Nationwide Building Society has launched a new high-interest savings account for its existing customers, offering a market-leading fixed rate of 5.30% AER/gross per year. The new version of its Member Exclusive Bond is a 30-month (2.5-year) bond, available to Nationwide members and Virgin Money customers who are Nationwide members.
The building society completed its takeover of Virgin Money in April this year. According to Nationwide, someone saving the full £10,000 would receive £1,381.92 in interest after 30 months, assuming the full amount was invested from day one.
Loyalty rewards and member value
Nationwide highlighted the broader benefits of membership, noting that last year it returned £1.8 billion of value to members, including £1.4 billion delivered through better-than-average rates and incentives. The mutual also pointed to its own research, which it said emphasises the importance people place on being rewarded for their loyalty.
The poll was carried out on Nationwide's behalf by Censuswide among a sample of 2,000 UK respondents (aged 18+) who have a bank account or are part of a building society. Of those surveyed, 85% of banking customers said existing customers should be rewarded at least as much as new ones.
Perception of preferential treatment
However, 59% of bank and building society customers believe better savings rates are only being offered to new customers. The perception is particularly strong among younger customers, with almost three quarters (72%) of 25 to 34-year-olds saying new customers get preferential treatment, compared with 52% of over-55s.
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.”
Comparable market alternatives
Rachel Springall, finance expert at Moneyfactscompare.co.uk, said: “It’s fantastic to see Nationwide BS 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,” she noted.
Other options on the market offer comparable rates without requiring existing customer status. RCI Bank UK's Two-Year Fixed-Term Savings Account has an AER of 5.30% paid on £1,000 (the minimum opening amount), with a maximum investment of £1 million. Atom Bank's two-year fixed saver has a 5.10% AER, paid at £50 (the minimum opening amount), though the maximum investment is much smaller, at £100,000.
Among the top options for a three-year term is Secure Trust Bank's Three Year Fixed Rate Bond, which has an AER of 5.27% paid at £1,000 (the minimum deposit) with a maximum investment of £1 million. More details on individual products and the latest deals are available on the Moneyfactscompare.co.uk website.
