£100 payment - Nationwide Fairer Share

Hantsboy1

Are you suggesting that they decided on a figure of £100 then fixed the criteria to limit the payout? They could have chosen many other criteria that would have been fairer to longer standing members.  Or simply increased their rates, as the Parliamentary Committee was hinting at.

Section62

DE_612183 said:

Nationwide have 16.3 million members, but only about 3.6 million have two or more products ( there is probably less than that that fulfill criteria ).

To pay £100 to everyone would have cost them significantly more ( five times at least ) or they could have given every one £20.... 

Of course, those are two basic facts.

It doesn't alter whether or not what Nationwide have decided to do is fair way to distribute £340m between 16.3m members.

I also noticed the 3.6m figure this morning.... surprising so few members have more than one Nationwide product.

It also implies there's only ~200,000 members who have two products (or more) but failed to meet one of the funding criteria.

brummierebel

I agree with those who say the profits should never have got this high in the first place and that it should be distributed through better interest rates on savings and mortgage accounts, but I have are a couple of points in their defence:

1) The profits have been created this year because their interest rates have not kept up with the rise in the BofE base rate, so it makes sense to reward current customers rather than those with a historic relationship with Nationwide
2) NW current accounts are significantly worse now than five years ago: for example, the FlexDirect used to have 1% interest on balances up to £2500 (now 0.25% up to £1500), there were cashback offers and regular savers that combined matched if not exceeded the rewards on the other current account on the market. Similarly the FlexPlus used to have 3% interest. As interest rates plummeted, these perks were gradually withdrawn so that their current account is not really competitive at the moment except for switching bonuses and the initial 5% interest on the FlexDirect. So it does make sense to reward those who are using their current account regularly because my subjective opinion is they have been hit the hardest by the changes in the market over the last few years.

SevenOfNine

km1500 said:

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

GREAT, I'll keep my fingers crossed for that! Had a passbook savings a/c from 1991-1998. Trans to a new passbook then & on to an ISA in 2009. Been bouncing to new ISA's with N/W in 2010, 2013, 2015, 2018, 2021, 2023, NEVER withdrawn only transferring since 1991.  

De-mutualisation - bring it on, I'm not a "charity member"! Kept my passbooks & all ISA certs. 

oap71

MSE_Petar said:

Hi everyone,

Thanks for the discussion.

Just to note we've published an MSE News story about this which you can read here: Nationwide to pay loyal customers £100 each – here's who qualifies and when you'll get the cash

Thanks,
MSE Petar

Thanks but as having Flexi account for 30 years , expired mortgage for 20 years. I'm not eligible as I don't have a Saving or Mortgage as of March 23.

How is that fair, the eligibility is not fairer
 

Maiziex

Both me and my husband got a letter from nationwide about the £100 payment.
As we have a joint current account and joint savings assumed we would receive 1 payment 🙂

allison445

Has anyone who filled a complaint received a response yet ?

wmb194

Hantsboy1 said:

Are you suggesting that they decided on a figure of £100 then fixed the criteria to limit the payout? They could have chosen many other criteria that would have been fairer to longer standing members.  Or simply increased their rates, as the Parliamentary Committee was hinting at.

Probably. From a marketing perspective £100 sounds a lot more impressive and headline worthy than £20 and it's been working very hard in recent months to push its current accounts.

allison445

some replies to complaints made have been posted on Facebook

We’ve got a decision for you

We are writing in response to your complaint about the Nationwide Fairer Share Payment and to let you know we have looked into your concerns.

We value all our members, and we always want to hear their views but, on this occasion, we are really sorry, we cannot agree with your complaint.

Here is why

The Nationwide Fairer Share Payment is a way of recognising the particular contribution of those members who have a deeper relationship with us and use us for their most important everyday financial needs. These are those members who not only have their main bank account with us, but also a mortgage or savings of more than £100.

The Nationwide Fairer Share Payment is just one way in which we seek to reward our members. We also reward members in other ways, such as through our competitive mortgage and savings rates, including our Fairer Share Bonds which are paying 4.75% AER/gross a year (fixed) for two years*. These are available for a limited period to all our members - online and in our branches. You just needed to be a member on 18 May 2023 to be eligible and still be a member when you apply.

We work out how much extra value we provide in better pricing and incentives compared to the market average. Last year, this member financial benefit was over £1 billion, more than 70% of which was value that we returned to our savings members in better rates. Initiatives like our free cost of living helpline, and our commitment to our branches are also ways in which we seek to return value to all our members.

scepticOfCheltenham

allison445 said:

some replies to complaints made have been posted on Facebook

We’ve got a decision for you

We are writing in response to your complaint about the Nationwide Fairer Share Payment and to let you know we have looked into your concerns.

We value all our members, and we always want to hear their views but, on this occasion, we are really sorry, we cannot agree with your complaint.

Here is why

The Nationwide Fairer Share Payment is a way of recognising the particular contribution of those members who have a deeper relationship with us and use us for their most important everyday financial needs. These are those members who not only have their main bank account with us, but also a mortgage or savings of more than £100.

The Nationwide Fairer Share Payment is just one way in which we seek to reward our members. We also reward members in other ways, such as through our competitive mortgage and savings rates, including our Fairer Share Bonds which are paying 4.75% AER/gross a year (fixed) for two years*. These are available for a limited period to all our members - online and in our branches. You just needed to be a member on 18 May 2023 to be eligible and still be a member when you apply.

We work out how much extra value we provide in better pricing and incentives compared to the market average. Last year, this member financial benefit was over £1 billion, more than 70% of which was value that we returned to our savings members in better rates. Initiatives like our free cost of living helpline, and our commitment to our branches are also ways in which we seek to return value to all our members.

I can't speak for mortgage rates, but 'competitive rates for savers' has to be a joke.  Their instant access rate of 2.5% is way down on the best offerings elsewhere. 

They do have a wonderful 5.25% on their 'Start to Save' account.  But (like the fairer share payment) is another lottery and is suitable for 'Savers who want a chance to win £250'.  I suppose it is also useful for people who would like a slice of the fairer share lottery that might happen next year.  Probably worth a punt at £25 per month.