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£100 payment - Nationwide Fairer Share

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Comments

  • allison445
    allison445 Posts: 765 Forumite
    Part of the Furniture 500 Posts Photogenic Combo Breaker
    There was a bit in the Guardian which suggests they are planning to do this annually.

    https://www.theguardian.com/business/2023/may/19/nationwide-to-pay-340m-of-profits-directly-into-customers-accounts
    To be eligible, members must use Nationwide as their main current account and have one other product – either a savings account or a mortgage – with a minimum £100 balance.
    I understand not everyone thinks the criteria are fair but I haven’t seen any bad press so far and people who have their current account with another bank can get a similar dividend by becoming a shareholder.
    This is actually wrong as my only current account is with Nationwide and I have savings with them as well but I do not qualify as there are other criteria on top of this

    I am most annoyed at the misleading information from nationwide and other news sources as when I seen the headline I thought it included me .
  • gt94sss2
    gt94sss2 Posts: 6,158 Forumite
    Part of the Furniture 1,000 Posts Name Dropper Combo Breaker
    I understand not everyone thinks the criteria are fair but I haven’t seen any bad press so far and people who have their current account with another bank can get a similar dividend by becoming a shareholder.
    There has been some negative press

    https://www.lbc.co.uk/news/nationwide-payment-who-gets-them/

    https://www.thisismoney.co.uk/money/saving/article-12105987/12m-Nationwide-customers-miss-100.html

    https://www.gbnews.com/money/nationwide-free-bonus-loyal-members-strict-rules

    https://www.thesun.co.uk/money/22430906/nationwide-banking-free-cash-customers/

    I think the difference is that if you are a shareholder, you get a dividend, while most members(shareholders) of Nationwide miss out so I can understand why many are unhappy.
  • GingerTim
    GingerTim Posts: 2,649 Forumite
    Part of the Furniture 1,000 Posts Name Dropper Combo Breaker
    edited 26 May 2023 at 7:03AM
  • wmb194
    wmb194 Posts: 5,059 Forumite
    Part of the Furniture 1,000 Posts Name Dropper Photogenic
    edited 25 May 2023 at 7:58PM
    There was a bit in the Guardian which suggests they are planning to do this annually.

    https://www.theguardian.com/business/2023/may/19/nationwide-to-pay-340m-of-profits-directly-into-customers-accounts
    To be eligible, members must use Nationwide as their main current account and have one other product – either a savings account or a mortgage – with a minimum £100 balance.
    I understand not everyone thinks the criteria are fair but I haven’t seen any bad press so far and people who have their current account with another bank can get a similar dividend by becoming a shareholder.
    Buying shares is not equivalent because you need to risk your capital, which is not something you have to do with this 'fair' dividend from Nationwide. Including 0.5% stamp duty, to potentially receive a £100 dividend in the next year from HSBC at the current trailing yield of 4.46%, at the moment you'd need to buy roughly £2,250 worth of shares.

    On the plus side at least you know where you stand when you're a shareholder in a conventional company.
  • Sarahspangles
    Sarahspangles Posts: 3,239 Forumite
    Part of the Furniture 1,000 Posts Name Dropper
    edited 25 May 2023 at 8:13PM
    I must admit I was a bit perturbed to read I’m a member in a ‘deeper relationship’ with Nationwide. The others are just side chicks.

    Joking aside, the fact Nationwide was still a mutual was one reason I chose them when NatWest peed me off for the last time. This was just after the round of demutualisation across societies. Since then, I haven’t always had the top rates but I think they’ve been fair and I’ve always been able to get into a branch when I need to.
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  • yippeekiay
    yippeekiay Posts: 35 Forumite
    Part of the Furniture 10 Posts Combo Breaker
    Same for me...
    35+ years as a current account customer.
    Had several mortgages in the past with them - all paid off.
    Also have two seperate savings accounts currently with them.
    All my direct debits come from this current account (utilities etc)
    I haven't paid anything into them for a while as I'm in early retirement living off my savings until pension age.
    Therefore;- I don't qualify due to that last point
    So 35+ years loyalty totally disregarded.

    I was going to send an online message to complain but they can shove their £100 - I'm now looking to switch elsewhere & hope they ask me why - I very much doubt it as I'm not a good enough customer I guess :s
  • yippeekiay
    yippeekiay Posts: 35 Forumite
    Part of the Furniture 10 Posts Combo Breaker
    edited 26 May 2023 at 1:48AM
    35+ years as a current account holder with past mortgages & loans all paid off on time/in full, but because I chose early retirement (thus living off my Nationwide savings accounts) and have no ingoing payments (yet many DD) I will NOT recieve this "fairer" sharer payout.
    I think it's fair that I switch my loyalty elsewhere for cashback if that's how they think loyaly should be returned.
  • DS_MSE
    DS_MSE Posts: 27 Forumite
    10 Posts First Anniversary
    edited 26 May 2023 at 6:47AM

    Surprise - Nationwide have apparently raised their underlying Mortgage Rates today by up to 0.45%, in response to the BoE Base Rate Inc on 11th May and yet 15 Days later still no announcement regarding their Savings Rates when all but one of all the other mainstream Building Societies have either increased their rates already or announced increases from 1st June.

    So much for ‘Member Financial Benefits’ through Better Rates ! … I wonder how much profit Nationwide makes each day whilst they drag this out, or are we going to have to wait another 4½ Months and 2 further BoE Increases, as we did from Nov 22 - April 23, before Nationwide ‘rewards’ its Savers … mind you I guess the longer they wait, the less they will have to pay out, as their disenchanted Savers withdraw their funds and move them elsewhere !

    Also seems odd to me how Nationwide’s business model clearly now gives so much more weight and importance to Current Account Holders with only £33 Bn on Deposit compared to its Savers with £154 Bn that surely must be more stable and cost them far less to manage.

    In fact, perhaps I have answered my own question and their level of Savings Deposits @ £154 Bn is so great and perhaps comprises of so many longer standing more traditional Building Soc Savers that they believe they are ‘Bomb Proof’ and although they may lose some, this pool is so large, even if they hack off several thousands of savers, they are confident that this will have little to no effect on their Liquidity Ratio. 

  • inkydolphin
    inkydolphin Posts: 220 Forumite
    Seventh Anniversary 100 Posts Photogenic Name Dropper
    These multiple threads, two with exactly the same subject, need merging. I think we get the message. 
This discussion has been closed.
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