Nationwide;Amazing reward for loyalty...yawn

Gromitt

bristolleedsfan wrote: »

Usual Postman Pat delivery cheer today :rotfl: Loyalty Saver Issue 1 - 15 Year rate down from 2.6% to 2.1% from 1 September, before someone says, yip not a surprise and yip still one of the better savings rates

10 year rate down from 2.3% to 1.9% from 1st September.

Tesco down from 2.6% to 2.1% until 1st October, then 0.75%.

I'm fast running out of accounts that pay > 2% !

C_Mababejive wrote: »

Lets have a mass withdrawal...from Nationwide.

Lets nominate this Saturday as pull your wad out day !

And put it where? No one else is offering better rates.

leveller2911

C_Mababejive wrote: »

Lets have a mass withdrawal...from Nationwide.

Lets nominate this Saturday as pull your wad out day !

Thats the trouble with us Brits, collectively we are weak and pathetic as we never complain en-masse......

I'm actually voting with my feet and going in on Sat morning to arrange to take out about £35k in cash. They won't care oviously ,but when they are paying 2.75% on my saving whilst charging me 19.9% on a credit card (if I used one) their profit margin has ballooned. Back in 2007 they were giving 6.49% on ISA's and charging 9.9% on their credit card......."Here for our members" yeah right

Nationwide can go and get f*cked. I'm buying a big nasty dog and moving into the loan shark business.....:D

grey_gym_sock

the ovewhelming majority of nationwide's lending is mortgages, which is at historically very low rates - just like saving rates. they also have some low personal loan rates now. so you pick the 1 thing that has high rates: a credit card. not very representative.

does it even matter how high credit card rates are? we all know that, apart from some temporary offers, you'd be made to borrow at credit card rates of interest. it doesn't make much difference whether it's 19.9% or 17.9% or whatever - it's all too high to make any sense.

also, nationwide don't set the general level of interest rates. while they may not be much better than banks (except on not going bust and needing to be bailed out - they're much better at that), i don't see how they're any worse.

complaints about the level of interest rates should be directed at the BoE and the government.

C_Mababejive

Gromitt wrote: »

10 year rate down from 2.3% to 1.9% from 1st September.

Tesco down from 2.6% to 2.1% until 1st October, then 0.75%.

I'm fast running out of accounts that pay > 2% !



And put it where? No one else is offering better rates.

In vest it in investment grade corporate bonds. Do you know what my annual return is on one of my funds today? 11.5%

Gromitt

C_Mababejive wrote: »

In vest it in investment grade corporate bonds. Do you know what my annual return is on one of my funds today? 11.5%

My investment pot is full - well, I don't fancy putting any more money in it yet as I consider all investments risky with the chance of losing 100% of the capital over time.

Saying that, at the moment so far this year:
Shares: 4333
Cost: £10,000
Current Price: £2.79
Current Value: £12,089.07
% Change: 20.89%

Not bad I think, but like I said, only do that with money I'm willing to lose.

My other less-risky investments are all at 4% or lower.

atypical

grey_gym_sock wrote: »

the ovewhelming majority of nationwide's lending is mortgages, which is at historically very low rates - just like saving rates. they also have some low personal loan rates now. so you pick the 1 thing that has high rates: a credit card. not very representative.

Don't banks/building societies report this as their net interest margin? Nationwide reported 1.04% in 2013, up from 0.83% in 2012. No where near the difference between 19.9% and 2.75%.

Increased due to "repricing of fixed rate mortgages and growth in customer balances reverting to our Standard Mortgage Rate (SMR). Margins have also been supported by the Government’s Funding for Lending Scheme (FLS) which has driven down the market price of both new lending and funding since its introduction."

ffacoffipawb

atypical wrote: »

Don't banks/building societies report this as their net interest margin? Nationwide reported 1.04% in 2013, up from 0.83% in 2012. No where near the difference between 19.9% and 2.75%.

Increased due to "repricing of fixed rate mortgages and growth in customer balances reverting to our Standard Mortgage Rate (SMR). Margins have also been supported by the Government’s Funding for Lending Scheme (FLS) which has driven down the market price of both new lending and funding since its introduction."

They also have cheap mortgages. The credit card business is small by comparison. This is why the margin is small.

rb10

C_Mababejive wrote: »

Lets have a mass withdrawal...from Nationwide.

Lets nominate this Saturday as pull your wad out day !

Are you mental? Why would people withdraw their money on Saturday, when many are still getting 2.6% (completely unbeatable) for another two weeks, and even after that are still getting a better rate from Nationwide than you'd get elsewhere.

grey_gym_sock wrote: »

the ovewhelming majority of nationwide's lending is mortgages, which is at historically very low rates - just like saving rates. they also have some low personal loan rates now. so you pick the 1 thing that has high rates: a credit card. not very representative.

atypical wrote: »

Don't banks/building societies report this as their net interest margin? Nationwide reported 1.04% in 2013, up from 0.83% in 2012. No where near the difference between 19.9% and 2.75%.

ffacoffipawb wrote: »

They also have cheap mortgages. The credit card business is small by comparison. This is why the margin is small.

Some very good points above, but you're just missing one thing ... you are letting the facts get in the way of a good story Some people will always like to claim they are being 'ripped off', regardless of what the facts are.

Old_Slaphead

rb10 wrote: »

Are you mental? Why would people withdraw their money on Saturday, when many are still getting 2.6% (completely unbeatable) for another two weeks, and even after that are still getting a better rate from Nationwide than you'd get elsewhere.

2.6% unbeatable ?? - try Santander current at 3%

After maturity what rate are you expecting from NW - IMHO their current rates are easily bettered.

Hominu

Old_Slaphead wrote: »

2.6% unbeatable ?? - try Santander current at 3%

Apples and oranges. Santander is a current account requiring £500 deposit every month, 2 DDs to be setup and has a maximum balance of 20K. If you don't have qualifying DDs then it also has a £2/month charge.

Nationwide's Loyalty Saver has no minimum deposit, no DD requirement and a maximum balance of £5 million. (New customers get 50K)

Old_Slaphead wrote: »

After maturity what rate are you expecting from NW - IMHO their current rates are easily bettered.

There is no maturity or bonus period - the rate says the same until Nationwide send you a letter saying they are reducing it, like they have just done, but way after everyone has has already reduced theirs.

If I only had 20K to save then yes, I wouldn't be using NW, but I have in excess of 100K.