Nationwide today launches three new benefits for members as it announces one of its strongest financial performances, including a record £2.2 billion of member value. The new Member Exclusive Bond, £100 Fairer Share Payment and £200 member-only switching incentive offer more ways for members to share in Nationwide’s success.
Nationwide is launching a highly competitive Member Exclusive Bond1 offering a rate of 5.5 per cent AER/gross (fixed) for 18 months and available to all 16 million existing members. The rate is 1.25% higher than Nationwide’s existing 1-year Fixed Rate Bond. For the maximum investment of £10,000, that means £125 extra interest over a year and £193 over 18 months2. The Bond can be opened in branch, via the banking app or Internet Bank. Eligibility criteria apply.
Nationwide is also announcing its second Fairer Share Payment3. It will distribute £385 million to members who choose Nationwide for their everyday banking and have a qualifying savings or mortgage product. The Fairer Share Payment is £100 and will be paid directly into current accounts of eligible members next month.
For existing members (as at 31 March) who currently do not use Nationwide for their everyday banking, Nationwide is offering a £200 Member Exclusive Current Account Online Switch Offer4 putting them in prime position to receive a Fairer Share payment5 in future years.
Debbie Crosbie, Nationwide’s Chief Executive, said: “Our strong financial performance means we are able to offer more ways for our members to benefit from our success. This is only possible because we are owned by members and all our profits are reinvested for their benefit.”
Last year, Britain’s biggest building society reported profits of £2 billion, enabling it to deliver over £1.8 billion to members in better rates and incentives, compared to the market average. It also distributed £344 million through its first ever Fairer Share Payment to eligible members.
Nationwide continued to support savers, borrowers and current account holders over the last year.
Service: Nationwide was 1st for customer satisfaction amongst its peer group for the 12th year running6, and extended its lead over the year ahead of their closest competitors. Its Branch Promise was extended until at least the start of 2028 and it now has the UK’s largest single-brand branch network.
Mortgages: Mortgage balances increased to £204.5bn (2023: £201.7bn) with a market share of balances of 12.3% (2023: 12.2%). Nationwide helped 64,000 first-time buyers and over 2 million people logged into their Mortgage Manager Digital tool to manage their mortgage and we recently launched a similar tool for landlords.
Savings: Member deposit balances increased by £6.3bn (2023: £9.1bn) with a market share of 9.5% (2023: 9.6%). Average deposit rates were 38% per cent higher than the market average.
Current accounts: In the most recent Current Account Switching Service data, Nationwide attracted a record number of switchers, one in six of the market.
Good for Society: As a mutual, Nationwide made a meaningful impact on its customers, colleagues, communities, and society. Last year, the Society committed £15.5m to charitable activities.
– Ends –
Notes to Editors
Member Exclusive Bond
1 Source: Moneyfacts Compare shows the current top 18-month bond pays 4.85% – Best 18 Month Fixed Rate Bonds | Rates Up To 4.85% (moneyfactscompare.co.uk)
The Member Exclusive Bond is available to UK residents aged 16+ who held a Nationwide current account, savings account or mortgage account on 22.05.24, and at the time of applying. No withdrawals until the 18-month term ends. Interest is paid annually on the anniversary of account opening and maturity. T&Cs at nationwide.co.uk.
Customers can invest a maximum of £10,000 in the bond.
Bond is available for a limited period and may be withdrawn at any time.
AER stands for Annual Equivalent Rate and illustrates what the interest rate would be if interest was paid and compounded once each year. Gross p.a. is the interest rate without tax deducted.
Rates table
2 The table below shows the additional interest members could earn by savings in the Member Exclusive Bond (MEB) at 5.5%. Calculations of the estimated interest assume £10,000 is deposited on day one of account opening. This interest is paid gross and may be subject to tax depending on individual circumstances.
* Nationwide 1-Year Bond (4.25%). For 18-month interest, figure assumes money is reinvested after 1 year at 4.25% for an additional six months.
**Highest 12-months (4.65% Barclays) and 18-month (4.45% Barclays Premier customers) rate used across High Street Banks (Halifax, Lloyds, Santander, HSBC, NatWest, Barclays and TSB), correct as at 22nd May. Source: barclays.co.uk.
***Highest 12-months (5.21% Habib Bank AG Zurich) and 18 months (4.85% Allica Bank) rate used across the UK fixed rate bond market, correct as at 22nd May. Source: savingschampion.co.uk & Allica Bank.
Fairer Share Payment
3Fairer Share payment: Full eligibility criteria can be found here. In summary:
- Current account: To be a qualifying current account, your account must have been open on 31 March 2024. See here for further criteria. Qualifying members must still have a current account in June.
- Savings: You will have had qualifying savings if you had at least £100 in total in one or more personal savings accounts or cash ISAs with Nationwide at the end of any day in March 2024.
- Mortgage: To be a qualifying mortgage, you must owe us at least £100 on your Nationwide residential mortgage on 31 March 2024
Member Exclusive Current Account Online Switch Offer
4Member Exclusive Current Account Online Switch Offer criteria – To qualify for the incentive, you must already be a member on 31 March 2024. Customers must complete a full switch using the Current Account Switch Service. A minimum of two active Direct Debits must be transferred to the new account.
A new account can be opened on Nationwide’s website or via the Internet Bank or Mobile Banking App and the switch can be requested as part of the application. Existing customers can also switch a current account they hold with another provider to an existing account they hold with the Society via the Internet Bank. The switch must be completed within 28 days of it being requested.
Additional footnotes
5 Nationwide intends to make the payment annually, providing it would not be detrimental to the Society’s financial strength and subject to Board approval, and hopes as many members as possible are eligible for the reward in the future.
6 © Ipsos 2024, Financial Research Survey (FRS), for the 12 months ending 31 March 2013 to 12 months ending 31 March 2024. Results based on a sample of around 47,000 adults (aged 16+). The survey contacts around 51,000 adults (aged 16+) a year in total across Great Britain. Interviews were face to face, over the phone and online, taking into account (and weighted to) the overall profile of the adult population. The results reflect the percentage of extremely satisfied and very satisfied customers minus the percentage of customers who were extremely or very or fairly dissatisfied across those customers with a main current account, mortgage or savings. Those in our peer group are providers with more than 3.2% of the main current account market as at April 2023 – Barclays, Halifax, HSBC, Lloyds Bank, NatWest, Santander and TSB. Prior to April 2017, those in our peer group were providers with more than 6% of the main current account market – Barclays, Halifax, HSBC, Lloyds Bank (Lloyds TSB prior to April 2015), NatWest and Santander.
