Nationwide eSavings rate increased to 4.8% (w.e.f. Sep 1)

isasmurf

No because they have 30 days to implement a rise, unles they state a shorter time period in their T&C.

MiserlyMartin

Oh shoot. I will have to eat humble pie now.

fonesaver

Got this response from NW:

I confirm our interest rates are to rise by 0.25% on September 1st. A letter will be sent to all members with Internet accounts within 30 days of the change.

I have spoken to our Marketing Department who have confirmed we will not be backdating the interest.

I will also log your comments as feedback on our Member Service Site today, so that we can continue to review and improve the service that we offer to our members.

If I can be of further assistance please contact me using this secure messaging service.

Regards,
Jan Picton
Senior Customer Advisor
Nationwide Direct

alanobrien

Pitiful, they really are getting more like a bank every day.

CopperPlate_2

Have to agree with the above. Seems NW is more interested in growing as a bank rather than ploughing the cash back into members accounts through better interest rates. Ah well, we'll have to see what else is on offer.

martyn4764

isasmurf wrote:

No because they have 30 days to implement a rise, unles they state a shorter time period in their T&C.

Hi

Is that a part of the Banking Code, then, or somewhere else?

Thanks

littlesaint

fonesaver wrote:

Got this response from NW:

I confirm our interest rates are to rise by 0.25% on September 1st. A letter will be sent to all members with Internet accounts within 30 days of the change.

Why are they saying this when Isa only goes up by 15% - 20%? I'll definitely start an ISA with NS&I as soon as I've raised £1,000 to start my account.

Heinz

I complained to Nationwide that they'd only increased the rate on my Members' Reward Bond by 0.15% (from 5.05% to 5.2%) and received the following patronising BS reply:

Thank you for your enquiry.

I confirm we consider each change in interest rates very carefully and are always mindful of the effect that this will have on our members. It is also essential that we balance the needs of the business to ensure that we can offer sustainable rates that will continue to give our members long term good value.

Low interest rates occur when the economy is affected by low inflation rates, which is the current situation the UK is facing. Inflation is indirectly linked to the UK Base Rate, which is set by the Bank of England's Monetary Policy Committee (MPC).

In addition to this, we must take into account a range of factors that lie outside our control. We must consider the rates offered by other institutions and the financial impact that any rate changes will have on our business. We do try to minimise rate reductions to ensure we continue to provide excellent value to all our members, whilst managing the business in a responsible manner. It is not necessarily all bad news for savers when interest rates are reduced. For example, when interest rates fall, inflation is usually low as well therefore, the real value of your savings could actually increase.

At Nationwide we are committed to ensuring that all of our members receive benefits from our status as a building society. To demonstrate this point, Nationwide has returned over £3.0 billion to members since 1996, through competitive interest rates.

Choosing to remain a mutual society does not mean that we guarantee to offer the best rate of interest in all sectors of the market all of the time, as this would be impossible for any organisation. However, it does mean that we are committed to providing long-term good value to all members in the form of competitive rates, both now and in the future. We can only deliver long-term value of this kind because we are a building society and, unlike banks, do not have to generate profits to pass to shareholders.

The long-term good value that our accounts offer is clear from the record levels of savings business that we have attracted in recent months. This is supported further, by a recent Which? Report which concluded that "former building societies that have converted to banks generally offer poorer deals than those building societies which remain mutual."

Full details of the new interest rates are available on our website at:

http://www.nationwide.co.uk/savings/rates.htm

Regards,

Julie Abbott
Senior Customer Advisor
Nationwide Direct

Needless to say, they won't be getting any more of my money.

OTOH, A&L effectively did the same thing with their Online Saver A/C - reduced the rate by 0.1% a few days before the August BofE base rate rise and then, triumphantly, raised their rate by 0.25% last week.

Milarky

In addition to this, we must take into account a range of factors that lie outside our control. We must consider the rates offered by other institutions and the financial impact that any rate changes will have on our business. We do try to minimise rate reductions to ensure we continue to provide excellent value to all our members, whilst managing the business in a responsible manner. It is not necessarily all bad news for savers when interest rates are reduced. For example, when interest rates fall, inflation is usually low as well therefore, the real value of your savings could actually increase.

Actually talking about interest rate reductions? What has that to do with any defence of how little they raised rates lately?