Nationwide Windfall

alared

http://www.thisismoney.co.uk/savings-and-banking/ask-an-expert/article.html?in_article_id=496233&in_page_id=111

In the highly unlikely event of the Nationwide demutualising,how much is the minimum you would have to keep in your account to benefit and receive a windfall.

At the moment I`ve got a fiver with them mainly because of their lousey,appalling saving rates.

For a society that constantly beats the mutual drum, claiming they have no shareholders to pay, and how members are better off because of this,their rates are about the worse you can get.

FATHEROFTWO_2

It used to be £100.Not sure if its changed

apt

Some of Nationwide borrowers are on very good rates. The Flexaccount also has its advantages - no commision for use abroad or in foreign currency and easy money to be gained by transferring direct debits. Since none of the demutualised building societies have survived without takeovers and/or taxpayer bailouts and Nationwide has played a vital role in rescuing weaker building societies I am very glad has not gone down the path suggested by the OP and has next to no chance of doing so.

opinions4u

alared wrote: »

http://www.thisismoney.co.uk/savings-and-banking/ask-an-expert/article.html?in_article_id=496233&in_page_id=111

In the highly unlikely event of the Nationwide demutualising,how much is the minimum you would have to keep in your account to benefit and receive a windfall.

£100 would make you a voting member.

How they choose to dsitribute any windfall would be identified in the voting papers. Those that took the inspired and successful route of demutualisation paid the windfalls to the voting members, presumably thinking that such an incentive may increase the likelihood of a yes vote.

At the moment I`ve got a fiver with them mainly because of their lousey,appalling saving rates.

A typical pay out to non-voting members in other demutualisations was 4% of their balance. So you'd get 20p if this was repeated.

For a society that constantly beats the mutual drum, claiming they have no shareholders to pay, and how members are better off because of this,their rates are about the worse you can get.

But perhaps their business model is slightly more successful than Bradford and Bingley, HBOS, Icesave etc.

Basically they've hamstrung savers in order to fulfil contractual obligations to their mortgage customers (who are also members) and effectively propped up Dunfermline, Cheshire and Derbyshire on behalf of HM Government. But they've not been a drain on the taxpayer.

EarthBoy

I don't think there's a legal minimum, but practically you need to keep £100 in. This is the minimum amount needed to get you voting rights, and only voting members have ever received a payout previously. If you can't vote, what incentive have they got to pay you anything? Answer: none.

Realistically, you are talking about something that is unlikely ever to happen anyway, so I wouldn't lose any sleep over it.

D1zzy

When I opened my Nationwide accounts a couple of years ago I had to sign something to say that any windfalls would go to charity.

Zazie

Yes -see the link at the top of this thread.

alanq

apt wrote: »

The Flexaccount also has its advantages - no commision for use abroad or in foreign currency...

There was a change recently. "We will pass on a Visa charge for foreign transactions outside of the Visa Europe Region."

http://www.nationwide.co.uk/current_account/account_benefits.htm