£100 payment - Nationwide Fairer Share

WillPS

castle96 said:

Roll on demutualisation. I am still a carpetbagger on NW

Highly unlikely to succeed. Mandatory charitable assignment since 1997 means that for every day that goes by, as pre-1997 members leave the society (either through death or account closure) and new members join the proportion of people who would gain anything from it gets smaller and smaller. I wouldn't be surprised if there is already a majority of members who are already subject to charitable assignment.

It was something of a masterstroke on the part of the society to ensure they remain a mutual as long as they remain viable.

PegasusPJ

Bridlington1 said:

allison445 said:

General_Grant said:

14wishy said:

I find the qualifying criteria for this payment very unfair. I have been a Nationwide customer for 25yrs. Held numerous savings accounts, ISAs, credit cards and current accounts over those years. So as a long term loyal customer member who, in March and currently has no savings account with them due to very poor rates, I will not qualify along with all their other members for this fairer fund.

Not very fair. Time to leave me thinks! 

Really?  5.25% "very poor"?

This rate is for saving between 25 and 50 a month its not for lump sum amounts the Nationwide interest rates have been stagnant for a while at the end of last year even TSB were paying more on there fixed term accounts

That hardly makes it a poor rate though. It is a very good rate with restrictions on the amount you can deposit, just like many other regular savers on offer. It's currently my 5th highest paying regular saver out of my 29-strong collection which isn't bad going when you consider that 2 of those accounts I have that beat it are now NLA.

Whilst I would of course like to be able to put more in it each month or for the rate to increase further (who wouldn't), I for one am happy with this 5.25% regular saver.

This is why I opened one in March, but because of the very low amount you can put in (almost didn't bother.. I've had several ones with them over the years, but this is so paltry), I'm missing the qualifying £100 by 6 days (like the other poster, had current account for 25 years, many savers accounts over the years, still have a CC, though don't use it anymore)

allison445

Sarahspangles said:

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

Sarahspangles said:

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

As Mike says...

https://youtu.be/PyHr-4SeILI

wmb194

Sarahspangles said:

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

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.

yippeekiay

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

yippeekiay

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.

TheBanker

Meanwhile the BBC report:
https://www.bbc.co.uk/news/business-65713905

Britain's biggest building society has said it will increase some of its mortgage rates from Friday due to the current economic outlook.

Nationwide said rates on new fixed deals will rise by up to 0.45 percentage points.

It comes amid expectations the Bank of England will have to raise interest rates higher than previously thought.

So the mortgage holders pay more, but the savers don't earn more. I guess this is to generate the next lot of profit to give to the current account holders!