Nationwide & Portman to Merge!!!

ReportInvestor

You'll get £200 before tax. Chin up .

--Tony--

ReportInvestor wrote:

You'll get £200 before tax. Chin up .

Your right, should look at the bright side.

KerryGold

Dumbass question - when did NW bring in the sign-away thing? My and DH have had a CC and Flexaccount/e-savings with NW. We like the account so that's the main reason but I had also thought of it as a carpet-bagging potential also.

I think we opened it in early 2002 - would we have signed away or not?

Thanks!

P.S. We each opened an 8% regular saver ISA this year with Portman - woohoo!

ED

Portman's 8% Regular Saver ISA was indeed an attractive product - well chosen, KerryGold!

Wonder if the £30 fee to transfer out, on/after its anniversary, will be become an obsolete T+C if the Nationwide merger goes ahead.

Speculator

I think we opened it in early 2002 - would we have signed away or not?

Yes, you have signed away for life.

Mr_Mumble

ReportInvestor wrote:

But think of the future economies of scale Mr. M.

And another potential bonus for Portman members should be that all children ought to be eligible for a windfall since Portman's policy is to make children the first named member on the account.

£200 extra pocket money should ensure a few loyal Nationwide customers for life.

Hmm, note you say Portman members and then Nationwide customers

Economies of scale when the dominant company is more than eight times the size of the purchased company, rather dubious benefit imho. IFAonline are far more cynical on the reasons for the 'merger'.

I'm a privatise 'em kind a guy but I don't see how this tie-up is good for mutuality. The largest mutual (by a wide margin) joining forces with the third largest (which has recently been on a takeover binge) means less choice for consumers.

edda wrote:

Call me a pessimist - but look at what happened to the Halifax.
Short term windfalls will be wiped out by lower rates of interest very quickly.
.

Hi edda, sorry I don't understand this comment. Halifax as part of HBOS PLC offer regular savers 7% & 10%, a current account pays 5.12% while the companies fixed rate accounts are the market leaders for both standard deposit and ISAs. Other than Smart Account (6th highest rate for an easy access childrens account according to moneyfacts) there doesn't seem to be a single other truly competitive Nationwide savings account - compared to Halifax their savings products are a joke. Also, Halifax members who've held their shares through the HBoS merger are sitting on a lump sum of more than £3,000 and have been getting dividends every year.

ReportInvestor

Mr_Mumble wrote:

Hmm, note you say Portman members and then Nationwide customers

Just typing too quickly, don't read anything in it.

Economies of scale when the dominant company is more than eight times the size of the purchased company, rather dubious benefit imho.

Please get your facts right about the relative sizes before passing judgement.

In addition, the location of the Portman branches is key IMHO.

IFAonline are far more cynical on the reasons for the 'merger'.

IFA Online
"...., ironically, by making what many see as a great play to secure its place in the industry, it may also face questions over how to maintain the same marketing policies in place as it adds members whose financial needs are radically different from the current bulk of its membership...."



ReportInvestor
Do they actually pay people at IFAOnline to write such utter garbage?

ED

Mr Mumble wrote : "Other than Smart Account (6th highest rate for an easy access childrens account according to moneyfacts) there doesn't seem to be a single other truly competitive Nationwide savings account - compared to Halifax their savings products are a joke."

Agreed, Nationwide pay adult savers poor rates. Perhaps a large portion of the membership has remained loyal due to strange reasoning such as considering Nationwide more 'genteel' or officious than smaller more provincial building societies. I believe many Portman members are likewise unwisely loyal – or some of them are too rich to expend time seeking better rates elsewhere. Discerning customers are less blinkered, valuing efficiency, fairness and competitive rates, which many smaller building societies provide superbly.

ReportInvestor

ED wrote:

valuing efficiency, fairness and competitive rates, which many smaller building societies provide superbly.

Who do you have in mind, ED?

National Counties? Stafford Railway? Others?

Speculator

ReportInvestor wrote:

Question 7 could be read as referring to an previous form or a new one.

I hope you are right. Here is a reference to literature sent out to Staffordshire savers when Portman took over the Staffordshire in 2003 and is the basis for my previous advice.

IA link

That couldn't be more explicit.

Just spoke to another chap at Lambeth Head office. He confirmed that as long as the account is registered to receive gross interest, the merger bonus will be paid gross also and no need to send in an additional form.

I wonder if the Nationwide/Portman merger will follow along the same lines?