17 February 2014
Research1 conducted by Nationwide Building Society suggests that consumers feel their loyalty to their bank is not rewarded. More than eight in ten (82%) people said that they disagreed with the statement that banks and building societies were good at rewarding loyalty, with more than three quarters (77%) saying they thought customers should get more benefits the longer they remain loyal to an organisation.
Nationwide rewards loyalty by giving Loyalty Saver customers a higher rate of interest depending on the length of their membership - the longer you've been a member, the better rate you get. Loyalty Saver (Issue 4) pays up to 1.70% AER**/gross p.a (variable) and the top rate is payable for customers who have continuous membership of 15 years or more, one of the highest rates for an easy access account on the market.
More than 11 million Nationwide members (equivalent to one in five UK adults) are eligible2 for the account as they have been a member for at least one year. More than 677,000 members have already taken out Loyalty Saver with nearly eight in ten (78%) already receiving the top rate of interest.
Members with Loyalty Saver accounts automatically receive a higher tier of interest as the length of their membership grows – a real demonstration of being 'On Your Side'.
Darren Bailey, Head of Savings Pricing at Nationwide Building Society, said: "Consumers often feel their loyalty is taken for granted and that they get little reward for years of valuable custom.
"As a mutual our customers are at the heart of what we do and rewarding customer loyalty is an important part of our ethos. Customer research helped us design Loyalty Saver as our members rightly believed that the length of their membership should be rewarded.
"Loyalty Saver has been our most popular ever loyalty account and the significant majority of customers who hold the account are benefitting from earning one of the highest easy access rates on the market.
"For Nationwide members loyalty really pays and this account is another example of the benefits of being a customer of a mutual Building Society over a Bank."
Notes to editors:
1 All figures, unless otherwise stated, are from YouGov Plc. Total sample size was 2,064 adults. Fieldwork was undertaken between 3rd - 4th February 2014. The survey was carried out online. The figures have been weighted and are representative of all UK adults (aged 18+).
* A member means a customer with a Nationwide current account, savings account or mortgage. This includes those held with Cheshire, Derbyshire and Dunfermline Building Societies. The following product holdings do not carry membership rights: deposit accounts, personal loans, credit cards, insurance products, products offered by subsidiaries of the Society such as Nationwide International or The Mortgage Works (UK) plc.
** AER stands for Annual Equivalent Rate which illustrates what the interest rate would be if interest was paid and compounded each year. The gross rate of interest is the interest rate payable before any income tax is deducted (if a customer pays tax) and the net rate of interest is the interest payable after any income tax is deducted (if a customer pays tax).
2 To qualify for Loyalty Saver applicants must have had a continuous Nationwide membership for a minimum of one year and must be aged 18 or over.
One account per customer in single or joint name. If a joint account is opened the longest length of membership will be used to determine the interest rate tier.
Limited offer and may be withdrawn from sale without notice
RATES FOR LOYALTY SAVER ISSUE 4
|Length of Membership
||AER / Gross p.a.
|15 years +
|10 – 14 years
|5 – 9 years
|1 - 4 years
Rates are variable
||Loyalty Saver Issue 4
||In branch and online at nationwide.co.uk
|| To qualify for Loyalty Saver applicants must be UK residents and have been a continuous member* of Nationwide for a minimum of one year
|Maximum number of account holders
||Maximum of two joint account holders. Only one account holder must meet the opening eligibility criteria; the customer with the longest membership* with Nationwide will determine the interest rate. To apply online, both account holders must be existing Nationwide customers.
||Unlimited instant access withdrawals allowed
|Min. opening balance
|Min. operating balance
||Account must be opened by an adult over 18
||£50,000 (for sole and joint accounts)
||Interest is added annually on 31 December
About Nationwide Building Society
Nationwide is the world's largest building society as well as one of the largest
providers and a top-three provider of
mortgages in the UK. It is also a major provider of
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.