Nationwide Building Society Loyalty!

newatc

Nationwide are massively cutting their savings rates from May. Account such as Loyalty Saver (currently 1.1%) and Loyalty Single Access (currently 1.4%) reduced to a measly 0.25%. So much for loyalty! 

badger09

Already covered here: 

See link to press release in MDMD's post @ 2.29 (I wish they'd bring back post numbering!)

https://forums.moneysavingexpert.com/discussion/6125971/nationwide-cutting-5-rate/p1

Thrugelmir

The Nationwide have to lend the money out to sustain savings rates. Not a one way street. 

worldtraveller

newatc said:

Nationwide are massively cutting their savings rates from May. Account such as Loyalty Saver (currently 1.1%) and Loyalty Single Access (currently 1.4%) reduced to a measly 0.25%. So much for loyalty! 

The BOE base rate is now 0.1%, so why do you believe that 0.25% is still not rewarding loyalty?

newatc

worldtraveller said:

newatc said:

Nationwide are massively cutting their savings rates from May. Account such as Loyalty Saver (currently 1.1%) and Loyalty Single Access (currently 1.4%) reduced to a measly 0.25%. So much for loyalty! 

The BOE base rate is now 0.1%, so why do you believe that 0.25% is still not rewarding loyalty?

Because the BOE rate fell by 0.25% and Loyalty ISA by 1.15%. Ok the 1.4% was a good rate but to go down by such a margin and reduce to same as non-Loyalty accounts clearly indicate that the word loyalty means nothing to them. They are of course a mutual which means members (particularly long serving ones) should expect to have rates near to the market leaders which they are not.

Thrugelmir

newatc said:

worldtraveller said:

newatc said:

Nationwide are massively cutting their savings rates from May. Account such as Loyalty Saver (currently 1.1%) and Loyalty Single Access (currently 1.4%) reduced to a measly 0.25%. So much for loyalty! 

The BOE base rate is now 0.1%, so why do you believe that 0.25% is still not rewarding loyalty?

 They are of course a mutual which means members (particularly long serving ones) should expect to have rates near to the market leaders which they are not.

Market leaders may need the funds. They come and go. 

eskbanker

badger09 said:

Already covered here: 

See link to press release in MDMD's post @ 2.29 (I wish they'd bring back post numbering!)

https://forums.moneysavingexpert.com/discussion/6125971/nationwide-cutting-5-rate/p1

You can still link to individual posts as the date/time stamp in each one's header is an active copyable URL, so, for example, the post you refer to is https://forums.moneysavingexpert.com/discussion/comment/77022732/#Comment_77022732

Eco_Miser

newatc said:

reduced to a measly 0.25%. So much for loyalty! 

Massively beats the 0.01% TSB will be paying on most accounts from July

Albermarle

I have always been reasonably loyal to Nationwide ( mutual rather than evil bank ) but this cash isa cut from 1.4% to 0.25% is excessive . Aldermore bank offering 1.35% for one year and 1.45% for two years. I am going for one of those before they disappear !

missymouse

Yes, just received letter about my account, 1 yr triple.  Frustrating,as I’d only recently opened it and such an extreme cut, not worth bothering with
why can they pay 5% in current accounts

bowlhead99

newatc said:

worldtraveller said:

newatc said:

Nationwide are massively cutting their savings rates from May. Account such as Loyalty Saver (currently 1.1%) and Loyalty Single Access (currently 1.4%) reduced to a measly 0.25%. So much for loyalty! 

The BOE base rate is now 0.1%, so why do you believe that 0.25% is still not rewarding loyalty?

Because the BOE rate fell by 0.25% and Loyalty ISA by 1.15%. Ok the 1.4% was a good rate but to go down by such a margin and reduce to same as non-Loyalty accounts clearly indicate that the word loyalty means nothing to them. 

The base rate was 0.75% when they were offering 1.4% to members (a bit less than double the base rate). The base rate then spent eight days at 0.25% before dropping to 0.1%. The offer to members is now 2 and a half times the base rate, i.e. more than double it, rather than less than double it.

If you want to help support them in employing 18000 staff despite lack of revenues, while still providing competitively priced mortgages and loans to members who need help getting through these difficult times and being lenient with them if people have trouble paying on time due to unprecedented circumstances, you could leave your money with them to allow them to use it. That would be demonstrating your loyalty. But I guess loyalty means nothing to you, if you would jump ship if they stopped offering as good a rate as you could find on the open market from someone whose marketing department was keener to acquire customer deposits.

Albermarle said:

I have always been reasonably loyal to Nationwide ( mutual rather than evil bank ) 

As you like the mutual concept and being a member rather than a customer, consider staying with them to help provide them the finance to keep supplying services to other members or prospective members needing loans or mortgages to get them through this difficult time, and to keep paying their staff despite reduced revenues. 


As regular as clockwork on this board, if a loyalty rate ticks down at some point after a base rate or Libor fall, or doesn't tick up the split second the base rate rises, you see people moaning about the savings rates not being the best they could find on the open market, and jumping ship, while simultaneously saying that the financial institution isn't 'loyal'... yet it is they who are abandoning the building society to seek greener pastures, and will later moan about how there are no good mutuals left any more (because they abandoned them and made the mutuals think they need to behave like banks to attract customers via short term deals etc)