MSE News: Nationwide to hike fee on flagship packaged bank account

eskbanker

Archi_Bald wrote: »

I downgraded mine today over the phone. It's quite tedious as they insist on reading out the T&Cs. It took nearly an hour to get it done. It would have been easier just to close the FlexPlus and to open a new FlexDirect but I didn't want to lose the history as it's my 15+ years Loyalty account, and one of these days they might have another Loyalty offer that is of interest. As Kylie says: I should be so lucky, lucky, lucky....

She also recorded another ditty clearly aimed at loyalty and account retention

batrachophagus

I suspect Nationwide's fee income has fallen because of interchange cap on credit card fees and other regulatory changes, and they have decided to recoup it from packaged-account customers.


They probably looked at Santander's 123 fee increase, and how they retained the majority of customers, and figured it wasn't too risky.


I certainly haven't noticed big increases in the cost of travel or breakdown cover.

roddydogs

Just to clarify, you cant go from Flexplus back to the old Flex a/c & retain the European part of the travel insurance, even if your prepared to do the £750 bit for 3 months. This is despite being told by Internal mail that you can do that. Good old NW you used to be so good, not now.

bigadaj

batrachophagus wrote: »

I suspect Nationwide's fee income has fallen because of interchange cap on credit card fees and other regulatory changes, and they have decided to recoup it from packaged-account customers.


They probably looked at Santander's 123 fee increase, and how they retained the majority of customers, and figured it wasn't too risky.


I certainly haven't noticed big increases in the cost of travel or breakdown cover.

Do you have statistics for Santander, my impression that large numbers closed their accounts when they cut rates and increased fees.

schiff

I closed one of mine a few months after the change and my balance in the other is now 15% of what it was. I think it may be the latter where Santander has lost out, as 1.5% is not bad, especially if the cash-back from your DDs is enough.

eskbanker

bigadaj wrote: »

Do you have statistics for Santander, my impression that large numbers closed their accounts when they cut rates and increased fees.

The quarterly CASS switching stats published by BACS may not tell the whole story but should be reasonably indicative in their depiction of net gains from inbound minus outbound switches:

Q4 15 +3,592 [fee increase announced]
Q1 16 +17,871 [fee increase in January]
Q2 16 +46,208 [more net gains than all others]
Q3 16 +26,196 [2nd most net gains]
Q4 16 -7,322 [rate cut in November]

littlemissgreen

I have been arguing with NATIONWIDE for a few days about this, can anyone comment if I am right or wrong please?

I understand that the terms and conditions have been changed and or amended. I understand that they can say no more extended warranty cover from sept 2017 (made that date up!)

However my point is that I have since opening my account made several electrical purchases and I did so on the basis of an additional 1 year warranty. I am therefore horrified to hear that I have no warranty on these purchases I have already made. Although I made the purchases based on the one year additional cover and I did not take the shops additional cover out at point of purchase.

If they said you are not covered for new products fair enough but they are not saying that. They are saying all those things you have bought we are changing the terms retrospectively and now you are not covered. I would have actually bought the shops own additional insurance or spent a little more on different appliances which gave me longer cover if I had know they would do this.

I feel sad and utterly conned by nationwide and after being with them since 1991 I am changing banks.

Aletank

I downgraded to the Flex Direct with the 5% interest for 12 months, at which point I'll change banks to save any hassle !
When i upgraded it was all done in 5 mins online but to downgrade, that's a different story !
I was told branch or phone to downgrade, I'd heard that the phone takes about 1 hour as they read the t&c's out to you. So I went into the branch and was told I'd have to make a appointment ! I went home and phoned, 45 mins in all.
In 12 months time I'm just going to transfer to another bank, will probably take 5 mins online !
If they can make upgrading so pain free, why can't they make downgrading just as painless ?

amanita

Have to say, only Halifax also offers EUROPEAN breakdown cover, which is a huge bonus for me. Perks definitely are worth it... and the price hasn't changed in years, some don't understand the complaints about busting inflation.

bigadaj

amanita wrote: »

Have to say, only Halifax also offers EUROPEAN breakdown cover, which is a huge bonus for me. Perks definitely are worth it... and the price hasn't changed in years, some don't understand the complaints about busting inflation.

No, flex plus has European breakdown and recovery.