Nationwide BS New Issues Of Accounts

alanq

Yesterday I read about the huge profits made by the Nationwide BS.
http://www.thisismoney.co.uk/money/saving/article-2952232/Nationwide-BS-increases-profits-nearly-1bn-nine-months.html

Nationwide claims to be "on your side" so when I received a Saving Watch "new issues of our savings accounts launch today" email from it I looked forward to some good news. Nowhere was the difference between old and new offers listed just a list of all the accounts currently available to be opened. At a glance the rates on offer are much less than the leading rates on offer by organisations that I do not own a part of. Although the rates announced for new issues do not currently affect the rates for earlier issues past experience is that for variable rate accounts the new Nationwide rates will become the rates for earlier issues.

Current rate for 15-Year Loyalty Saver is 1.50% for Issues 1-5.
Issue 6 just launched offers 1.20%.

Limited Access Saver Issue 2 pays 1.20%
Issue 3 just launched pays 0.9%.

The board should get good bonuses next year!

Rates for all accounts can be found here
http://www.nationwide.co.uk/support/support-articles/rates-fees-charges/savings-rates

jimjames

They pay 5% on their current account, that's a market leading (or least matching) rate.

Their FlexPlus current account is excellent value for money and their mortgages are some of the best rates around.

When they can offer a mortgage at under 2.5% and pay out 5% yet make profits they must be doing well on other accounts.

G_M

jimjames wrote: »

They pay 5% on their current account, that's a market leading (or least matching) rate.

Their FlexPlus current account is excellent value for money and their mortgages are some of the best rates around.

When they can offer a mortgage at under 2.5% and pay out 5% yet make profits they must be doing well on other accounts.

Hardly comparable.

Mortgage value might be £200,000 (at 2.5%)

They are paying 5% on £2,500 max!

But yes, N/Wide rates are not really that good. Trouble is they are now the only major building Society left.

adonis

jimjames wrote: »

They pay 5% on their current account, that's a market leading (or least matching) rate.

Their FlexPlus current account is excellent value for money and their mortgages are some of the best rates around.

When they can offer a mortgage at under 2.5% and pay out 5% yet make profits they must be doing well on other accounts.

If you are a long standing Nationwide customer and now earn less than £1000 a month you can whistle for your 5%,

This rate is fixed for the first 12 months, subject to if you pay in £1,000 each month (excluding internal transfers)

ColdIron

You do know the £1,000 doesn't need to be salary and you can just move it out and straight back in again?

adonis

Yes but it is another thing to think about and you need an account outside nationwide to do it, or pull a grand out from under the mattress.:)

jimjames

adonis wrote: »

Yes but it is another thing to think about and you need an account outside nationwide to do it, or pull a grand out from under the mattress.:)

Only need £1000 outside for seconds.

Either the £2500 limit is a problem because you have too much money to fit in - in which case £1000 to move each month isn't an issue. Or you have less than £1000 in which case the limit of £2500 isn't a problem.

alanq

alanq wrote: »

Although the rates announced for new issues do not currently affect the rates for earlier issues past experience is that for variable rate accounts the new Nationwide rates will become the rates for earlier issues.

15-year Loyalty Saver 1st Issue will be reduced from 1.50% to 1.20% on 1st April bringing the rate into line with Issue 6.

Mr_Prudent

Having built up a tidy little sum by investing the maximum amount allowable to qualify for the 2.5% rate (Regular saver account) I am now informed that from next month the rate is being cut to 2%. Thanks for being on “my side” Nationwide!!

apt

G_M wrote: »

But yes, N/Wide rates are not really that good. Trouble is they are now the only major building Society left.

Coventry is a lot better at looking after longstanding savers than Nationwide IMO. I'm still getting 2.5% on an easy access ISA and 3.5% for a regular saver from them. The only account I have left with the Nationwide is a current account for free travel insurance.

Archi_Bald

apt wrote: »

Coventry is a lot better at looking after longstanding savers than Nationwide IMO. I'm still getting 2.5% on an easy access ISA and 3.5% for a regular saver from them. The only account I have left with the Nationwide is a current account for free travel insurance.

You can get 4% in Regular Savers if you live in the 'right' area. E.g. at KRBS.