£100 payment - Nationwide Fairer Share

Section62

Sarahspangles said:

They aren’t the only bank or building society that’s moving back towards rewarding longer term loyalty - the YBS Loyalty Six eISA requires you to have had savings or a mortgage for at least twelve months.

It can’t be cost effective for banks and building societies to have all these zombie accounts feeding each other money to artificially make it look like people are now customers, just to qualify for incentives. It’s like stoozing - it was legal and it was lucrative, but also it was a ‘loophole’ and in the long run it wasn't sustainable for providers.

Nationwide aren't "moving back towards rewarding longer term loyalty" - quite the opposite.  There's no element of this payout which relates to long-term loyalty.

Instead it incentivises people to push money through what would otherwise be "zombie accounts" to artificially make it look like they have a "main" current account with Nationwide for a few months of the year.

Are you really thinking Nationwide were seeking to move towards a more sustainable position with fewer of these accounts?  If so, they have failed miserably.

xylophone

https://www.nationwide.co.uk/news-and-stories/fairer-share/

Oh per-lease!

Fair? This arbitrary hand out to those members who were more equal than others?

Yorkshire_Pud

Section62 said:

Sarahspangles said:

They aren’t the only bank or building society that’s moving back towards rewarding longer term loyalty - the YBS Loyalty Six eISA requires you to have had savings or a mortgage for at least twelve months.

It can’t be cost effective for banks and building societies to have all these zombie accounts feeding each other money to artificially make it look like people are now customers, just to qualify for incentives. It’s like stoozing - it was legal and it was lucrative, but also it was a ‘loophole’ and in the long run it wasn't sustainable for providers.

Nationwide aren't "moving back towards rewarding longer term loyalty" - quite the opposite.  There's no element of this payout which relates to long-term loyalty.

Instead it incentivises people to push money through what would otherwise be "zombie accounts" to artificially make it look like they have a "main" current account with Nationwide for a few months of the year.

Are you really thinking Nationwide were seeking to move towards a more sustainable position with fewer of these accounts?  If so, they have failed miserably.

CEO of Nationwide Debbie Crosby was ceo of tsb a while back around 2019 when they were offering their Quidco £50 up down up down offer when opening tsb current accounts. She seems a bit gimmicky so no surprise to find the recent NBS three month £10 to spend £200 on a nationwide current account and now this short term partial to only a few £100 payment.

I’m a long term member of this ‘mutual’ organisation but I get nothing as I transferred my nationwide isa last year when they took so long to inform on their rate increase.

Sour grapes? Yes. Share the money around not just to a few. Leaves a nasty sour taste in the mouth.

jim1999

I agree.  I think I'll put a complaint in later this week.  Given that they're not even bothering to write out proper responses to people who provide feedback, I'll make it a complaint.  They can hand the cash over to the ombudsman instead.

They're well within their rights to pick who they reward, of course, but for a member-owned organisations it's totally wrong to start creating new definitions of "loyalty" that eliminate long-term members.  If I can make them suffer for a few minutes' effort, so be it.

km1500

I kind of agree - I think if you are affected by this maybe you could consider making a complaint

in my view the complaint should be along the lines that they have some excess money but they are being unfair in the way they are distributing as it should go to all the members in one way or another rather than a select few

DS_MSE

Have you read the Nationwide Corporate Media announcement dated 19/05/23 ? (www.nationwidemediacentre.co.uk/news)

Para 6 States: ‘The Nationwide Fairer Share Payment will see members with the deepest relationships rewarded with £100’

I don’t know about anyone else but I think this sadly says it all, since I don’t think any Member who has only had a Current Account since January, Paid in £500 on 2 separate Months and happened to invest £100 of that same £1000 into a Savings account both by the end of March, could in anyone’s book or by any stretch of imagination, ever be described as having in under 5 Months, developed a ‘deep relationship’ with Nationwide !  … mind you ‘hats off’ as a good return for them - equivalent to 4.16 % and even better for qualifying  Joint Account holders @ 8.33% in just 5 Months !

Shame the rest of us aren’t getting the similar returns for our Savings where Nationwide as of COB today (22/05/23) is yet again paying up to 0.40% less than some comparable products from other mainstream Building Societies  … mind you when they waste money on Headline Grabbing Gimmicks and ‘buying’ new Current Account Members, that perhaps is to be expected.

km1500

The only reason I can think of for them treating members so badly is that they are thinking of de-mutualising

TheElectricCow

DS_MSE said:

… mind you ‘hats off’ as a good return for them - equivalent to 4.16 % and even better for qualifying  Joint Account holders @ 8.33% in just 5 Months !

Shame the rest of us aren’t getting the similar returns for our Savings where Nationwide as of COB today (22/05/23) is yet again paying up to 0.40% less than some comparable products from other mainstream Building Societies  … mind you when they waste money on Headline Grabbing Gimmicks and ‘buying’ new Current Account Members, that perhaps is to be expected.

I found this to be an interesting thought which prompted me to check the numbers on my own Nationwide current account that I’ve held for ~6 months with £1500. I’ve had £36.26 in interest, a £200 switching bonus, and soon will receive this extra £100, totalling £336.26 in money from Nationwide. 

That’s a 22.4% return for me in those 6 months, so clearly my relationship with Nationwide must be very deep! 

Seems like a highly inefficient use of their funds from my perspective as they’re unlikely to ever see that amount back from my custom with them, but if they want to keep throwing money at me who am I to refuse?

TheBanker

TheElectricCow said:

DS_MSE said:

… mind you ‘hats off’ as a good return for them - equivalent to 4.16 % and even better for qualifying  Joint Account holders @ 8.33% in just 5 Months !

Shame the rest of us aren’t getting the similar returns for our Savings where Nationwide as of COB today (22/05/23) is yet again paying up to 0.40% less than some comparable products from other mainstream Building Societies  … mind you when they waste money on Headline Grabbing Gimmicks and ‘buying’ new Current Account Members, that perhaps is to be expected.

I found this to be an interesting thought which prompted me to check the numbers on my own Nationwide current account that I’ve held for ~6 months with £1500. I’ve had £36.26 in interest, a £200 switching bonus, and soon will receive this extra £100, totalling £336.26 in money from Nationwide. 

That’s a 22.4% return for me in those 6 months, so clearly my relationship with Nationwide must be very deep! 

Seems like a highly inefficient use of their funds from my perspective as they’re unlikely to ever see that amount back from my custom with them, but if they want to keep throwing money at me who am I to refuse?

You missed out - you could have got £30 supermarket cashback too.

Meanwhile I've paid £1,361 interest on my mortgage so far this year. I think the saver who deposited the money I borrowed will have earned about £900 interest. It seems you're the one whose benefited most out of this!

Section62

TheElectricCow said:

That’s a 22.4% return for me in those 6 months, so clearly my relationship with Nationwide must be very deep! 

If Nationwide were a "shareholder-owned bank" people would be jumping up and down demanding a windfall tax on that level of profits.