Nationwide after BoE Interest Rate rise

bowlhead99

libra10 wrote: »

Nationwide do have a good side - their customer service is excellent, and internet banking second to none!

We started using Nationwide when they had a branch in our village, back in the day. However, when they are offering such derisory interest rates when old accounts mature, it would be stupid not to look around to gain more interest.

Surely that is the ethos of MSE?

Yes, though a cynic might say:

a) the 'ethos of MSE' is to continually shop around and switch to the very best deal you can find in that moment, because you shouldn't let a notion of 'loyalty' to a product provider cause you to lose out on grabbing the very best profit, highest income, lowest cost than you can possibly find.

b) the short-termism and grabbing of the very best deal in the moment, promulgated by the supporters of (a) above - turning your back on your previous product provider to grab whatever you can - encourages financial services businesses to target their marketing budgets toward dangling some carrots to attract new customers from elsewhere. Rather than than aiming to provide a 'good enough' deal over the course of a long term customer relationship. They will be last on the wishlist of 'savvy MSEers' if they just offer averagely decent rates to everyone, because you can't top a short term league table if your only averagely decent. So they have to compromise. Based on what they think the public want/ need / will put up with.

Step (c) is for the proponents of the culture identified in (a) to further moan and whine that banks and building societies are never going to be loyal to you - as demonstrated by the focus on new customers rather than existing customers or long term relationships, in (b), which was caused by (a) - and redouble their efforts to keep hopping from bank to bank for the extra pound of interest. Perhaps they don't realise that they are the person in a car sitting in a traffic jam who complains that there are so many bloody cars on the roads these days.

If you're a fervent MSE adherent: if you hop and make an extra pound, favouring bank A over bank B in that moment, you are being savvy, pat yourself on the back. Whereas if a bank focuses their love - for just one split second in the grand scheme of things - on a mortgage borrower or a current account holder or a personal loanee, or a person building up savings from a low level, or an [insert whatever customer type you might not be at that time], so that such and such a customer gets a better relative deal from that financial institution that month, than you do, it's abhorrent and they are all out to fleece you. Dump them like a shot.

The issue of "a causes b causes c and we're back at a again" won't really go away.

It would be nice if we all played nice and got a great standard rate so nobody had much reason to switch. However, if you know that you have a reasonable deal but could do better, the nature of capitalism is to see what you can do for yourself to get that better deal. If that means discarding your loyalty and jumping into bed with a challenger provider, some will do it. And challenger providers have to be given a chance to get a foot in the door with nice offers, in the spirit of competition, so there will always be businesses with intro rates and promo deals. Which means that incumbents have to try to compete with those to avoid losing custom, and they can't realistically be expected to give away all their profits if they are to succeed. So, we are pretty much stuck with an industry that's short-termist and profit focused.

Thrugelmir

bowlhead99 wrote: »

So, we are pretty much stuck with an industry that's short-termist and profit focused.

Something the FCA is reviewing and undoubtably will address in the months to come.

vm2pensioner

Nationwide's slogan was once "On your side". Not anymore, evidently.

veryintrigued

Some great adverts though

https://forums.moneysavingexpert.com/discussion/5712969/worst-bank-building-society-tv-advert

vm2pensioner

veryintrigued wrote: »

Some great adverts though

https://forums.moneysavingexpert.com/discussion/5712969/worst-bank-building-society-tv-advert

But dreadful poetry!

Gordon_the_Moron

intalex wrote: »

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

Their site says if your account isn't listed its rate won't be changing, as the account isn't listed I'm assuming it stays at 1.4%.

The 2.5% rate on H2BISA is welcome though (I've got a lifetime ISA and I'm now using one of these simply as a regular saver with no intention of claiming the bonus on it)

jimjames

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.

Thanks Nationwide, I'll keep using their 5% and 3% accounts, far better than other options and unrelated to base rate

18cc wrote: »

Not so long ago Nationwide used to be market leading but not anymore they have been steadily deteriorating over the past couple of years

Nationwide are still market leading for many products including mortgages and savings. I'm happy and will carry on using them as will I suspect many others

EachPenny

jimjames wrote: »

Nationwide are still market leading for many products including mortgages and savings. I'm happy and will carry on using them as will I suspect many others

Market leading for Cash ISAs and instant access savings accounts?

intalex

Gordon_the_Moron wrote: »

Their site says if your account isn't listed its rate won't be changing, as the account isn't listed I'm assuming it stays at 1.4%.

Ahh well, wishful thinking

meltedlemondrop

Even after they halved what you could save per month in the regular saver?