Nationwide after BoE Interest Rate rise

DiggerUK

polyphonic99 wrote: »

........Nationwide is not passing on last week's Bank of England 0.25% rate rise in full to savers in the first sign that big financial institutions will use the base rate to increase profit margins..........

They are under no obligation to do so.

Despite the separation of investment and retail banking, the implications have still not been understood by many. If the penny hasn't dropped yet, then this Bank of England article from 2014 needs to be read and understood. https://www.bankofengland.co.uk/-/media/boe/files/quarterly-bulletin/2014/money-creation-in-the-modern-economy.pdf

In the good old days banks could take your savings and put them in the pot with all their investment deposits, then finance borrowers at various levels of risk. Now with the government guaranteeing your savings, the government won't allow the banks to take such risk. The banks therefore, are not desperate to get their hands on your cash savings..._

EachPenny

polyphonic99 wrote: »

Thanks Nationwide, I will be moving any remaining money in my accounts with you just as soon as your competitors raise their rates by 0.25%, which for instance Skipton has already promised to do.

Aside from FlexDirect (first year) and the 5% Regular Saver, then the appropriate question is why do you still have any remaining money in Nationwide accounts if maximising interest income is your priority?

eskbanker wrote: »

Which of those seven published promises are you claiming they've broken?

Nationwide claim their savings interest rates are 'above market average'. The 'market average' they appear to have used is amongst high street bank instant access accounts, rather than the interest rates offered by other mutual building societies. Members might expect Nationwide to benchmark against other institutions which offer the benefit of mutuality, rather than against banks with shareholders to pay. Nationwide also ought to have some advantage of economy of scale.

So whilst they haven't promised to pay higher rates of interest than other institutions, it does chafe a bit hearing them extolling the virtues of mutuality when their sights are actually set on being indistinguishable from the ravening banks. (in part by diverting profit towards generously incentivising new current account custom)

d63

eskbanker wrote: »

Which of those seven published promises are you claiming they've broken?

why, none at all that i know of. did i imply otherwise? apologies i'm sure. the only worry i have is when they promise "our only focus is you" that this is probably much what a shark thinks on spying its lunch swimming by.
but this is the way of the world and i dare say that nothing short of genetic engineering is likely to change it anytime soon.

2010

One day the penny will finally drop that there is no such things as loyalty for ANYTHING.
Banks/B Soc rates, all insurance, broadband, mobiles, tv packages, etc.,etc.

Move, move move.

xylophone

I keep a Flexdirect account open to take advantage of the regular saver.

The regular saver pays 5% [(in common with those of the banks with the bubbly guzzling shareholders:) ) - I did enjoy that advert - can't say the same for the current batch!


To be completely fair to Nationwide, it does also pay 1% on the balance up to £2500 in the Flexdirect account which M&S/HBC/First Direct don't.

I've been a member for over twenty years - the "loyalty" saver rate is nothing special.

intalex

Malchester wrote: »

Have become increasingly disenchanted with Nationwide over recent years now only have Flex and loyalty single access ISA with them. ISA will be moving soon when things settle. Have been with them over 30 years but they have no loyalty to me so why should I have any to them. Even their loyalty rates are appalling compared to othe financial instituions

Can't see if they are increasing the rate on the Single Access Loyalty ISA by any amount... anyone know?

Bernard_Coleslaw

polyphonic99 wrote: »

Thanks Nationwide, I will be moving any remaining money in my accounts with you just as soon as your competitors raise their rates by 0.25%, which for instance Skipton has already promised to do.

Although Skipton has promised to raise its 'on-sale' rates by 0.25%, not all of its rates. Nice clever use of language.


So if you're an existing saver with them, what does that mean to you?

Alexland

Shame a 5.25% regular saver would have been good :-)

The accounts I have with Nationwide are such good value I wouldn't expect them to increase the rate.

Alex.

eskbanker

Bernard_Coleslaw wrote: »

Although Skipton has promised to raise its 'on-sale' rates by 0.25%, not all of its rates. Nice clever use of language.

So if you're an existing saver with them, what does that mean to you?

If you have a fixed rate product then obviously it doesn't mean anything to you, as both parties accepted the risks and rewards of that type of account.

If you have a variable rate account then it presumably means that they'd prefer to get everyone onto their current product range rather than having to support old ones ad infinitum, so they'd naturally encourage people to move by leaving obsolete accounts on unadjusted rates....

apt

The great majority of the Nationwide's members are savers and they have been shafting them for years. Got to have a good margin to keep Board and senior management pay rocketing upwards. Coventry used to be better, but unfortunately they've followed suit in recent years.