Nationwide has introduced a new version of its Member Exclusive Bond, a 30-month fixed-rate savings account paying 5.30% AER/gross a year, available exclusively to Nationwide members and Virgin Money customers who hold Nationwide membership. The building society confirmed the launch on Tuesday, November 3, stating it was "continuing its commitment to rewarding existing members with access to its best savings rates." Savers depositing the maximum £10,000 would earn £1,381.92 in interest over the full 30-month term.
Member benefits and research findings
Nationwide said the bond builds on "the wider benefits of Nationwide membership." Last year, the society delivered £1.8bn of value to members, including £1.4bn through "better-than-average rates and incentives, highlighting the positive difference a large mutual can make."
Fresh research from Nationwide found that 85 per cent of banking customers surveyed believe existing customers should receive rewards at least equal to new ones. However, 59 per cent of bank and building society customers feel superior savings rates are only offered to new customers. This sentiment is strongest among younger customers, with 72 per cent of those aged 25 to 34 saying new customers receive preferential treatment, compared with 52 per cent of those aged over 55. Nearly three quarters (73%) of savers said they have previously felt overlooked despite their loyalty.
The research indicated "a strong appetite for the continued focus on existing members," with 63 per cent finding a savings account exclusive to existing customers appealing, rising to 71 per cent among those who currently hold savings. Just over six in ten (61%) savers said exclusive products and benefits would make them more likely to save with a particular bank or building society, and 35 per cent said better savings rates would make them feel most valued.
Rewarding loyalty and the Fairer Share payment
Anna Bowes, personal finance expert at The Private Office, said: "It's good to see a provider rewarding loyalty rather than paying the best rates to new customers only. We know that not enough savers regularly switch providers, so having the chance to earn a market-leading rate as a loyal customer is refreshing, especially from a high street brand."
Richard Stocker, Nationwide's head of savings, said: "Our research shows people want loyalty to be recognised, and too many feel the best deals today are reserved for new customers. We don't think being a loyal customer should mean watching the best deals go to someone else. That's what being a mutual is all about – we're owned by our members rather than shareholders, so we can focus on delivering value back to them. Whether that's through exclusive products like our new Member Exclusive Bond or the £100 Fairer Share payments we've paid for four years running, we want our members to see a real benefit from being part of Nationwide."
Rachel Springall, finance expert at Moneyfactscompare.co.uk, added: "It's fantastic to see Nationwide rewarding the loyalty of its customers alongside Virgin Money customers, with the launch of this attractive 30-month fixed rate bond. Paying 5.30% AER/gross, it is an inflation-busting guaranteed return, which could net customers over £1,380 on a £10,000 lump sum investment. Compared to other longer-term fixed bonds beyond 30 months, the deal pays more than both the top three-year fixed bonds, as well as some five-year bonds, so it will likely be an attractive choice for existing customers."
Springall also noted that Nationwide has pledged to keep its branches open until at least early 2030, and customers have a chance to receive a Fairer Share payment of £100, with a £175 current account switching incentive currently on offer. She added that comparing any added benefits from the array of products offered by a provider remains essential.
