Nationwide's new online savings account (and new online banking)

MarkyMarkD

Unbelievable that a Society with dozens of existing computer systems (after taking over Cheshire, Derbyshire and Dunfermline recently) needs to go out and buy another system from an outside provider rather than simply enhancing its existing online banking system.

You can already pay money into (and out of) their current accounts online, so why on earth couldn't they add that functionality to their own savings account online system? D'oh!

Joe_Bloggs

I think Nationwide should be congratulated in that nobody thought it was worth leaking the information prior to the launch. I hope there is not going to be an ad campaign based around this. I invite concerned savers to outline suitable scenarios for an advertisement campaign, perhaps based around a premise not done to death by others.
J_B. (It's crap and we know it is !)

Dr_Cuckoo3

premierfella wrote: »

You are of course right. I see Aldermore are another of their white label customers. I must be thinking of the HBOS accounts (AA, etc).

Along the same lines as david72, I can understand a "new" or non-bank getting into bed with Newcastle in this way, but for another (largest) building society with an existing internet savings business to do it is somewhat perverse unless Nationwide has long-term plans to ditch its "in-house" internet savings accounts.

Newcastle B/Soc http://www.nssl.info Strategic Solutions also provide internet banking for First Save and First Save's owner has its own in-house internet banking in the UK

It is interesting that a bank with it's own internet banking platform would use another company to provide internet banking separate from its own offering


http://www.thederbyshire.co.uk/about_us/online_talkback.aspx

"Although we have no current plans to offer Online Banking at the Cheshire, we are exploring the possibility of launching an e-savings account and we will be working closely with Nationwide to identify any future opportunities in this area"

MarkyMarkD wrote: »

Unbelievable that a Society with dozens of existing computer systems (after taking over Cheshire, Derbyshire and Dunfermline recently) needs to go out and buy another system from an outside provider rather than simply enhancing its existing online banking system.

You can already pay money into (and out of) their current accounts online, so why on earth couldn't they add that functionality to their own savings account online system? D'oh!

Card Readers / Direct Debit push and pull

MarkyMarkD

Dr_Cuckoo3 wrote: »

Card Readers / Direct Debit push and pull

Not sure quite what you mean ... do you mean that because they have implemented card readers (annoying and generally an unnecessary form of security in my experience) and don't want this nonsense for the new account, they needed a different system? Surely they could just switch off the card reader requirement for the new account!

And if you mean that the Newcastle offering gives them functionality for DD push and pull, that scarcely seems like rocket science compared to the pain of implementing yet another new system.

alanq

"MYSAVE ONLINE PLUS rate increased by 0.35% to 2.60% and bonus increased from 0.75% to 1.10% for 12 months w.e.f. 7.7.10. All other terms and conditions remain unchanged..."
https://www.emoneyfacts.co.uk/news/savings-news.aspx?newsarticleid=199337

I assume that they mean w.e.f. 7.10.10 the account wasn't around on 7.7.10.

So I'm guessing that there hadn't been a rush to open an account that allowed just one penalty-free withdrawal per year and even then paid a lower interest rate than a number of competitors that allow unlimited withdrawals without penalty. Even with the increase the account remains uncompetitive.

alanq

"MYSAVE ONLINE PLUS rate increased by 0.35% to 2.95% and bonus increased from 1.10% to 1.45% for 12 months w.e.f. 28..10.10."
https://www.emoneyfacts.co.uk/news/savings-news.aspx

Yet another increase! Even so this account should mainly appeal to the kinds of people who sign up without reading the Ts&Cs as almost no interest is earned on the entire balance during any month in which a withdrawal is made (except for one withdrawal per year).

Considering that the Post Office is offering 2.9% without any restrictions MySave still seems uncompetitive.

Skillz2

Not all what seems the intrest has to paid into a diffrent account so no compound intrest.

premierfella

I think, at the new increased bonus rate, this account might finally find a market (not me BTW!) which should only be those who want something comparable to a 1 year fixed term bond rate but with the ability to withdraw funds in an emergency without penalty (using the 1 free withdrawal).

I realise the difference is this is a variable rather than a fixed rate (but in reality the interest rate on this account is likely to be adjusted by varying the bonus for new investors rather than the variable rate IMO). Anyone needing to make a withdrawal would also probably be best advised to simply withdraw the balance down to £1 and look elsewhere rather than make a partial withdrawal.

I agree that 0.05% over the best instant access account hardly makes it a killer account though!

bondy01

david72 wrote: »

About the only thing that can be said in its favour is that it pays interest monthly, but not to the account itself, meaning you'd have to manually recredit the interest to the account each month. But since you'd have to be daft to want to open one in the first place..

That explains why I had a credit a couple of weeks ago. Couldn't find where it mentions it is monthly interest , nor on which date , nor that it sticks the interest in my flexaccount. I must be daft..... Thanks.
edit: just done some maths on this. 10k gives £18.68/month after tax. To me that is 2.24% over a year. Presumably I need to set up a DD for that amount each month to obtain the 3.05% gross (2.41% net) advertised.