Nationwide Flex Account Worth Keeping?

apt

C_Mababejive wrote: »

NW are currently swapping out some of their credit cards for platinum ones..presumably for selected customers. The card offers unlimited cashback amongst other things..

True, but the Nationwide platinum credit card is still poor compared to the Halifax reward clarity credit card.

Mikhail

gardner1 wrote: »

flex account IS a share in nationwide

'share' of what? Problems, low interest rates or NW directors 1m bonuses?

moonrakerz

bankersmug wrote: »

The only thing I can think of is if there's some kind of sale or buyout in the future there might be a payout to members.
Any thoughts?

I think the likelihood of that is about the same as the sun rising in the West.
Where are all those ex-Building Societies who promised all those wondrous thing when they de-mutualised ?

Ah ! those great names, pillars of financial probity, solid as a Rock, ; The Halifax; Northern Rock: Bradford & Bingley: Alliance & Leicester, etc, etc, etc, and of course the good old Trustee Savings Bank - haven't they all done well ??

Every tax payer now owns large bits of them again - whether they wanted to or not..........:rotfl::rotfl:

pqrdef

moonrakerz wrote: »

I think the likelihood of that is about the same as the sun rising in the West.

All building societies are vulnerable to bad decisions and adverse conditions, and takeovers still happen, like the upcoming demise of Norwich & Peterborough.

The doubt is whether anybody would get out while a shareholding was still worth anything.

But it's just about conceivable that a far-sighted Nationwide board would decide it was too small to compete effectively and look for a merger with say the Co-op.

whitleyforest

Best to keep you'r flex account for the above reasons but it also costs the Nationwide to keep on sending you statements. As they have no shareholders to pay they are awash with money. One can only hope they will float one day and that may bring some accountability to those that run it.
Try taking the Nationwide test. If you can get a personnal loan or mortgage from them then you are gold plated and represent little or no risk or default. The reward for being low risk? there is'nt one. Now look around for a Nationwidw beating deal - its not hard to find, and you will get another leander taking more risk and offering better rates.

I swapped to Santander!!! With thier reputation as well, and surprisingly I have had no cause for complaint - and thats savings currentA/C and mortgage. Better still come to think of it - they don't try and sell me insurance every time I go in!

moonrakerz

pqrdef wrote: »

All building societies are vulnerable to bad decisions and adverse conditions, and takeovers still happen, like the upcoming demise of Norwich & Peterborough.

Yes Building Societies are vulnerable to "bad decisions" - I think everyone now agrees that to de-mutualise was the worst one of all. (except for people like Adam Applegarth - who did very nicely out of it, thank you !!)
Building Societies are not allowed to borrow money on the open market to the same extent as the banks, so more of their assets are in bricks and mortar - not "dodgy" bonds from Greece/Italy/Spain/etc/etc.

Also, the Building Societies have this strange habit of NOT going bust and expecting the tax payer to bail them out. Building Societies have got into "difficulties" in the past but have always been taken over or merged with a larger society.

The Norwich & Peterborough is not undergoing a "demise" - it is merging with the Yorkshire Building Society - it is still a Mutual.

The last time a Building Society went "bust" was, IIRC, back in the 1800s
(I was Googling (unsuccessfully) to try and find a reference to this and came across a forum dated 2007 - where someone described Northern Rock as "prudent" :rotfl::rotfl::rotfl::rotfl::rotfl:)

pqrdef wrote: »

The doubt is whether anybody would get out while a shareholding was still worth anything.

N & P is a mutual - there are no shares ................

pqrdef

moonrakerz wrote: »

I think everyone now agrees that to de-mutualise was the worst one of all.

But instead of having delusions of how great they were going to be as independent banks, the more sensible societies simply sold themselves to a bank and distributed the windfall. See Bristol & West, Birmingham Midshires, C&G, Woolwich, National & Provincial, Leeds Permanent etc etc. There were lots of demutualisations, but only 5 of them became independent banks.

moonrakerz wrote: »

Building Societies are not allowed to borrow money on the open market to the same extent as the banks, so more of their assets are in bricks and mortar - not "dodgy" bonds from Greece/Italy/Spain/etc/etc.

This is why they have liquidity crises.

moonrakerz wrote: »

Also, the Building Societies have this strange habit of NOT going bust and expecting the tax payer to bail them out.

One or another gets into trouble relatively often.

moonrakerz wrote: »

Building Societies have got into "difficulties" in the past but have always been taken over or merged with a larger society.

Or somebody. Kent & Reliance by Flowers. Britannia by Co-operative Bank plc.

moonrakerz wrote: »

The Norwich & Peterborough is not undergoing a "demise"

Give it a couple of years, there'll be nothing left except the name.

moonrakerz wrote: »

there are no shares

There had better be, I'm a shareholder.

bankersmug

Well, I've closed the account as it has outlived its usefulness. Still have the Nationwide Mortgage though.

peanutnboo

I cannot think of many good reasons to not keep a nationwide account. I had a Santander and Lloyds Tsb accounts previously and I would rather stick pins in my eyes than ever have another account with either of those Banks.

Nationwide have a beautifully simple online transaction system with well laid out statements and easy to follow account payment/ transfer details .
I am confifent that you'll not find a better online account than nationwide .

LongTermLurker

bankersmug wrote: »

Can anyone think of a good reason to keep a Nationwide Flex Account open?

Any thoughts?

1) As a sacrificial account - something you can "transfer" to another bank in order to qualify for bonuses, eg Santander

2) It's free, which may be important to you at some point in the future