Nationwide Building Society Loyalty!

port_of_spain

bowlhead99 said:

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.

Valid point that Nationwide are cutting rates in response to two base rate cuts, not one. But a fairer measure is the difference between a savings account rate and base rate, not the ratio. So that account has gone from base rate + 0.65% to base rate + 0.15%, a relative cut of 0.5%.

I'm less unhappy, because I don't have that account. I have a Loyalty Saver which is falling from base rate + 0.35% to base rate + 0.15%, a relative cut of 0.2%. And a Triple Access Online Saver which is falling from base rate + 0.46% to base rate + 0.3%, a relative cut of 0.16%.

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. 

Personally, I like the mutual concept, but also like being paid more interest enough that I do shop around a bit, but only between building societies. So I've ignored top rates from banks. I seem to get very close to the rates I'd get if I used banks, too. You could call me a rate tart with a heart

ColdIron

missymouse said:

why can they pay 5% in current accounts

They won't from May
https://forums.moneysavingexpert.com/discussion/6125971/nationwide-cutting-5-rate/p1

Albermarle

As regular as clockwork on this board, if a loyalty rate ticks down at some point

I think the issue here is that it has not 'ticked down ' but reduced by 560% ( just to look at the maths from a different angle than you did ) .

mutuals think they need to behave like banks to attract customers via short term deals etc)
The Nationwide has changed its behaviour significantly in recent years , especially with its now jettisoned promise to always have reasonably competitive products , that did not swing around too wildly in response to changes in the market .

Sailtheworld

I'm always rather perplexed about the lengths people will go to on this board to chase what, even on large deposits, must amount to small change. I always find it a bit rum that these same people complain the loudest, with no sense of irony, about how loyalty must always work in their favour.

There's a chap who made millions from setting up a web site based on the premise that loyalty doesn't pay (money saving something I think). Maybe the fervent savers around these parts missed the memo.

I think I'll stick with nationwide though. Easy to deal with, nice staff, decent enough off the shelf mortgages. I might be down a few quid on my savings as a result of their savings rate cut (and withdrawal of their regular saver) but loyalty works both ways.

Albermarle

I'm always rather perplexed about the lengths people will go to on this board to chase what, even on large deposits, must amount to small change

I would agree normally but the difference between 0.25% and 1.4% on £50K ( for example ) is nearly £600 pa . Not really small change …..

newatc

Bowlhead " 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."
I know you are very knowledgeable and articulate but I think that is rather sanctimonious sentence. Don't bother to reply as I have no interest in continuing the discussion.  

margaretx9

The only real loyalty the Nationwide have is to their board members - the CEO earned £2.4 million last year including a £1.1 million bonus for promoting buy to let landlords and cutting savings rates!
At least banks generally work for their shareholders.

intalex

Just want to point out that the Loyalty Single Access ISA is a flexible ISA, so allows restoring of withdrawn funds by the end of the same tax year in which it was withdrawn. I've used this feature to earn better interest elsewhere in a non-ISA account with a view to putting the funds back into the Loyalty Single Access ISA before 5th April 2021. For me the flexible part was very useful as I'm currently non-resident and unable to open a new ISA to transfer to.

ColdIron

If you're a non resident you can't subscribe either so the fact that it's flexible isn't an advantage

If you move abroad

If you open an Individual Savings Account (ISA) in the UK then move abroad, you cannot put money into it after the tax year that you move (unless you’re a Crown employee working overseas or their spouse or civil partner).

https://www.gov.uk/individual-savings-accounts/if-you-move-abroad

intalex

ColdIron said:

If you're a non resident you can't subscribe either so the fact that it's flexible isn't an advantage

If you move abroad

If you open an Individual Savings Account (ISA) in the UK then move abroad, you cannot put money into it after the tax year that you move (unless you’re a Crown employee working overseas or their spouse or civil partner).

https://www.gov.uk/individual-savings-accounts/if-you-move-abroad

I am not subscribing (i.e. adding new funds) in the tax years that I am non-resident, and since withdrawal and restoration is in the same tax year the in and out nets off to no new additional funds. Even the interest in non-ISA form stays outside of the wrapper!