Fears millions of Nationwide customers will miss out on £100 windfall payment
21 May 2023, 10:04
Millions of Nationwide customers are set to miss out on £100 windfall payouts.
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The building society delighted many of its members when it revealed on Friday that it will pay the sum after its profits soared to £2.2bn, a jump of some 40%.
But it is thought fewer than a quarter of the 16 million members will get a slice of the £340m pie.
It will be paid out under the "Fairer Share" scheme which it hopes to make annually, provided the bank is financially capable.
Customers need to have had a Nationwide current account since March 31 and had at least £100 in savings accounts or owe at least £100 on a mortgage.
It is thought about 3.4m of the 16m members qualify.
Laura Suter, of investment group AJ Bell, said while the mutual needed a criteria to decide who to pay, some long-term savers could be frustrated they are not eligible.
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"Part of the reason Nationwide has such high profits is it has not been passing on interest rate rises to savers in full. Some savers may have preferred a rate rise," she added.
She told MailOnline: "A £100 payout in the future is not guaranteed. By comparison, a number of banks offer switching incentives of up to £200 for new current account customers, for which you would not have to wait."
Nationwide says it is looking to rewards its members with the "deepest relationship" and hopes as many members as possible will be eligible in the future.
The payments will be made to those who qualify in June.
Debbie Crosbie, the chief executive of Nationwide, said: "Nationwide's purpose is to offer banking, but fairer, more rewarding, and for the good of society.
"That's why we have introduced the Nationwide Fairer Share, which will see us return even more value back to members.
"We are able to do this because of our financial strength and the fact we're a building society, not a bank, so our profit is used for our members' benefit. It's part of our enduring commitment to rewarding our members."
