£100 payment - Nationwide Fairer Share

TheBanker

A further thought from me.

Imagine two customers:
Mr Loyal has had a mortgage with Nationwide for many years and currently owes about £170k. He was on a fixed rate which ended a couple of months ago. He took out a new fix with Nationwide and paid a £999 product fee and is paying about 4% interest. The increased payments are a challenge for Mr Loyal, but he's not missed any or gone into arrears. Mr Loyal also recognises the importance of savings, so he holds an Instant Access saver with a balance of £10k, earning 1.25%. Mr Loyal does not know about MoneySavingExpert, and isn't aware that he could earn much more interest if he moved his savings to a bank.

Mr Switcher opened his Nationwide current account in October 2022. He switched an account he'd specifically opened for this purpose from another bank, including 2x£2 Direct Debits to charities. For this he received £200. He set up a Standing Order from his bank account to Nationwide for £1,000 per month in order to qualify for the 5% interest on his current account. Every month he immediately transfers the £1,000 back to his bank account. He keeps his Nationwide account at exactly £1,500 to earn the maximum interest possible. He also set up a Start to Save account, paying in £50 per month to earn 5% interest (now 5.25%). 

During February, March and April, Mr Switcher made sure he spent exactly £200 in supermarkets, to qualify for £10 per month cashback. My Switcher did not actually need to spend £200 in supermarkets, but he bought some gift cards in order to maximise the benefit he achieved from the promotion. When the February cashback was paid, Mr Switcher actually only received £9.94. He made a formal complaint to Nationwide about the missing six pence. This complaint centred on whether Wilkinsons is a supermarket. 

In February, Mr Switcher opened a second Nationwide current account. As soon as his card arrived, he switched this account out to Santander to generate another £200 bonus. 

In April, Mr Switcher received a bill which he had not budgeted for. But fear not, because he has an arranged overdraft with Nationwide which is charged at 0% for the first year. So he used this to cover the bill while he was waiting for a fixed-rate product elsewhere to mature. When the fix matured, Mr Switcher put his Nationwide balance back to exactly £1,500 to maximise his interest. 

Mr Loyal does not qualify for the £100, because he does not have a current account. Mr Switcher qualifies for the £100  due to the transactions on his current account, which were specifically generated by him to maximise his interest and cashback.

Mr Switcher's use of Nationwide's current accounts will have cost them money. They've paid him a switcher bonus, interest, cashback, and incurred the costs of dealing with a complaint about six pence, and the costs of setting up a new account which was immediately closed. 

Mr Loyal's mortgage and savings have generated profit for Nationwide.

Nationwide have, effectively, taken profit from Mr Loyal and given it to Mr Switcher. They are entitled to do this, but how they can describe this as 'Fairer' is beyond me. 

Nebulous2

My first thought about this was - you win some, you lose some. Seeing all the annoyed people, I've wondered if I should change my mind, but even reflecting on it I'm finding it hard to find any sense of grievance. 

I joined in 2015. Had a mortgage for a second home until 2 years ago when I sold my house. I use the current account regularly, have 2 DDs, but use my debit card very rarely now that Chase pays 1%. I've paid over £20k into it in the last 6 months, over £10k in the 3 months in question, but was £100 short in March to get the payment. I've a credit card with 3 CPAs coming from it, but don't use the CC for anything else. 

On the plus side:- 

I've had two switching in bonuses. 
Two donor accounts used to get switching bonuses elsewhere. 
5% on the current account, for however long it lasted. 
Several regular savers. 
£28 on the shopping initiative (assuming I get the last £10) 

I'm fairly confident that I've had more from them than they've had from me - despite the mortgage. I'm kind of annoyed at myself that I didn't maintain the £500 a month payment in. I kept it up for years, then gave up when I rationalised my monthly payment cycle. 

As for being a mutual - I was a passionate believer in the Co-op principles, but John Lewis disabused me of that. I put over £100k worth of spend through them in 20 years, but fell out with them and have given them nothing for years. What they did was no different from what some other companies would have done, but I expected more from them. I'm also currently very disgusted with the Caravan and Motorhome Club, (CAMC) who are also a membership organisation, because of their price increases. 

That's largely brought me to where I am with Nationwide. I don't think I have any right to hold them to a higher standard than any other bank because they call me a member, despite the fact I have the new member neutered rights. 

TheBanker

Nebulous2 said:

My first thought about this was - you win some, you lose some. Seeing all the annoyed people, I've wondered if I should change my mind, but even reflecting on it I'm finding it hard to find any sense of grievance. 

I'm not particularly annoyed - that's a strong word. Disappointed is the word I used. Unlike you, I do hold Nationwide to a higher standard as a mutual, simply because all of their promotional material makes a big thing about how they can act differently due to not having shareholders. 

Becles

TheBanker said:

A further thought from me.

Imagine two customers:
Mr Loyal has had a mortgage with Nationwide for many years and currently owes about £170k. He was on a fixed rate which ended a couple of months ago. He took out a new fix with Nationwide and paid a £999 product fee and is paying about 4% interest. The increased payments are a challenge for Mr Loyal, but he's not missed any or gone into arrears. Mr Loyal also recognises the importance of savings, so he holds an Instant Access saver with a balance of £10k, earning 1.25%. Mr Loyal does not know about MoneySavingExpert, and isn't aware that he could earn much more interest if he moved his savings to a bank.

Mr Switcher opened his Nationwide current account in October 2022. He switched an account he'd specifically opened for this purpose from another bank, including 2x£2 Direct Debits to charities. For this he received £200. He set up a Standing Order from his bank account to Nationwide for £1,000 per month in order to qualify for the 5% interest on his current account. Every month he immediately transfers the £1,000 back to his bank account. He keeps his Nationwide account at exactly £1,500 to earn the maximum interest possible. He also set up a Start to Save account, paying in £50 per month to earn 5% interest (now 5.25%). 

During February, March and April, Mr Switcher made sure he spent exactly £200 in supermarkets, to qualify for £10 per month cashback. My Switcher did not actually need to spend £200 in supermarkets, but he bought some gift cards in order to maximise the benefit he achieved from the promotion. When the February cashback was paid, Mr Switcher actually only received £9.94. He made a formal complaint to Nationwide about the missing six pence. This complaint centred on whether Wilkinsons is a supermarket. 

In February, Mr Switcher opened a second Nationwide current account. As soon as his card arrived, he switched this account out to Santander to generate another £200 bonus. 

In April, Mr Switcher received a bill which he had not budgeted for. But fear not, because he has an arranged overdraft with Nationwide which is charged at 0% for the first year. So he used this to cover the bill while he was waiting for a fixed-rate product elsewhere to mature. When the fix matured, Mr Switcher put his Nationwide balance back to exactly £1,500 to maximise his interest. 

Mr Loyal does not qualify for the £100, because he does not have a current account. Mr Switcher qualifies for the £100  due to the transactions on his current account, which were specifically generated by him to maximise his interest and cashback.

Mr Switcher's use of Nationwide's current accounts will have cost them money. They've paid him a switcher bonus, interest, cashback, and incurred the costs of dealing with a complaint about six pence, and the costs of setting up a new account which was immediately closed. 

Mr Loyal's mortgage and savings have generated profit for Nationwide.

Nationwide have, effectively, taken profit from Mr Loyal and given it to Mr Switcher. They are entitled to do this, but how they can describe this as 'Fairer' is beyond me. 

Ms Loyal here.

30+ years as a customer.

Savings criteria met.

Always have over £500 going in every month as all my income goes into Nationwide.

Always have over 2 payments going out every month as all my bills etc., are paid from Nationwide.

Miss out because I have two current accounts for budgeting reasons.

I have a long term chronic health condition. I don't have a full time job and instead work for several agencies doing part time/ad-hoc work. This works for me as I can do as much or as little work as my current health allows. This means I get several small paydays throughout the month.

To make it easier to budget, I have all the wages going into current account 1. It's been trickling in over the month of May. On the 31st May, I will transfer the balance to current account 2. Then I budget knowing this is is what I have to last me for the month of June and any excess I have left goes into savings. Repeat every month.

As the income goes into one current account and the payments come out of the other, I do not qualify.

I feel like I've been penalised because of the way I budget my money.

TheBanker

Becles said:

TheBanker said:

A further thought from me.

Imagine two customers:
Mr Loyal has had a mortgage with Nationwide for many years and currently owes about £170k. He was on a fixed rate which ended a couple of months ago. He took out a new fix with Nationwide and paid a £999 product fee and is paying about 4% interest. The increased payments are a challenge for Mr Loyal, but he's not missed any or gone into arrears. Mr Loyal also recognises the importance of savings, so he holds an Instant Access saver with a balance of £10k, earning 1.25%. Mr Loyal does not know about MoneySavingExpert, and isn't aware that he could earn much more interest if he moved his savings to a bank.

Mr Switcher opened his Nationwide current account in October 2022. He switched an account he'd specifically opened for this purpose from another bank, including 2x£2 Direct Debits to charities. For this he received £200. He set up a Standing Order from his bank account to Nationwide for £1,000 per month in order to qualify for the 5% interest on his current account. Every month he immediately transfers the £1,000 back to his bank account. He keeps his Nationwide account at exactly £1,500 to earn the maximum interest possible. He also set up a Start to Save account, paying in £50 per month to earn 5% interest (now 5.25%). 

During February, March and April, Mr Switcher made sure he spent exactly £200 in supermarkets, to qualify for £10 per month cashback. My Switcher did not actually need to spend £200 in supermarkets, but he bought some gift cards in order to maximise the benefit he achieved from the promotion. When the February cashback was paid, Mr Switcher actually only received £9.94. He made a formal complaint to Nationwide about the missing six pence. This complaint centred on whether Wilkinsons is a supermarket. 

In February, Mr Switcher opened a second Nationwide current account. As soon as his card arrived, he switched this account out to Santander to generate another £200 bonus. 

In April, Mr Switcher received a bill which he had not budgeted for. But fear not, because he has an arranged overdraft with Nationwide which is charged at 0% for the first year. So he used this to cover the bill while he was waiting for a fixed-rate product elsewhere to mature. When the fix matured, Mr Switcher put his Nationwide balance back to exactly £1,500 to maximise his interest. 

Mr Loyal does not qualify for the £100, because he does not have a current account. Mr Switcher qualifies for the £100  due to the transactions on his current account, which were specifically generated by him to maximise his interest and cashback.

Mr Switcher's use of Nationwide's current accounts will have cost them money. They've paid him a switcher bonus, interest, cashback, and incurred the costs of dealing with a complaint about six pence, and the costs of setting up a new account which was immediately closed. 

Mr Loyal's mortgage and savings have generated profit for Nationwide.

Nationwide have, effectively, taken profit from Mr Loyal and given it to Mr Switcher. They are entitled to do this, but how they can describe this as 'Fairer' is beyond me. 

Ms Loyal here.

30+ years as a customer.

Savings criteria met.

Always have over £500 going in every month as all my income goes into Nationwide.

Always have over 2 payments going out every month as all my bills etc., are paid from Nationwide.

Miss out because I have two current accounts for budgeting reasons.

I have a long term chronic health condition. I don't have a full time job and instead work for several agencies doing part time/ad-hoc work. This works for me as I can do as much or as little work as my current health allows. This means I get several small paydays throughout the month.

To make it easier to budget, I have all the wages going into current account 1. It's been trickling in over the month of May. On the 31st May, I will transfer the balance to current account 2. Then I budget knowing this is is what I have to last me for the month of June and any excess I have left goes into savings. Repeat every month.

As the income goes into one current account and the payments come out of the other, I do not qualify.

I feel like I've been penalised because of the way I budget my money.

I'd suggest writing to Nationwide about this. I have.

I've made it clear that I am not making a complaint (because they are entitled to set the criteria), and I do not expect to receive the £100 because I do not qualify.

I just wanted to make sure they are aware that, as a longstanding and I assume profitable member (not customer), their approach to distributing profits has left a bitter taste and made me question whether I actually want to be a member. They make a big deal about not paying profits to shareholders, but is paying them to other members based on arbitrary criteria really any different? 

Ed-1

Becles said:

TheBanker said:

A further thought from me.

Imagine two customers:
Mr Loyal has had a mortgage with Nationwide for many years and currently owes about £170k. He was on a fixed rate which ended a couple of months ago. He took out a new fix with Nationwide and paid a £999 product fee and is paying about 4% interest. The increased payments are a challenge for Mr Loyal, but he's not missed any or gone into arrears. Mr Loyal also recognises the importance of savings, so he holds an Instant Access saver with a balance of £10k, earning 1.25%. Mr Loyal does not know about MoneySavingExpert, and isn't aware that he could earn much more interest if he moved his savings to a bank.

Mr Switcher opened his Nationwide current account in October 2022. He switched an account he'd specifically opened for this purpose from another bank, including 2x£2 Direct Debits to charities. For this he received £200. He set up a Standing Order from his bank account to Nationwide for £1,000 per month in order to qualify for the 5% interest on his current account. Every month he immediately transfers the £1,000 back to his bank account. He keeps his Nationwide account at exactly £1,500 to earn the maximum interest possible. He also set up a Start to Save account, paying in £50 per month to earn 5% interest (now 5.25%). 

During February, March and April, Mr Switcher made sure he spent exactly £200 in supermarkets, to qualify for £10 per month cashback. My Switcher did not actually need to spend £200 in supermarkets, but he bought some gift cards in order to maximise the benefit he achieved from the promotion. When the February cashback was paid, Mr Switcher actually only received £9.94. He made a formal complaint to Nationwide about the missing six pence. This complaint centred on whether Wilkinsons is a supermarket. 

In February, Mr Switcher opened a second Nationwide current account. As soon as his card arrived, he switched this account out to Santander to generate another £200 bonus. 

In April, Mr Switcher received a bill which he had not budgeted for. But fear not, because he has an arranged overdraft with Nationwide which is charged at 0% for the first year. So he used this to cover the bill while he was waiting for a fixed-rate product elsewhere to mature. When the fix matured, Mr Switcher put his Nationwide balance back to exactly £1,500 to maximise his interest. 

Mr Loyal does not qualify for the £100, because he does not have a current account. Mr Switcher qualifies for the £100  due to the transactions on his current account, which were specifically generated by him to maximise his interest and cashback.

Mr Switcher's use of Nationwide's current accounts will have cost them money. They've paid him a switcher bonus, interest, cashback, and incurred the costs of dealing with a complaint about six pence, and the costs of setting up a new account which was immediately closed. 

Mr Loyal's mortgage and savings have generated profit for Nationwide.

Nationwide have, effectively, taken profit from Mr Loyal and given it to Mr Switcher. They are entitled to do this, but how they can describe this as 'Fairer' is beyond me. 

Ms Loyal here.

30+ years as a customer.

Savings criteria met.

Always have over £500 going in every month as all my income goes into Nationwide.

Always have over 2 payments going out every month as all my bills etc., are paid from Nationwide.

Miss out because I have two current accounts for budgeting reasons.

I have a long term chronic health condition. I don't have a full time job and instead work for several agencies doing part time/ad-hoc work. This works for me as I can do as much or as little work as my current health allows. This means I get several small paydays throughout the month.

To make it easier to budget, I have all the wages going into current account 1. It's been trickling in over the month of May. On the 31st May, I will transfer the balance to current account 2. Then I budget knowing this is is what I have to last me for the month of June and any excess I have left goes into savings. Repeat every month.

As the income goes into one current account and the payments come out of the other, I do not qualify.

I feel like I've been penalised because of the way I budget my money.

I agree that the criteria could have been an OR rather than an AND (i.e. paid in £500 or had 2 payments out). But I would as if it had been, like you I'd have qualified.

cannugec5

We are happy. Joint current account. Both have savings account. 2x £100. Result! 

Wishywashy74

I also received it, i've been with Nationwide for Mortgage, banking and saving since 2000.

Its nice and very welcome but i would prefer better rates on products.

Salinger

cheezeburger said:

How is this fair exactly? I have been a Nationwide Member for 20+ years but dont use the current account I have as my primary. I get NOTHING as a result.

So well done Nationwide, I wont be saving my money with you any longer. See if those you have described as "loyal" will still be saving with you next year?! Muppet outfit

Shame on MoneySavingExpert for portraying it as a fair payout. Utter joke! Are you really impartial?

100% agree. Had a savings account with them for over 30  years, balance in the £40,000 + in my ISA. I get nothing. Transferring my money elsewhere and hope all in siilar situation do the same. See how much they make when they've no money to lend!!! I've also made formal complaint for discrimination. 

TheBanker

Salinger said:

cheezeburger said:

How is this fair exactly? I have been a Nationwide Member for 20+ years but dont use the current account I have as my primary. I get NOTHING as a result.

So well done Nationwide, I wont be saving my money with you any longer. See if those you have described as "loyal" will still be saving with you next year?! Muppet outfit

Shame on MoneySavingExpert for portraying it as a fair payout. Utter joke! Are you really impartial?

100% agree. Had a savings account with them for over 30  years, balance in the £40,000 + in my ISA. I get nothing. Transferring my money elsewhere and hope all in siilar situation do the same. See how much they make when they've no money to lend!!! I've also made formal complaint for discrimination. 

Don't claim Discrimination. It isn't (they have not allocated the money based on consideration of any protected characteristics under the Equalities Act). If you claim Discrimination they may focus on that in their reply, rather than your legitimate grievance.

My savings account is closed. Current account balance now £1 ready to switch. Mortgage will stay until my fixed rate ends, then that will go too.