our favourite mutual lately?

Nationwide has been operating as a mutual in name only for some time. The members are getting no better deals than the banks offer, so where are the mutual benefits? The directors have always gone to great lengths to proclaim the benefits to members in remaining mutual. I wonder how they will justify this at the next AGM, or maybe they won't bother and continue to rely on the apathy factor.