Nationwide has launched a new 30-month Member Exclusive Bond paying 5.30% AER/gross a year (fixed), available exclusively to Nationwide members and Virgin Money customers who are members of Nationwide. The building society announced the new account on Tuesday, November 3, saying it was continuing its commitment to rewarding existing members with access to its best savings rates.
Someone saving the full £10,000 that can be deposited would receive £1,381.92 in interest after the full 30 months.
Benefits of Nationwide membership
The society said the bond built on the wider benefits of Nationwide membership. Last year, Nationwide returned £1.8bn of value to members, including £1.4bn delivered through better-than-average rates and incentives, highlighting the positive difference a large mutual can make.
New Nationwide research highlights the importance people place on being rewarded for their loyalty, with 85 per cent of banking customers surveyed saying existing customers should be rewarded at least as much as new ones. However, well over half (59%) of bank and building society customers believe better savings rates are only being offered to new customers.
That perception is strongest among younger customers, with nearly three quarters (72%) of 25 to 34-year-olds saying new customers receive preferential treatment, compared with 52 per cent of over-55s. Nearly three quarters (73%) of savers say they have previously felt overlooked despite their loyalty.
Loyalty rewarded
Nationwide said its research suggested a strong appetite for the continued focus on existing members. Nearly two thirds (63%) would find a savings account exclusively available to existing customers or members appealing, rising to 71 per cent among those who currently hold savings.
Just over six in ten (61%) savers say exclusive products and benefits would make them more likely to save with a particular bank or building society. More than a third (35%) of savers also say better savings rates would make them feel most valued by their bank or building society.
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.”
Nationwide Fairer Share payment
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.
“The perks of being a Nationwide customer don’t end with its savings account. At a time when big banks continue to close branches, mutuals give customers more face-to-face support and Nationwide has pledged to keep its branches open until at least early 2030. On top of this, customers have a chance to receive a Fairer Share payment of £100, and Nationwide is currently offering a £175 current account switching incentive. Taking time out to compare any added benefits from the array of products offered by a provider remains essential.”
