22 May 2013
The year to 4 April 2013 has been one of Nationwide’s most successful in its 26 year history of offering current accounts. The Society has opened over 365,000 new current accounts and a record 123,000 customers have switched their main banking relationship, up 58 per cent on last year. Nationwide’s total current account base has risen to 5.2 million and its market share of main standard and packaged accounts is 5.7%, up from 5.1% in 2012.
Nationwide has laid down its challenge to the big banks, with the introduction of two new current accounts. FlexDirect¹, a self-service, non-fee paying account, which pays a market leading 5.0% AER (4.89% gross p.a) and FlexPlus², a packaged current account offering a comprehensive range of benefits, including worldwide travel insurance, mobile phone insurance and UK and European breakdown cover, all for a monthly fee of £10. FlexAccount³ continues to be available offering customers free European travel insurance when they use it as their main current account
Nationwide’s Managed Account Transfer process has been independently rated 5 Star by data provider Defaqto. Customers switching to Nationwide continue to benefit from our Account Transfer Promise. The Society promises to contact customers’ direct debit providers within ten working days; if not, Nationwide will give them £100 (terms and conditions apply). Text updates keep customers informed of progress and provide reassurance that the process is going smoothly.
In November 2012, Nationwide launched its mobile banking app, which fulfilled a growing demand from customers to be able to manage their current account while on the move. The app been downloaded by over 500,000 members and is being used on an average daily basis by over 100,000 members to access and transact on their Nationwide accounts.
Chris Rhodes, Nationwide’s Executive Director, said: “Dissatisfaction with the big banks is leading people to vote with their feet. We opened new current accounts at a rate of one thousand per day over the last year and many of these were people switching from another provider. These results show that Nationwide really is the main challenger to the big banks.
“It’s never been easier to switch current accounts. Our dedicated account transfer team switch customers’ direct debits and standing orders for them, while keeping them informed of progress via text alerts.
“Nationwide has great products and a strong reputation for excellent service. We hope this will lead to many more people divorcing their banks and starting a new relationship with Nationwide.”
Notes to editors:
Full details on Nationwide’s current accounts can be found at: http://www.nationwide.co.uk/current_account/default.htm
¹ FlexDirect pays 5.00% AER (4.89% gross p.a) in-credit interest on balances up to £2,500 when you pay in £1,000 per month (excluding internal transfers). After 12 months, the interest reverts to 1.00% gross p.a/AER variable. Rates may be withdrawn without notice. Interest is calculated daily.
² FlexPlus Worldwide travel insurance is provided by UK Insurance Limited. Mobile phone insurance is arranged and administered by Lifestyle Services Group and underwritten by London General Insurance Company Limited. UK & European Breakdown and Recovery Assistance is underwritten by Liverpool Victoria Insurance Company Limited.
³ FlexAccount European travel insurance is provided by U K Insurance Limited. To be eligible, you must be aged 16 – 73 and:
Hold a Visa debit card (not cash card or cash card+) and either,
Switch all your Direct Debits and standing orders to us from another bank or building society to your FlexAccount, using our Account Transfer Service
pay in at least £750 per month into your FlexAccount for at least 3 consecutive months (excluding internal transfers)
To maintain cover you must continue to pay £750 into your account each month (excluding internal transfers).
You must be 16 or over to apply for FlexAccount, and 18 or over to apply for FlexDirect or FlexPlus.
Nationwide is the world's largest building society as well as the second largest mortgages in the UK. It is also a major provider of credit cards, ISAs and personal loans. Nationwide has around 15 million members.
Customers can manage their finances in a branch, on the telephone, internet and post. The Society has around 16,000 employees. Nationwide's head office is in Swindon with administration centres based in Northampton, Bournemouth and Dunfermline. The Society also has a number of call centres across the UK.