Nationwide to pay £100 bonus to customers again and launches a 5.5% savings bond

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published 23 May 2024

Nationwide is making a £100 payment to eligible customers for a second year in a row.

The “Fairer Share” cash bonus will see £385 million shared among current account customers with a savings account or a mortgage.

It means 3.85 million customers will receive the bonus. Last year, Nationwide paid a total of £344 million to 3.44 million customers via the loyalty bonus.

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The announcement comes after the building society announced profits of £2 billion in the last financial year.

It also follows a vote yesterday (22 May) by Virgin Money shareholders for the Nationwide takeover. The deal won approval of 89% of voting shareholders.

As well as the £100 cash boost, Nationwide is launching a 5.5% savings bond, available to all 16 million customers, plus a £200 switching deal. The 5.5% deal could be a good idea if you’re thinking about fixing your savings ahead of any Bank of England interest rate cut.

“Our strong financial performance means we are able to offer more ways for our members to benefit from our success,” said Debbie Crosbie, Nationwide’s chief executive.

We look at how the £100 payment works - who will get it, and when? - plus details of the new savings bond and switching deal.

Who will get the £100 bonus from Nationwide?

Not everyone who has an account with Nationwide will receive the £100 payment.

To qualify for the cash bonus, customers must have had a current account with Nationwide on 31 March, and they must still have a current account open in June (next month).

There’s an extra layer of rules depending on your current account. FlexPlus customers must be paying their monthly fee.

FlexAccount, FlexBasic or FlexDirect account-holders must have done one of the following things in two of the three months of January, February and March:

- Received at least £500 into the account (excluding transfers in from other Nationwide accounts) and made at least two payments out of the account.

- Made at least 10 payments from the account per month (in two of the three months).

Meanwhile, FlexOne, FlexStudent and FlexGraduate customers must have received at least one payment in or made one payment out of their account during March.

You will also need to have either a savings account or mortgage with Nationwide. For the savings account, you must have 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.

With the mortgage, you must have at least £100 left on your Nationwide residential mortgage as of 31 March.

If you've withdrawn your savings or paid off your mortgage since the end of March, you'll still be eligible provided your current account remains open.

Myron Jobson, senior personal finance analyst at Interactive Investor, calls the payment “a welcome cash boost to eligible customers with no strings attached, which is particularly appealing in today's economic climate”.

He adds: “The initiative is an attractive incentive that could win more business for the nation’s largest building society.”

If you’re unsure about whether you’ll get the money, log in to your online banking and you should see a notification saying if you’re eligible. You can also use Nationwide’s eligibility checker.

Is the criteria the same as last year?

The criteria is essentially the same regarding having a current account and either savings or a mortgage.

However, Nationwide says it has included two small updates to make the Fairer Share Payment "even more inclusive". It says this is in recognition that some people will have different personal circumstances and ways of managing their money. These changes include:

- Becoming eligible if a customer has made at least 10 payments out of their current account (FlexAccount, FlexDirect and FlexBasic) in two of the three months (Jan – March 2024).

- For those with more than one of the aforementioned current accounts open on 31 March 2024, payments made in and out of all of these accounts in total will count towards meeting the requirements set out in the criteria.

When will it be paid?

Eligible customers will be contacted about the £100 bonus by 31 May.

The money will then be paid directly into your Nationwide current account between Thursday 13 June and Friday 28 June. It will appear on your statement as “Nationwide Fairer Share Payment”.

You don’t need to apply for the payment, it will just be paid automatically.

Watch out for scams inviting you to claim or apply for the payment or asking for your personal details.

Will Nationwide pay this every year?

The cash bonus is set to become an annual payment.

Nationwide says it “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.”

Nationwide’s 5.5% Member Exclusive Bond

Nationwide has also unveiled a Member Exclusive Bond offering a rate of 5.5% AER/gross (fixed) for 18 months and available to all customers.

Withdrawals are not allowed until the 18-month term ends. Interest is paid annually on the anniversary of account opening and maturity.

The 5.5% rate puts the bond at the top of the best-buy tables. The next best 18-month accounts pay 4.85% (Al Rayan Bank and Allica Bank), followed by Cynergy Bank and Union Bank of India (UK) at 4.8%, according to Moneyfactscompare.co.uk.

The maximum investment in the Nationwide bond is £10,000. It can be opened in branch, via the banking app or on internet banking.

Nationwide says the rate is 1.25% higher than its existing 1-year Fixed Rate Bond. This means that if a saver deposited the maximum investment of £10,000 in the 18-month bond, they would earn an extra £125 interest over a year and £193 over 18 months compared to the one-year bond.

£200 switching offer for existing customers

Finally, Nationwide has launched a £200 switching deal - but it’s only for existing members. If you’re a Nationwide customer (and were a customer on 31 March), you can get a £200 “Member Exclusive Current Account Online Switch Offer” by moving your current account to the building society.

Customers must complete a full switch using the Current Account Switch Service, and transfer at least two active Direct Debits to the new account.

Nationwide customers can also switch a current account they hold with another provider to an existing account they hold with Nationwide.

Should I move to Nationwide?

If you’re not already a Nationwide customer, you may be thinking about moving to take advantage of perks like the £100 loyalty bonus.

The building society tends to offer higher savings rates on average than high-street banks like NatWest, Barclays, Santander, HSBC and Lloyds, according to research by Savings Champion.

By becoming a customer, you’ll be able to access some of Nationwide’s best savings accounts, for example its new 5.5% bond, and its 6.5% regular savings account, which is only beaten by The Co-op Bank, First Direct and Skipton, which offer 7%.

If you’re thinking about how it rates for customer service, Nationwide says it was first for customer satisfaction among its peer group for the 12th year running, according to the Ipsos 2024 Financial Research Survey.

However, it depends what you’re looking for with a bank. Do you want the highest cash ISA rate, or the cheapest overdraft, for example?

Jobson comments: “With interest rates, fees, and perks varying widely between providers, taking the time to compare options can ensure you're not only getting the best deal but also the features that suit your lifestyle.

“Some accounts offer rewards, cashback, or even tools to help you manage your money better. By doing your homework, you could maximise your benefits and avoid unnecessary charges.”

Ruth is an award-winning financial journalist with more than 15 years' experience of working on national newspapers, websites and specialist magazines.

She is passionate about helping people feel more confident about their finances. She was previously editor of Times Money Mentor, and prior to that was deputy Money editor at The Sunday Times.

A multi-award winning journalist, Ruth started her career on a pensions magazine at the FT Group, and has also worked at Money Observer and Money Advice Service.

Outside of work, she is a mum to two young children, while also serving as a magistrate and an NHS volunteer.