Nationwide Regular Savings - Ending? - What's happened?

AirlieBird

Nationwide reviewed the Regular Savings offerings last year. From that review on 1st December 2015 they launched the Regular Saver and withdrew the Regular Savings. Those with a Regular Savings account were notified at this point that the T & C of the Regular Savings had changed and it would mature and be transferred to an instant access account on the 1st December 2016.

colsten

leboof wrote: »

Yeah, they have my current address, I received the 2nd letter, but not the first, neither did my partner so although I understand a misplaced letter by the post office is possible... two letters? Hmmm.

Hundreds of us received the first letter last year. Just you and your partner did not.

Dozens of us discussed the advised change on this forum at the time. Just you and your partner did not.

Hmmm.

adindas

For the people who already have Flexclusive RS at 5%, could they still have Regular Savings and/or Regular saver ??

If my memory serves NW does not allow it, but just want to recheck it to see whether I have missed these opportunity ...

Thanks

YorkshireBoy

adindas wrote: »

For the people who already have Flexclusive RS at 5%, could they still have Regular Savings and/or Regular saver ??

If my memory serves NW does not allow it, but just want to recheck it to see whether I have missed these opportunity ...

Firstly, the Regular Savings account hasn't been available to new customers for some time. But, yes, they could have held both simultaneously.

Secondly, your memory is good because...

You can only have one Regular Saver or Flexclusive Regular Saver account at any one time.


http://www.nationwide.co.uk/products/savings/regular-saver/features-and-benefits

ColdIron

If you already have a Regular Savings account you can have a 5% Flexclusive Regular Saver or a 2% Regular Saver as well. You cannot have both Saver accounts at the same time

jimjames

leboof wrote: »

Thanks for the reply, I don't have a current account with them I'm afraid.

As their current account pays 5% and also pays a referral bonus, is it not worth opening one if getting a decent rate is important to you?

System

The 5%, while good, just matched what a Halifax switch would've paid at one time (£125 upfront, currently £100 though) - you'd have to hold £2500 for a year to achieve that £125. I do have one and its where I keep my emergency fund but I did decide to invest rather than hold a full £2500

Besides all that, having a good rate on a current account is really just a ploy to compete against Halifax and the like in the current account market, otherwise it'd be a savings account rate. Its also nationwide trying to get people off of branch managed accounts and the fact the rate expires after a year means its more to attract rather than reward. It is the same aggressive business sense that banks are Pershing, but its hard to say that its really any better - remember even if Halifax only pay £100 to switch and £3 a month in the reward account you're still beating nationwides £125 payout without having to tie up £2500 for a year and without expiry

ceredigion

MatthewAinsworth wrote: »

The 5%, while good, just matched what a Halifax switch would've paid at one time (£125 upfront, currently £100 though) - you'd have to hold £2500 for a year to achieve that £125. I do have one and its where I keep my emergency fund but I did decide to invest rather than hold a full £2500

Besides all that, having a good rate on a current account is really just a ploy to compete against Halifax and the like in the current account market, otherwise it'd be a savings account rate. Its also nationwide trying to get people off of branch managed accounts and the fact the rate expires after a year means its more to attract rather than reward. It is the same aggressive business sense that banks are Pershing, but its hard to say that its really any better - remember even if Halifax only pay £100 to switch and £3 a month in the reward account you're still beating nationwides £125 payout without having to tie up £2500 for a year and without expiry

When did it have to be one of the other.

System

I do have both but most people wouldnt, and thats a general assumption of the banks
General point being that their product, while good, can be beeten by profiteering banks, in theory that shouldnt happen

bigadaj

MatthewAinsworth wrote: »

I do have both but most people wouldnt, and thats a general assumption of the banks
General point being that their product, while good, can be beeten by profiteering banks, in theory that shouldnt happen

Why shouldn't it happen?

The slightly mad economic position that we are now in, where money is being made available at a little above zero interest rates to the bank mean they don't need depositors money.

Traditionally, for many decades if not centuries, banks worked on a margin of say 2% between lending and borrowing money from savers, so say 1% either side of the base rate. That would currently mean giving you interest of around -0.5 or -0.75%, and I'd suggest you wouldn't be happy with paying to have your money in the bank.

These accounts are all loss leaders for teh institutions, they are designed to draw people in to sell more profitable business to, whether that be personal loans, credit cards, mortgages etc.