Nationwide Fairer Share Payment 2024

smk77

WillPS said:

smk77 said:

TheBanker said:

intalex said:

For me it is (rightly) not weighted on how profitable each customer is, but it certainly is biased on specific member usage activity.

It is almost entirely an incentive to take up and use one of their current accounts one way or another, even the current account switch offer is intertwined with this payout such that you get paid either to use existing current account or to switch in another active current account, not both.

Kind of like mobile operators (used to? still do?) fight hard to increase active subscribers first and foremost and then worry about how to stimulate revenues out of each one.

Why call it members' loyalty when it's literally just a current account users' loyalty? Feels wrong!

Even the discussion for this payout is in the MSE current account forum, not the savings account forum (despite the payout being allegedly taxable like savings interest).

I think they would argue that having an active current account demonstrates 'loyalty', whereas I imagine most customers with mortgages simply selected Nationwide because they had the best rate at the time and they're now on a fixed rate with ERCs. I imagine the same applies to a lot of savers, although there will be some savers who just stick with Nationwide out of inertia (is that another word for loyalty?), or for other reasons e.g. they want access through a local branch. 

For most people, having an active current account doesn't make the bank money. Salary goes in and most goes out the next day on bills. Surely, it's the saving and mortgages that make the profits?

I think the theory is that one naturally leads to the other.

There must be something in it as it's the avenue through which half a dozen challengers have entered the market, and now Coventry are buying the Co-op Bank seemingly motivated by getting a foothold in this same market...

Maybe they need to consider customers with mortgages or savings longer than X years to be loyal customers even if they don't meet the current account criteria. Not someone who has just rocked up on a 2 year fixed.

PRAISETHESUN

boingy said:

smk77 said:

Note to self. Pay in £1000 Jan, Feb, Mar 2025 and make 10x £100 transactions back into the funding account.

After missing out on last year that's what I did this year, except only £600 in and two transactions out. All done with standing orders so zero effort once it was set up. I'll do the same next year as well but I'll probably increase the amount and the transaction count a little, just in case they tweak the criteria. Turns out I am now a valued current account customer ;p

Same here - I was expecting a big increase so I set up £1500 in, and 5x transactions out. All funded by SO on the first of the month so no input is required. Alternatively, you could just do a CASS switch with a spare donor account with Chase or something every January and that also seems to tick the current account boxes.

WillPS

smk77 said:

WillPS said:

smk77 said:

TheBanker said:

intalex said:

For me it is (rightly) not weighted on how profitable each customer is, but it certainly is biased on specific member usage activity.

It is almost entirely an incentive to take up and use one of their current accounts one way or another, even the current account switch offer is intertwined with this payout such that you get paid either to use existing current account or to switch in another active current account, not both.

Kind of like mobile operators (used to? still do?) fight hard to increase active subscribers first and foremost and then worry about how to stimulate revenues out of each one.

Why call it members' loyalty when it's literally just a current account users' loyalty? Feels wrong!

Even the discussion for this payout is in the MSE current account forum, not the savings account forum (despite the payout being allegedly taxable like savings interest).

I think they would argue that having an active current account demonstrates 'loyalty', whereas I imagine most customers with mortgages simply selected Nationwide because they had the best rate at the time and they're now on a fixed rate with ERCs. I imagine the same applies to a lot of savers, although there will be some savers who just stick with Nationwide out of inertia (is that another word for loyalty?), or for other reasons e.g. they want access through a local branch. 

For most people, having an active current account doesn't make the bank money. Salary goes in and most goes out the next day on bills. Surely, it's the saving and mortgages that make the profits?

I think the theory is that one naturally leads to the other.

There must be something in it as it's the avenue through which half a dozen challengers have entered the market, and now Coventry are buying the Co-op Bank seemingly motivated by getting a foothold in this same market...

Maybe they need to consider customers with mortgages or savings longer than X years to be loyal customers even if they don't meet the current account criteria. Not someone who has just rocked up on a 2 year fixed.

They might well do, but that's not really relevant. The "Fairer Share" is not a loyalty payment, it's a reward payment, exclusively for members with a set of products, one of which must be a current account.

smk77

boingy said:

smk77 said:

Note to self. Pay in £1000 Jan, Feb, Mar 2025 and make 10x £100 transactions back into the funding account.

After missing out on last year that's what I did this year, except only £600 in and two transactions out. All done with standing orders so zero effort once it was set up. I'll do the same next year as well but I'll probably increase the amount and the transaction count a little, just in case they tweak the criteria. Turns out I am now a valued current account customer ;p

I had over £20k going into the account in January from a non-nationwide account.But only £300 in February although there was £1k from a Nationwide savings account. March, over £20k went in but that was from my own Nationwide FlexPlus account. I'd thought that with all that money going in and out, I'd easily qualify.

WillPS

smk77 said:

boingy said:

smk77 said:

Note to self. Pay in £1000 Jan, Feb, Mar 2025 and make 10x £100 transactions back into the funding account.

After missing out on last year that's what I did this year, except only £600 in and two transactions out. All done with standing orders so zero effort once it was set up. I'll do the same next year as well but I'll probably increase the amount and the transaction count a little, just in case they tweak the criteria. Turns out I am now a valued current account customer ;p

I had over £20k going into the account in January from a non-nationwide account.But only £300 in February although there was £1k from a Nationwide savings account. March, over £20k went in but that was from my own Nationwide FlexPlus account. I'd thought that with all that money going in and out, I'd easily qualify.

Last years terms were online the whole time since the offer. I appreciate there was no need guarantee they'd be completely static but if your aim was to be as 'eligible' as possible then surely the least you should be doing is making sure you scrape through under the last published terms.

I'm afraid you have only yourselves to blame in this instance. Try again next year, as you say, and double check this year's terms when you do.

flaneurs_lobster

smk77 said:

WillPS said:

smk77 said:

TheBanker said:

intalex said:

For me it is (rightly) not weighted on how profitable each customer is, but it certainly is biased on specific member usage activity.

It is almost entirely an incentive to take up and use one of their current accounts one way or another, even the current account switch offer is intertwined with this payout such that you get paid either to use existing current account or to switch in another active current account, not both.

Kind of like mobile operators (used to? still do?) fight hard to increase active subscribers first and foremost and then worry about how to stimulate revenues out of each one.

Why call it members' loyalty when it's literally just a current account users' loyalty? Feels wrong!

Even the discussion for this payout is in the MSE current account forum, not the savings account forum (despite the payout being allegedly taxable like savings interest).

I think they would argue that having an active current account demonstrates 'loyalty', whereas I imagine most customers with mortgages simply selected Nationwide because they had the best rate at the time and they're now on a fixed rate with ERCs. I imagine the same applies to a lot of savers, although there will be some savers who just stick with Nationwide out of inertia (is that another word for loyalty?), or for other reasons e.g. they want access through a local branch. 

For most people, having an active current account doesn't make the bank money. Salary goes in and most goes out the next day on bills. Surely, it's the saving and mortgages that make the profits?

I think the theory is that one naturally leads to the other.

There must be something in it as it's the avenue through which half a dozen challengers have entered the market, and now Coventry are buying the Co-op Bank seemingly motivated by getting a foothold in this same market...

Maybe they need to consider customers with mortgages or savings longer than X years to be loyal customers even if they don't meet the current account criteria. Not someone who has just rocked up on a 2 year fixed.

People do seem to be exercised by the term "loyalty". Don't know why, Nationwide don't use the term in their puff about the bonus, preferring "Fairer Share".

It's a promotion for their current accounts. It's primary objective is to persuade those members who don't have one to get one. 

It's what it was last year. Did people think it would be changed significantly this year? Or next?

TheBanker

smk77 said:

TheBanker said:

intalex said:

For me it is (rightly) not weighted on how profitable each customer is, but it certainly is biased on specific member usage activity.

It is almost entirely an incentive to take up and use one of their current accounts one way or another, even the current account switch offer is intertwined with this payout such that you get paid either to use existing current account or to switch in another active current account, not both.

Kind of like mobile operators (used to? still do?) fight hard to increase active subscribers first and foremost and then worry about how to stimulate revenues out of each one.

Why call it members' loyalty when it's literally just a current account users' loyalty? Feels wrong!

Even the discussion for this payout is in the MSE current account forum, not the savings account forum (despite the payout being allegedly taxable like savings interest).

I think they would argue that having an active current account demonstrates 'loyalty', whereas I imagine most customers with mortgages simply selected Nationwide because they had the best rate at the time and they're now on a fixed rate with ERCs. I imagine the same applies to a lot of savers, although there will be some savers who just stick with Nationwide out of inertia (is that another word for loyalty?), or for other reasons e.g. they want access through a local branch. 

For most people, having an active current account doesn't make the bank money. Salary goes in and most goes out the next day on bills. Surely, it's the saving and mortgages that make the profits?

I know that - current accounts are viewed as a 'loss leader' to be able to promote other products. The exception to this being those accounts where you pay a monthly fee to receive various insurances, there's a profit margin built into the fee.

In the olden days, it was about getting people through the branch door so someone could talk to them about savings or credit cards when they came in to pay in their wages cheque or pay their bills. Now it's mostly done digitally but the principal is the same.

This is a reason why banks are keen to sign up students with free railcards, large interest free overdrafts and other feeebies - they'll make no money from them as a student but they have good future erarning potential so will be looking for mortgages etc in the future. This is probablly not as true today as it used to be.

So from Nationwide's perspective - more current account holders means more potential savers and borrowers, and people to buy insurance etc. So paying £100 per year to keep those people sweet probably makes commercial sense (to the extent that Nationwide need to be 'commercial'). 

Burns94

I have been a member for over 10 years, have a current account, a credit card and an ISA. Apparently I'm not eligible! 😡

King_Of_Fools

smk77 said:

Nationwide customer with a personal FlexPlus account opened in Feb 24 which means I qualify via that.

However, also got a joint flex account with my wife. Over £100k in transactions over the period. A couple of savings accounts and a mortgage customer for 19 years. Do not qualify. The reason, 2 of the 3 months didn't have more than 10 transactions.

Note to self. Pay in £1000 Jan, Feb, Mar 2025 and make 10x £100 transactions back into the funding account.

Why not change the joint account to FlexPlus and your sole account to Flex?
That way both you and your wife are covered by the insurance and you both get £100 automatically.

WillPS

Burns94 said:

I have been a member for over 10 years, have a current account, a credit card and an ISA. Apparently I'm not eligible! 😡

Welcome to the board.

Were you eligible last year? Did you take any action to ensure you would be this year?