Lloyds v Nationwide

Archergirl

My sister has an appointment tomorrow to switch her current account from Lloyds to Nationwide.
In light of the takeover announcment is it still a good idea to go ahead?
She would hate to miss out on any bonus to Lloyds customers as she has been with them for about 25yrs.

grey_gym_sock

why would there be a bonus? lloyds customers do not own lloyds; lloyds shareholders do.

Archergirl

Ok, thanks, that was what she wanted to know, I think she was hoping it would be like the building societys.

Robisere

Hi
Your sister is making a very good move to NW. We had been with several High Street banks until moving to NW in 2003. Gradually, as we moved on to Internet banking, and the bank became more and more technologically advanced, we realised that it had been a great move. We now run our current account, some savings, credit card and until recently had an ISA with them too. Their security is first class and the customer service is great. The only problem for us is that our high street branch is over 20 miles away, after NW closed some minor branches that were operated from NW Estate Agents (they are a very good E.Agency, too!) but as 99% of our banking is on the net, that is no problem. We have even set up Junior ISA's online for grandchildren with NW, very easy to carry out. Most sizeable towns do have a branch, so most "Townies" or those who live near a town, will have no problem getting to a branch.

The confusion you had regarding "Takeover" payouts are understandable, but tell your sister that NW have put systems into place which will mean that they can never lose their Mutual status. Account holders are treated as members and have a vote every year in choosing the Board.
In view of the current state of banking in this country, and the performance of the so-called major banks, we actually moved all our meagre finances into Mutuals: NW, Yorkshire and the Nottingham. In times of high share values, they may not perform as well as the recognised financial institutions, but at the moment they are actually performing better. And those last 3 are the top 3 Mutuals in the UK. Their assets are on a par with major banks.

jimjames

I've not heard any news about Lloyds being taken over? Have I missed something? It seems very unlikely as they merged with Halifax and I can't see any other bank being given approval for a takeover.

Reaper

Lloyds has just sold 632 of their branches to the Co-Op. My guess is they are getting confused having heard their local branch is being "taken over".

MoneySaverLog

Robisere wrote: »

The confusion you had regarding "Takeover" payouts are understandable, but tell your sister that NW have put systems into place which will mean that they can never lose their Mutual status. Account holders are treated as members and have a vote every year in choosing the Board.

Voting which is next to useless as members are cajoled by staff to put their X's on the voting forms where they tell them too when they ask in branch. Nothing was mentioned about the alternative options like demutualisation (and getting a nice little bonus) when they had their vote for carpetbagging back in the 1990's.

Members keep voting in the Chief Executive on his 7 figure salary and same with his stock options. It's a disgrace this mutual building society saying it's there for the members and all Graham Beale and his board of directors are interested in is how big a slice of the pie they can get their grubby little hands on.

LTSB all the way with me over this building society any day.

innovate

I have accounts a both, Nationwide and Lloyds (and a few others). I never keep much money in my Nationwide Flexaccount since it pays no interest. But I pass some money through the account, and have a couple of Direct Debits on it, so I can avail myself of their Flexclusive ISA, and the European Travel cover.

I would never willingly give up my Lloyds Vantage current accounts for as long as they still pay decent interest.

The concept of "my bank" has always been totally alien to me. What counts for me is "my money", and I place it where I get the best value. So I have accounts at multiple banks, and I can't see this changing anytime soon. No bank would reward you for your loyalty - - it's all a matter of numbers, a purely financial relationship. All they are interested in is to make the most out of every customer. And all customers should be interested in is to make the most of the banks.

rb10

MoneySaverLog wrote: »

Members keep voting in the Chief Executive on his 7 figure salary and same with his stock options. It's a disgrace this mutual building society saying it's there for the members and all Graham Beale and his board of directors are interested in is how big a slice of the pie they can get their grubby little hands on.

So you would suggest paying significantly less to the CEO of Nationwide?

Generally, lower pay results in poorer quality candidates (Graham Beale will be able to get a seven-figure salary elsewhere).

Which will result in poorer decisions being taken by the top management.

Which could easily lead to all sorts of problems.

anamenottaken

rb10 wrote: »

So you would suggest paying significantly less to the CEO of Nationwide?

Generally, lower pay results in poorer quality candidates (Graham Beale will be able to get a seven-figure salary elsewhere).

Which will result in poorer decisions being taken by the top management.

Which could easily lead to all sorts of problems.

Is there evidence for claiming that astronomic pay to directors equals sound decisions and good management?

ajbell

Nationwide pays 0% Lloyds pays 2.96%
Why would you let Nationwide have your money for nothing.