Become a Nationwide member without "windfall" signaway

Horasio

I tried to open an account at the Portman in Bournemouth on Saturday and they said we would not be eligible for a windfall with the merger.

Milarky

CCStar wrote: »

I tried to open an account at the Portman in Bournemouth on Saturday and they said we would not be eligible for a windfall with the merger.

That's 'correct' advice if they thought they were being asked about the 'merger' payment (a sort of 'windwall') to pre-September 2006 Portman members.

But his thread is discussing the different concept of obtaining 'back door' membership of Nationwide by opening a Portman account just prior to merger. If you do this, you become a member of Portman (assuming you have no Nationwide accounts open at the time) and THEN a member of Nationwide. But the Portman signaway period is just 5 years whereas Nationwide's signaway clause is 'for life'. Your pre-merger membership therefore 'carries' over into the Nationwide. After five years you would be eligible for a Nationwide 'windfall' (Nationwide members got nothing from this merger and weren't totally happy about that) - free shares in other words. This is certain as things stand (gaining eligibility that is) but it is also widely believed - based on other organisations who had clauses but then decided to demutualise - that Nationwide's Board would not seek a demutualisation with the clause applying - because too many voting members would be excluded - and they could vote against it to prevent it happening. But that isn't certain - although quite likely.

So if you really, really want to guarantee your position five years from now you would be advised to open a membership account with Portman just before the merger instead of Nationwide.

sb44

I have had accounts with the Nationwide and the Portman for at least 8 years so didn't have to sign any sign away paperwork.

My question is, is there any point in keeping the Nationwide accounts open if we have Portman accounts?

We have a hol coming up and the £300 we have in each indivdual Nationwide account would come in handy.

My husband, daughter and myself all have £100 each in both societies.

Also, I have only just found the Portman passbooks (been boxed away since we moved) so have never heard anything about it as we didn't change our address.

Does anyone have any rough idea what the windfall amount is likely to be? (I saw £200 mentioned a while ago).

bristolleedsfan

sb44 wrote: »

I have had accounts with the Nationwide and the Portman for at least 8 years so didn't have to sign any sign away paperwork.

My question is, is there any point in keeping the Nationwide accounts open if we have Portman accounts?

We have a hol coming up and the £300 we have in each indivdual Nationwide account would come in handy.

My husband, daughter and myself all have £100 each in both societies.

Also, I have only just found the Portman passbooks (been boxed away since we moved) so have never heard anything about it as we didn't change our address.

Does anyone have any rough idea what the windfall amount is likely to be? (I saw £200 mentioned a while ago).

minimum portman merger payout is 200.00 pretax, merger cheques are due to be sent out during third week of september.

merger cheques will be getting produced during last week in august ready for posting so would be prudent if u notified portman of your current address asap.

once portman and nationwide merge there is no point holding identical named accounts with both.

bristolleedsfan

Milarky wrote: »

That's 'correct' advice if they thought they were being asked about the 'merger' payment (a sort of 'windwall') to pre-September 2006 Portman members.

But his thread is discussing the different concept of obtaining 'back door' membership of Nationwide by opening a Portman account just prior to merger. If you do this, you become a member of Portman (assuming you have no Nationwide accounts open at the time) and THEN a member of Nationwide. But the Portman signaway period is just 5 years whereas Nationwide's signaway clause is 'for life'. Your pre-merger membership therefore 'carries' over into the Nationwide. After five years you would be eligible for a Nationwide 'windfall' (Nationwide members got nothing from this merger and weren't totally happy about that) - free shares in other words. This is certain as things stand (gaining eligibility that is) but it is also widely believed - based on other organisations who had clauses but then decided to demutualise - that Nationwide's Board would not seek a demutualisation with the clause applying - because too many voting members would be excluded - and they could vote against it to prevent it happening. But that isn't certain - although quite likely.

So if you really, really want to guarantee your position five years from now you would be advised to open a membership account with Portman just before the merger instead of Nationwide.

its also fair to say that if nationwide stick to its current stance that it will be remaining a building society then their will never be any windfalls for any nationwide members unless nationwide ever decide to pay out a one off windfall out of its profits and/or assets, which bearing in mind all the expensive peak time tv advertising its doing appears unlikely. :rolleyes: equally nationwide could demutalise or agree to be taken over by a bank/PLC within 5 years.

my opinion is that if ever nationwide did decide to change its status it would be able to guarantee ( like northern rock did) the charitable foundation that the charitable foundation would receive significantly higher yearly donations due to apparent fact that a PLC does not need to be concerned about assets and increasing assets ( unlike a building society which appears to be obsessed with size of assets and increasing assets ), its for this reason that the trustees of the charitable foundation imo would agree to the signaways being waived and at the same time would be acting in the best interests of the charitable foundation.

love2save

I have a Nationwide mortgage how does this affect me with regard to being a member?

cheggers

love2save wrote: »

I have a Nationwide mortgage how does this affect me with regard to being a member?

It will have no effect on your membership. You will just be able to use Portman branches come September (which will be re-branded Nationwide)

MarkyMarkD

bristolleedsfan wrote: »

my opinion is that if ever nationwide did decide to change its status it would be able to guarantee ( like northern rock did) the charitable foundation that the charitable foundation would receive significantly higher yearly donations due to apparent fact that a PLC does not need to be concerned about assets and increasing assets ( unlike a building society which appears to be obsessed with size of assets and increasing assets ), its for this reason that the trustees of the charitable foundation imo would agree to the signaways being waived and at the same time would be acting in the best interests of the charitable foundation.

Will you please stop repeating this nonsense claim?

The immediate value to the foundation of a Nationwide conversion would be well, well, over £1 billion bearing in mind the proportion of Nationwide members that are signed away.

Northern Rock foundation has not received £1billion from Northern Rock. Nor is it likely to do so.

Your idea that it is somehow better to lose >£1billion now, in exchange for a doubtful amount of income in the future, is completely spurious.

bristolleedsfan

MarkyMarkD wrote: »

Will you please stop repeating this nonsense claim?

The immediate value to the foundation of a Nationwide conversion would be well, well, over £1 billion bearing in mind the proportion of Nationwide members that are signed away.

Northern Rock foundation has not received £1billion from Northern Rock. Nor is it likely to do so.

Your idea that it is somehow better to lose >£1billion now, in exchange for a doubtful amount of income in the future, is completely spurious.

without both a vote for conversion and the required number of votes in favour of conversion ( and nationwide arent planning to give one anytime soon if ever, ) the value of the signaways to the charitable foundation is precicely NOTHING, nobody on ANY forum actually agrees with you.

you are the same person ( and again the only person) that has stated that their has never been a significance in the " 2 year rule" when as a matter of fact only those who had been members of cheltenham and gloucester for 2 years + got a payout and in the case of bristol and west takeover by bank of ireland 2 year + members got minimum of 500.00+ whereas "under" 2 year members got preference shares worth around 250.00.

u always want the last word so ill let u have it others can make up their own minds.

bristolleedsfan

MarkyMarkD wrote: »

You mean Nationwide, not Portman.

The limit is "always" £100 on a date just before the merger/conversion is announced, and £100 on a later qualifying date.

There's "nothing about number of years an account has been held".

more "nonsense" from MarkyMarkD based on historical fact

birmingham midshires also excercised a 2 year + rule and under 2 year rule as well

http://www.hmrc.gov.uk/manuals/ihtmanual/IHTM10104.htm