NATIONWIDE treats its members like dirt....

Wendolin

They must do - I find this hard to believe

My pet hate is savings accounts that promise you the best interest rates and surreptitiously reduce them. Alright they send you notes from time to time telling you they are changing their rates but how many of us have time to keep checking and changing to another account or provider...

My daughter is really cheesed off with the Nationwide Building Society who promised her a members only ISA that would provide their best interest rates at all times - well that is what they said when she took it out several years ago. When she received her statement this year their " Members` ISA Bond Rates effective from 01/04/2009 Exclusive to Nationwide members of 3 years or more, it offers a higher rate of tax-free interest. Minimum age 16." had reduced the interest on the account to 0.5 to 0.75% a year ago whereas they are paying 1.75% for an on-line account and 1.25% to anyone with £1000 plus to invest.

I think that is pretty bad behaviour for a Building Society that obviously treats its long term members like dirt! They should pay compensation for giving their members such a rotten deal - in fact they should be fined by the FSA

Have a look at the ISA rates on their website it is still advertising the one of the lowest rates for its loyal members.....

Lokolo_2

Wendolin wrote: »

I think that is pretty bad behaviour for a Building Society that obviously treats its long term members like dirt! They should pay compensation for giving their members such a rotten deal - in fact they should be fined by the FSA

This is normal behaviour now, loyalty counts for nothing!

Why should banks pay compensation? It's their purpose to remain profitable.

No offence, but have you been hiding under a rock for a few years? As it's now the norm to have to move your savings around to get the best rate

If you want a guranteed rate then you can put your money into fixed term bonds, where you can chose a term up to 5 years, knowing that your money will always be earning the advertised rate until the time is up!

CLAPTON

its been normal behaviour for the last 30 years or more
so no change here then

dunstonh

This is normal behaviour now, loyalty counts for nothing!

there is no business loyalty but then there isnt customer loyalty any more either.

I think that is pretty bad behaviour for a Building Society that obviously treats its long term members like dirt!

In what way have they treated the account holder like dirt?

They should pay compensation for giving their members such a rotten deal - in fact they should be fined by the FSA

They are a business and entitled to run their business with the laws of the land. They have broken no rules or laws.

Ironically, one of the reasons they can offer higher rates on new accounts is the lower rates offered on older accounts helps cross subsidise. Offering the same rate to all is logical from a service point of view but there is a financial reason for doing it. If you dont like it then you do what everyone else has for decades. You review your finances periodically and make changes.

juicyjude

Wendolin I do have a certain amount of sympathy with you. If she still wants to stick with N/W then get her to transfer her funds to, as another poster says, a FRISA and she will know what she will be getting intrest wise. I am also unimpressed with Nationwide for different reasons, so she may feel more inclined to do some research on other providers and see what she can get with them. And yes, as above, there may be no customer loyalty but I think this is because primarily there is no business loyalty anymore and customers have to keep switching as bonuses only last approx 12 months.

Mickygg

I know how you feel. People are jumping on the 'tough' and 'your fault' bandwagon, but these people probably don't know the exact ISA you are talking about.

I too had this ISA and was told by transferring to a members bond ISA you would be guaranteed to be the best ISA rate in NW and better or at the very least very competitive with other banks and BS's. I was caught out when I got my statement and immediately swapped. An ISA bond that is EXCLUSIVELY for members who are 3 years or more are rewarded with a special high interest of..... 0.75%!!!

What i have found out is that banks and BS's always give a preferrential rate for products, then after a year usually drop the rate like a stone. so you have 2 options - fix for a few years so you at least are guaranteed some interest, or when you move to a new account, make a note to move after a year.

For now, as much as you dislike NW, move across to the e-ISA which is currently paying 2.75%.

C_Mababejive

It isnt just NW.

Many building societies and banks offering a fair starting rate,hook you in then when you have conveniently taken your eye off the ball,cut your rate. This usually happens by default, i.e you reach the end of a special bonus rate etc. The easiest way to remember is to set a reminder in your mobile phone to prompt you when the special offer ends.

Lets face it,the special offers and top rates are all sh&te anyway.

Banks have restored their liquidity and stocked up on assets on the backs of ripping off savers.
It truly is a mugs game to save.

Make sure you dont forget the lessons we have all been harshly taught this past couple of years.

I would advocate that all disgruntled NW customers switch accounts elsewhere eg, santander or similar..

Wendolin

I wish some people would READ what is said before jumping down ones throat. Its not my account or my money, its not a bank its a building society. And it was a bond they said was guaranteed to give their highest ISA interest rates, verbally and in writing - I would have expected them to have cancelled the bond in writing if they were going to change it's terms and conditions.

le_loup

You ... or your daughter ... seem not to realise that base rate has fallen to 0.5%. All long term, instant access, cash savings trend around base rate. Nationwide send annually, a statement of current and past interest rates and it is unlikely that their sales blurb on the account in question said guaranteed FOR ALL TIME.
All banks, all building societies operate the same model; take savings as cheaply as possible and lend out as expensively as possible. Is that really wrong? I suppose if you abhor the capitalist model, you would. Meanwhile, that's the country we live in and we have just voted for a government that approves of capitalism, so, I suppose the voter do too!
Meanwhile, take the advice you've been given; play them at their own game and move you money and keep an eye on it ... at all times.

Wendolin

Of course I know what the base rate is and whilst I have several ISAs myself (fortunately paying around the best rates for the last couple of years) I get a much better return on from shares with my spare cash. As I said at the start I get fed up with having to constantly monitor my accounts - and now my daughters etc.

opinions4u

its not a bank its a building society

Why do people believe that building societies are some sort of cuddly club?