Nationwide's 'Fairer Share' £100 payment for eligible members

zagfles

Band7 said:

lindabea said:

Although it's always nice to receive 'free' money, I'm somewhat annoyed that it is tax deductible. So the payment would be worth £80 to a basic rate tax payer.  Perhaps it should have been regarded in a similar way to the incentive payments made to current account switchers - which as I understand it is not treated as interest whereas the £100 payment is treated as interest and reported to HMRC as such..    

Spare a thought for the HR tax payers who will be left with £20 less than you are lucky enough to get. Not to mention the many longstanding Nationwide members who get £0 because they don't meet the eligibility criteria.

Or those who are on the cusp of higher rate tax and receive a marriage allowance transfer, this extra £100 could cost them £252 , as it's a cliff edge thing!

(yes it's early in the tax year, and those who realise could take steps to avoid, but some might get caught out)

Section62

zagfles said:

Band7 said:

lindabea said:

Although it's always nice to receive 'free' money, I'm somewhat annoyed that it is tax deductible. So the payment would be worth £80 to a basic rate tax payer.  Perhaps it should have been regarded in a similar way to the incentive payments made to current account switchers - which as I understand it is not treated as interest whereas the £100 payment is treated as interest and reported to HMRC as such..    

Spare a thought for the HR tax payers who will be left with £20 less than you are lucky enough to get. Not to mention the many longstanding Nationwide members who get £0 because they don't meet the eligibility criteria.

Or those who are on the cusp of higher rate tax and receive a marriage allowance transfer, this extra £100 could cost them £252 , as it's a cliff edge thing!

(yes it's early in the tax year, and those who realise could take steps to avoid, but some might get caught out)

There is an option of refusing the payment... I wonder how many people will take that up, and what will happen to their share of the funds?

zagfles

Section62 said:

zagfles said:

Band7 said:

lindabea said:

Although it's always nice to receive 'free' money, I'm somewhat annoyed that it is tax deductible. So the payment would be worth £80 to a basic rate tax payer.  Perhaps it should have been regarded in a similar way to the incentive payments made to current account switchers - which as I understand it is not treated as interest whereas the £100 payment is treated as interest and reported to HMRC as such..    

Spare a thought for the HR tax payers who will be left with £20 less than you are lucky enough to get. Not to mention the many longstanding Nationwide members who get £0 because they don't meet the eligibility criteria.

Or those who are on the cusp of higher rate tax and receive a marriage allowance transfer, this extra £100 could cost them £252 , as it's a cliff edge thing!

(yes it's early in the tax year, and those who realise could take steps to avoid, but some might get caught out)

There is an option of refusing the payment... I wonder how many people will take that up, and what will happen to their share of the funds?

It wouldn't really be sensible to refuse it, loads of things you could do to avoid issues like the MAT, eg gift aid, pension contributions etc, it's people who don't realise the issue till it's too late. It'll be rare obviously.

clowning

I've had a current account for a few years that I only pay a small amount in to cover some DD's, and had a regular saver, but sadly won't qualify. Happy for those that do though. A nice little bonus (even with tax deducted)

hallmark

Quite cunning calcs by nw IMO.

This is essentially a small "windfall" (compared to demutualisations) that requires both the standard £100 savings or mortgage AND effectively a current account with NW.  So it won't get paid to carpetbaggers.

And the prospect of similar payments to come, but with moving goalposts, to lure in / keep people in.

IMO they should have offered a sop to people who just miss out. For example, £100 savings & a current acct of any type = £something.

John464

What would have been fair would have been giving better interest rates to everyone like they used to do
How much are we paying the CEO to dream this one up?

TheBanker

hallmark said:

Quite cunning calcs by nw IMO.

This is essentially a small "windfall" (compared to demutualisations) that requires both the standard £100 savings or mortgage AND effectively a current account with NW.  So it won't get paid to carpetbaggers.

And the prospect of similar payments to come, but with moving goalposts, to lure in / keep people in.

IMO they should have offered a sop to people who just miss out. For example, £100 savings & a current acct of any type = £something.

The thing is, I meet both the mortgage and savings qualifying criteria. But not the current account criteria. Does this make me a 'carpetbagger', given I signed away my entitlement to any de-mutualisation benefits when I became a member.

I would have thought my £200k mortgage generated more of the profit that's being distributed than someone who switched into a FlexDirect account last year for the £200 switching bonus, pays in £1,000 per month to qualify for the 5% interest then immediatly most of it, and has £100 in a savings account. Yet I don't qualify, the other person does.  

metrobus

Ocelot said:

pearl123 said:

It's quite ironic they're calling it a Fairer Share. Not fair at all, that some Nationwide members are missing out. 

Apparently only 15% or so of customers will receive the bonus. Not me either.

3.4 million are receiving it, by your calls that means they have about 22 million members

BreakingGlass

I was quite surprised that I qualify because as far as I could recall I only have a current account with NW. 

Then I remembered; back in the middle of March I was transferring approx £85k between two non-NW savings accounts, and did so via my NW current account. I moved the money to NW easily, but was then blocked from transferring more than the (new) NW daily limit of £25k to the other savings account. I kicked up a fuss and complained to NW, but was still unable to make further transfers. 

Frustrated at having £60k stuck in a current account earning no interest for a couple of days whilst I moved it out in stages, I opened a NW Triple Access savings account with the ‘trapped’ money. Over the next three days I withdrew £25k, £25k and then the final £10k to close the Triple Access account - I think I received about £5 interest!

Anyway two months later and my three days of NW savings has resulted in a £100 bonus!  A great result, and I think the phrase is ‘poetic irony’. 

TheBanker

metrobus said:

Ocelot said:

pearl123 said:

It's quite ironic they're calling it a Fairer Share. Not fair at all, that some Nationwide members are missing out. 

Apparently only 15% or so of customers will receive the bonus. Not me either.

3.4 million are receiving it, by your calls that means they have about 22 million members

Their 2022 annual report claims 16.3m members: https://www.nationwide.co.uk/-/assets/nationwidecouk/documents/about/how-we-are-run/results-and-accounts/2021-2022/annual-report-and-accounts-2022.pdf

May have increased since then, but I wouldn't have expected to have jumped by six million.

The CASS dashboard shows a net gain of 111k current accounts during Q1 2023.