Natiowide's Loyalty Bond

caveat_emptor

The much advertised Loyalty 5 Year Fixed Rate Bond offers interest at 1.65% AER. Advertising must be costing a bomb. There are many banks offering higher interest rates, so much for loyalty. NW will point out the minimum deposit is £1 but who in their right mind would deposit £1 for 5 years without being able to add to it?.
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EachPenny

Nationwide offer nothing for savers really, apart from their Flex Direct current account and the Flexclusive RS, for which you need to be a main current account customer too.

It is difficult to conclude anything other than Nationwide see their future as a provider of current accounts, and therefore will become a bank in every respect bar the name and ownership structure.

It's not like the 'loyal' members can do anything about it anyway...

ColdIron

EachPenny wrote: »

Nationwide offer nothing for savers really, apart from their Flex Direct current account and the Flexclusive RS

And the roads ...

Well yes obviously the roads ... the roads go without saying. But apart from the aqueduct, the sanitation and the roads, what have ...

isasmurf

And yet they still have under management 10% of UK deposits.

EachPenny

isasmurf wrote: »

And yet they still have under management 10% of UK deposits.

I wonder how many MSE regulars have 10% of their cash deposits with Nationwide though...

...mind you, it would take an awfully large number of 'new' FlexDirect accounts to equal 10% of UK deposits

xylophone

a main current account

I don't think that means much......

TheShape

EachPenny wrote: »

I wonder how many MSE regulars have 10% of their cash deposits with Nationwide though...

...mind you, it would take an awfully large number of 'new' FlexDirect accounts to equal 10% of UK deposits

I would think/hope quite a few. Flexclusive Regular Saver average balance of £3000 + £2500 every other year in a FlexDirect makes an average balance of £4250 in an one year. If that's more than 10% of your cash deposits you may have too much 'cash'.

ceredigion

TheShape wrote: »

I would think/hope quite a few. Flexclusive Regular Saver average balance of £3000 + £2500 every other year in a FlexDirect makes an average balance of £4250 in an one year. If that's more than 10% of your cash deposits you may have too much 'cash'.

But that would depend on your total wealth

EachPenny

Going back to the original point though, apart from the FlexDirect and Flexclusive RS, what else does Nationwide offer?

The next best rate on offer today is the 1.65% 5 year fixed rate bond. No part withdrawals and a penalty of 365 days interest on closure. Or 1.1% for the 2 year version with a reduced penalty of 180 days. You have to have been a member for at least a year plus have a current account (admittedly not difficult to achieve the latter).

After that, the next best is the 0.75% for the 15 year Loyalty Saver or the same rate for 1 year fixed-rate products.

Has anyone on here actully signed up to a five year fix at 1.65%?

ceredigion

EachPenny wrote: »

Going back to the original point though, apart from the FlexDirect and Flexclusive RS, what else does Nationwide offer?

The next best rate on offer today is the 1.65% 5 year fixed rate bond. No part withdrawals and a penalty of 365 days interest on closure. Or 1.1% for the 2 year version with a reduced penalty of 180 days. You have to have been a member for at least a year plus have a current account (admittedly not difficult to achieve the latter).

After that, the next best is the 0.75% for the 15 year Loyalty Saver or the same rate for 1 year fixed-rate products.

Has anyone on here actully signed up to a five year fix at 1.65%?

Just demonstrate that they really dont want our money. The flip side is they are more than happy to lend it out at 0%.

caveat_emptor

isasmurf wrote: »

And yet they still have under management 10% of UK deposits.

But not for much longer at NWs present interest rates and where is the cash going to come from to support mortgages.
Perhaps someone with an understanding of NWs business model could explain.