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  • FIRST POST
    • polyphonic99
    • By polyphonic99 6th Aug 18, 11:12 PM
    • 45Posts
    • 25Thanks
    polyphonic99
    Nationwide after BoE Interest Rate rise
    • #1
    • 6th Aug 18, 11:12 PM
    Nationwide after BoE Interest Rate rise 6th Aug 18 at 11:12 PM
    Nationwide will not pass on full 0.25% interest rate rise to most savers

    https://www.theguardian.com/business/2018/aug/06/nationwide-will-not-pass-on-full-interest-rate-rise-to-most-savers


    Nationwide is not passing on last week's Bank of England 0.25% rate rise in full to savers in the first sign that big financial institutions will use the base rate to increase profit margins.

    The building society, one of the biggest mortgage and savings institutions in the UK, said that while its tracker mortgage customers will see a 0.25% rise in their payments, many of its savers will see only a 0.1% increase in rates.

    Thanks Nationwide, I will be moving any remaining money in my accounts with you just as soon as your competitors raise their rates by 0.25%, which for instance Skipton has already promised to do.
Page 2
    • apt
    • By apt 7th Aug 18, 3:57 PM
    • 3,071 Posts
    • 1,737 Thanks
    apt
    The great majority of the Nationwide's members are savers and they have been shafting them for years. Got to have a good margin to keep Board and senior management pay rocketing upwards. Coventry used to be better, but unfortunately they've followed suit in recent years.
    • libra10
    • By libra10 7th Aug 18, 4:04 PM
    • 10,385 Posts
    • 207,650 Thanks
    libra10
    Nationwide's interest rate offers on fixed-rate ISAs has been appalling! A fixed rate ISA has just matured, and I have just been offered 1% interest on renewing.

    No thanks Nationwide, there are more competitive rates available. They could save money by stopping running their awful TV ads and reduce executives' pay!
    • mije1983
    • By mije1983 7th Aug 18, 4:28 PM
    • 3,543 Posts
    • 20,065 Thanks
    mije1983
    They could save money by stopping running their awful TV ads and reduce executives' pay!
    Originally posted by libra10
    Or cutting their 5% current account, or halving their RS rate which is double the rate of a lot of others

    If NW can offer 5% on those products, why can't other lenders.....

    • libra10
    • By libra10 7th Aug 18, 5:13 PM
    • 10,385 Posts
    • 207,650 Thanks
    libra10
    Their 5% current account interest rate only lasts a year, and if I'm correct only payable on first 2500 in the account. After this the rate reduces to 1% on first 2500.

    We have been with Nationwide for many years, and their emphasis on loyalty to members doesn't ring true. Eg the 5% current account interest rate is there to attract new customers, not necessarily reward current members, although we did take advantage of this several years ago.
    Last edited by libra10; 07-08-2018 at 5:14 PM. Reason: addtn
    • eskbanker
    • By eskbanker 7th Aug 18, 5:48 PM
    • 7,825 Posts
    • 8,643 Thanks
    eskbanker
    Nationwide's interest rate offers on fixed-rate ISAs has been appalling! A fixed rate ISA has just matured, and I have just been offered 1% interest on renewing.

    No thanks Nationwide, there are more competitive rates available. They could save money by stopping running their awful TV ads and reduce executives' pay!
    Originally posted by libra10
    Their 5% current account interest rate only lasts a year, and if I'm correct only payable on first 2500 in the account. After this the rate reduces to 1% on first 2500.

    We have been with Nationwide for many years, and their emphasis on loyalty to members doesn't ring true. Eg the 5% current account interest rate is there to attract new customers, not necessarily reward current members, although we did take advantage of this several years ago.
    Originally posted by libra10
    So you disapprove of
    • the amount of money they spend on TV ads
    • the scale of their executive pay
    • the uncompetitive interest rate on their ISAs
    • the lifespan of the FlexDirect top rate
    • the cap on interest-earning balances with FlexDirect
    • the lack of loyalty to existing members such as you
    • the preferential treatment of new customers
    but have stuck with them for many years - this does rather beg the question: why not vote with your feet?!
    • Thrugelmir
    • By Thrugelmir 7th Aug 18, 5:55 PM
    • 59,480 Posts
    • 52,799 Thanks
    Thrugelmir
    Nationwide is not passing on last week's Bank of England 0.25% rate rise in full to savers in the first sign that big financial institutions will use the base rate to increase profit margins.
    Originally posted by polyphonic99
    How does the 0.25% rise increase profit margins. The vast majority of lending , i.e. mortgages, personal loans is for fixed rates over several years. The change in BOE base is only going to influence market rates over an extended period of time.

    Nationwide has reported 2 years of declining profits. While being required to hold more capital to meet regulatory solvency requirements.

    There's a far more complex picture than headlines suggest.
    Financial disasters happen when the last person who can remember what went wrong last time has left the building.
    • libra10
    • By libra10 7th Aug 18, 5:59 PM
    • 10,385 Posts
    • 207,650 Thanks
    libra10
    Nationwide do have a good side - their customer service is excellent, and internet banking second to none!

    We started using Nationwide when they had a branch in our village, back in the day. However, when they are offering such derisory interest rates when old accounts mature, it would be stupid not to look around to gain more interest.

    Surely that is the ethos of MSE?
    • EachPenny
    • By EachPenny 7th Aug 18, 6:15 PM
    • 6,092 Posts
    • 15,993 Thanks
    EachPenny
    Or cutting their 5% current account, or halving their RS rate which is double the rate of a lot of others
    Originally posted by mije1983
    It wasn't so long ago that they halved the monthly pay in amount on the RS account.


    I suspect the 5% Regular Saver rate has been retained at that level to avoid too many members crying 'foul' that the best rate (5%) was reserved for new FlexDirect customers. Nationwide can at least say that all (qualifying) members can access an account paying 5% interest.
    "In the future, everyone will be rich for 15 minutes"
    • EachPenny
    • By EachPenny 7th Aug 18, 6:20 PM
    • 6,092 Posts
    • 15,993 Thanks
    EachPenny
    Nationwide do have a good side - their customer service is excellent, and internet banking second to none!
    Originally posted by libra10
    Unfortunately their customer service is also very variable, as illustrated by the wide variety of responses people used to get when they tried to get a second (or more) bite at the 5% FlexDirect offer for new customers. You got a different answer depending on who you spoke to, and if you didn't like the first answer then you simply tried again until the 'right' answer was obtained.

    To me that doesn't equate to excellent customer service - all customers should get the same answer to the same question.

    They are a lot better than some banks though.
    "In the future, everyone will be rich for 15 minutes"
    • underwhelmed_saver
    • By underwhelmed_saver 7th Aug 18, 6:30 PM
    • 1 Posts
    • 2 Thanks
    underwhelmed_saver
    My favourite part was when they sent me a letter asking to vote in the AGM earlier this year, with the director's wanting an extra boost to their pay packet.


    At least someone is getting a pay rise I suppose.
    • 18cc
    • By 18cc 7th Aug 18, 6:32 PM
    • 667 Posts
    • 445 Thanks
    18cc
    Not so long ago Nationwide used to be market leading but not anymore they have been steadily deteriorating over the past couple of years

    yes the Regular Saver is good at 5% but it used to be 500 a month and they cut it to 250 a month

    The FlexDirect account pays 5% for a year as it does now but you used to then be able to close and reopen another one and get another 5% for another year but they have stopped that

    the ordinary Flex Account used to come with European travel insurance but now it doesn't
    The flex plus fee has been increased

    their credit card used to give half percent cash back now it is only a quarter of a percent

    their ISA rates and general savings rates even for loyalty Savers and flexclusive customers are appalling you can get better at Tesco Bank
    • bowlhead99
    • By bowlhead99 7th Aug 18, 7:15 PM
    • 8,158 Posts
    • 14,905 Thanks
    bowlhead99
    Nationwide do have a good side - their customer service is excellent, and internet banking second to none!

    We started using Nationwide when they had a branch in our village, back in the day. However, when they are offering such derisory interest rates when old accounts mature, it would be stupid not to look around to gain more interest.

    Surely that is the ethos of MSE?
    Originally posted by libra10
    Yes, though a cynic might say:

    a) the 'ethos of MSE' is to continually shop around and switch to the very best deal you can find in that moment, because you shouldn't let a notion of 'loyalty' to a product provider cause you to lose out on grabbing the very best profit, highest income, lowest cost than you can possibly find.

    b) the short-termism and grabbing of the very best deal in the moment, promulgated by the supporters of (a) above - turning your back on your previous product provider to grab whatever you can - encourages financial services businesses to target their marketing budgets toward dangling some carrots to attract new customers from elsewhere. Rather than than aiming to provide a 'good enough' deal over the course of a long term customer relationship. They will be last on the wishlist of 'savvy MSEers' if they just offer averagely decent rates to everyone, because you can't top a short term league table if your only averagely decent. So they have to compromise. Based on what they think the public want/ need / will put up with.

    Step (c) is for the proponents of the culture identified in (a) to further moan and whine that banks and building societies are never going to be loyal to you - as demonstrated by the focus on new customers rather than existing customers or long term relationships, in (b), which was caused by (a) - and redouble their efforts to keep hopping from bank to bank for the extra pound of interest. Perhaps they don't realise that they are the person in a car sitting in a traffic jam who complains that there are so many bloody cars on the roads these days.

    If you're a fervent MSE adherent: if you hop and make an extra pound, favouring bank A over bank B in that moment, you are being savvy, pat yourself on the back. Whereas if a bank focuses their love - for just one split second in the grand scheme of things - on a mortgage borrower or a current account holder or a personal loanee, or a person building up savings from a low level, or an [insert whatever customer type you might not be at that time], so that such and such a customer gets a better relative deal from that financial institution that month, than you do, it's abhorrent and they are all out to fleece you. Dump them like a shot.

    The issue of "a causes b causes c and we're back at a again" won't really go away.

    It would be nice if we all played nice and got a great standard rate so nobody had much reason to switch. However, if you know that you have a reasonable deal but could do better, the nature of capitalism is to see what you can do for yourself to get that better deal. If that means discarding your loyalty and jumping into bed with a challenger provider, some will do it. And challenger providers have to be given a chance to get a foot in the door with nice offers, in the spirit of competition, so there will always be businesses with intro rates and promo deals. Which means that incumbents have to try to compete with those to avoid losing custom, and they can't realistically be expected to give away all their profits if they are to succeed. So, we are pretty much stuck with an industry that's short-termist and profit focused.
    • Thrugelmir
    • By Thrugelmir 7th Aug 18, 7:19 PM
    • 59,480 Posts
    • 52,799 Thanks
    Thrugelmir
    So, we are pretty much stuck with an industry that's short-termist and profit focused.
    Originally posted by bowlhead99
    Something the FCA is reviewing and undoubtably will address in the months to come.
    Financial disasters happen when the last person who can remember what went wrong last time has left the building.
    • vm2pensioner
    • By vm2pensioner 7th Aug 18, 7:38 PM
    • 130 Posts
    • 66 Thanks
    vm2pensioner
    Nationwide's slogan was once "On your side". Not anymore, evidently.
    • veryintrigued
    • By veryintrigued 7th Aug 18, 7:40 PM
    • 2,433 Posts
    • 1,891 Thanks
    veryintrigued
    Some great adverts though

    https://forums.moneysavingexpert.com/showthread.php?t=5712969
    • vm2pensioner
    • By vm2pensioner 7th Aug 18, 7:43 PM
    • 130 Posts
    • 66 Thanks
    vm2pensioner
    Originally posted by veryintrigued
    But dreadful poetry!
    • Gordon the Moron
    • By Gordon the Moron 7th Aug 18, 7:59 PM
    • 1,431 Posts
    • 727 Thanks
    Gordon the Moron
    Can't see if they are increasing the rate on the Single Access Loyalty ISA by any amount... anyone know?
    Originally posted by intalex
    Their site says if your account isn't listed its rate won't be changing, as the account isn't listed I'm assuming it stays at 1.4%.

    The 2.5% rate on H2BISA is welcome though (I've got a lifetime ISA and I'm now using one of these simply as a regular saver with no intention of claiming the bonus on it)
    If you don't like what I say slap me around with a large trout and PM me to tell me why.

    If you do like it please hit the thanks button.
    • jimjames
    • By jimjames 7th Aug 18, 8:01 PM
    • 12,704 Posts
    • 11,395 Thanks
    jimjames
    Thanks Nationwide, I will be moving any remaining money in my accounts with you just as soon as your competitors raise their rates by 0.25%, which for instance Skipton has already promised to do.
    Originally posted by polyphonic99
    Thanks Nationwide, I'll keep using their 5% and 3% accounts, far better than other options and unrelated to base rate

    Not so long ago Nationwide used to be market leading but not anymore they have been steadily deteriorating over the past couple of years
    Originally posted by 18cc
    Nationwide are still market leading for many products including mortgages and savings. I'm happy and will carry on using them as will I suspect many others
    Remember the saying: if it looks too good to be true it almost certainly is.
    • EachPenny
    • By EachPenny 7th Aug 18, 8:46 PM
    • 6,092 Posts
    • 15,993 Thanks
    EachPenny
    Nationwide are still market leading for many products including mortgages and savings. I'm happy and will carry on using them as will I suspect many others
    Originally posted by jimjames
    Market leading for Cash ISAs and instant access savings accounts?
    "In the future, everyone will be rich for 15 minutes"
    • intalex
    • By intalex 7th Aug 18, 9:52 PM
    • 339 Posts
    • 58 Thanks
    intalex
    Their site says if your account isn't listed its rate won't be changing, as the account isn't listed I'm assuming it stays at 1.4%.
    Originally posted by Gordon the Moron
    Ahh well, wishful thinking
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