Grr, Nationwide!

ratechaser

Been with Nationwide for over 30 years, and there was a time when my family and I had a great deal of money invested with them across many different accounts - their rates were decent and from time to time they came out with market beating members only bonds.

Well that's been eroded bit by bit over the past few years. Their 'loyalty rates' are frankly insulting, but the final straw is the cut to Mrs RCs ISA rate, along with the even bigger cut (from 3% to 1%!) of their future saver accounts. 

Particularly annoying because it bucks the trend of other banks that tend to somewhat insulate cuts to children's accounts, but also because we have a lot of inheritance money held in trust for various children (not all our own) and it's a right faff to have to move it around because of the forms and signatures typically involved. 

Anyway, in about a month's time, we'll end up with a hundred quid in a membership account (just in case there's ever a demutualisation, as I've never signed a charitable assignment...), and a zero balance flex account that is still worth the monthly fee, just for the phone insurance.

Other than that, it's 'so long and nice knowing you' from me. Shame...

Eassenav

I have been thinking the same about Nationwide, I don't have as many investments as you but do have a nice amount put away for emergencies and some work planned for the house if we are ever in a position to do that.
My husband and I have a joint Flex plus account that we keep now just for the travel insurance and breakdown cover.  But I was wondering today, whether we could both take out a new sole Flexaccount and take advantage of the 5% interest for a year (then close the account).  I am not sure how much this would yield and I know it would mean transferring a £1000 a month in to each account, but presumably I could move simply move a £1000 out to a non Nationwide account and then move it back in again.  
My flexible savings account is currently paying 1.3% (Marcus).

Alexland

Eassenav said:

I was wondering today, whether we could both take out a new sole Flexaccount and take advantage of the 5% interest for a year (then close the account). 

You would want the Flex Direct not Flex Account for the 5% rate. If you haven't done it before you are also allowed a joint account in additional to your individual ones to get £7.5k at 5% for a year but you would need to regularly cycle money from an external account into each to keep the rate.

Albermarle

Nationwide have always been my main savings institution and current account but the recent cuts ( 1.4% to 0.25% for their 'Loyalty' ISA) means that I only have my current account and a linked easy saver with not that much in it.
Shame as you say .
https://forums.moneysavingexpert.com/discussion/6127098/nationwide-building-society-loyalty/p1

Eassenav

Alexland said:

Eassenav said:

I was wondering today, whether we could both take out a new sole Flexaccount and take advantage of the 5% interest for a year (then close the account). 

You would want the Flex Direct not Flex Account for the 5% rate. If you haven't done it before you are also allowed a joint account in additional to your individual ones to get £7.5k at 5% for a year but you would need to regularly cycle money from an external account into each to keep the rate.

Thanks for the information. We do have a joint FlexPlus account and savings accounts, but not a FlexDirect account. Do you think we will be eligible for the FlexDIrect accounts individually and a joint account? I know that there will be a bit of faffing moving money in and out of the account (I assume that will be OK) to get the full benefit.

Alexland

Eassenav said:
Do you think we will be eligible for the FlexDIrect accounts individually and a joint account?

I don't see why not just apply before the offer ends and you will find out if you are accepted. We cycled the money from an external source and it was fine.

ColdIron

Don't hang about

• If you want to bag the 5% interest FlexDirect currently pays on balances up to £2,500, you've until Thursday 30 April to apply and lock in that rate for a year. From Friday 1 May onwards it'll pay new customers 2% interest – and only on smaller balances.

https://www.moneysavingexpert.com/news/2020/04/nationwide-to-cut-interest-on-flexdirect-account-to-2--from-may/

ratechaser

Albermarle said:

Nationwide have always been my main savings institution and current account but the recent cuts ( 1.4% to 0.25% for their 'Loyalty' ISA) means that I only have my current account and a linked easy saver with not that much in it.
Shame as you say .
https://forums.moneysavingexpert.com/discussion/6127098/nationwide-building-society-loyalty/p1

Ah thanks, missed that thread, but then the letters only just landed on the doorstep today. Sounds like you and I are of very much the same mind here.

If it was 'just another bank' then I'd take this more philosophically, after all it's just a game with those guys... look at my username! 

But for a mutual (that has often traded/advertised heavily on that fact) to think it's alright to cut a children's account rate by more than 3 times the level of the recent base rate reductions... well that rankles just a bit with me. 

I've previously left savings with them even when they were a notch or two below the top headline savings rate because I had confidence that they'd always pay a decent amount in the longer run. But that confidence is gone and I don't see them getting my money back in a hurry...

MDMD

I’ve found out my letter from June last year when I opened my “Loyalty” 15 year ISA.....which says: “you have the security of long-term savings with a tiered rate”. This lasted about 6 months before they closed the product and now cut the rate. 

I suspect that a number people had built up substantial amounts with them that are becoming increasingly uneconomical to maintain given the net interest margins are so thin as a result of the mortgage price war. They probably would rather borrow the money from the markets at close to zero rather than lose money on a 1.4% customer balance so took the decision to encourage (unprofitable) customers who are paying attention to the rates to leave.

skid112

Having been with them for nearly 40 years I closed my only remaining account this week. They will never go public, the appetite for scrutiny of their spending is zero.
I have had a number of issues with the way they have been spending our money for a number of years but always fallen on deaf ears. The CEO earns over £2m a year, 2016/2017, £3.4m (includes a £1.1m signing on fee), 2017/2018, earned £2.32m, 2018/2019, £2.37m. This includes a bonus of over £1m, pension contributions of £342,000, other taxable benefits, £217,000. Every year, what are these 'taxable benefits'? Health insurance, travel expenses etc. Although lower than his greedy predecessor, Graham Beale, who managed to 'earn' £3.4m a year.
Average employee performance pay fell by 8.93% in 2018/2019, yet Mr. Garner's increased by 11.80%, he currently earns 77 times the average of a Nationwide employee

roddydogs

We did have a vote on becoming a bank, but a majority voted to stay mutual. Now youve got the worst of both worlds.