Nationwide helps savers and current account switchers

28 May 2014

  • New current account opened with the Society every 50 seconds*
  • Deposit balances up £4.9bn in the last year

Nationwide Building Society today announces its 2013/14 full year results which demonstrate the Society’s support for savers and current account customers. The Society has remained true to its mutual heritage by offering competitive products with long-term member value, underpinned by exceptional customer service.

Helping people make more of their money
The Society has opened over 430,000 new current accounts, an 18 per cent increase on the previous year (2013: 365,000). Nationwide’s total current account base has risen to 5.5 million accounts and its market share of main standard and packaged accounts is 6.2%, up from 5.7% in 2013.

Nationwide continues to be one of the big winners in the switching market with 107,000 customers switching their main banking relationship to the Society in the last year. Payments Council data indicates that its monthly share of switchers was 10.8% in March 2014. The Society has been one of the main beneficiaries of the Current Account Switch Service which launched in September 2013.

Launched just over a year ago, Nationwide’s FlexDirect and FlexPlus current accounts have helped the Society open new accounts at a rate of one every 50 seconds*. Rated number one packaged account by Which?, FlexPlus has been particularly popular with customers, with accounts being opened at a rate of one every two minutes* and 100,000 existing customers upgrading to the account.

Helping members save
In the last year members’ deposit balances have grown by £4.9bn to £130.5bn, which has contributed to the Society having a 12.1% market share. Reflecting the strength of Nationwide’s ISA proposition the Society has seen retail cash ISA balances grow to around £40bn, equivalent to a 17.9% market share.

The Loyalty Saver account, which rewards members based on the length of time they have been a member of the Society, has delivered member value of £130 million during the last year. Each Loyalty Saver customer has benefitted from around £239 additional interest compared to what they would be getting elsewhere**. Around 280,000 accounts have been opened this year, taking the total number of accounts to 675,000. More than 813,000 members now hold a Loyalty Saver account, with more than three quarters (79%) receiving the top rate of 1.70% as members of the Society for 15 years or more.

Nationwide remains committed to a transparent and simple savings range. At the end of last year the Society removed notice periods from all variable rate accounts and reduced the number of accounts in its off-sale range benefitting 1.5 million members. Earlier this year the on-sale range of accounts was streamlined and introductory bonuses were removed, while maintaining the rates at the same level as when the bonus was included. In addition, most accounts are now accessible in branch and online.

For many years the Society campaigned for a change in the structure of tax-free savings. Nationwide was delighted when earlier this year the Chancellor reacted to our calls by increasing both the amount that can be saved in an ISA and allowing people to switch freely between stock and shares and cash ISAs.

Chris Rhodes, Nationwide’s Executive Director, said: “Over the last year Nationwide has really shown its mutual difference by helping millions of members with their savings and current account needs."

“We continue to attract increasing numbers of customers from the big banks. The combination of competitive products combined with a strong reputation for customer service is making Nationwide stand out amongst its competitors. We have been one of the big winners of the Current Account Switch Service with 10.8% of all switchers moving their main account to the Society in March."

“The last year has been difficult for savers, but despite a low rate environment Nationwide has continued to offer competitive rates and reward loyal savers. Our recent success in calling for ISA parity shows that we are prepared to stand up for savers and champion issues that matter to them."

“Our Loyalty Saver account rewards members based on the length of time they have been a loyal customer, rather than some other provider accounts that reward the amount of money they bring to them. The account has brought real value to members giving them an extra 130 million pounds of valuable interest.”

Notes to editors:
Full details on Nationwide’s current accounts

Full details on Nationwide’s savings accounts

* Based on 254 working days last year (Monday – Friday exc Bank Holidays)

** If we compare the average loyalty rate of 2.00% paid over the year vs. the average instant access rate on the market (0.88%) the differential in gross interest paid is c£136m annualised.

About Nationwide

Nationwide is the world's largest building society as well as the second largest savings and mortgage provider in the UK. It is also a major provider of current accounts, credit cards, ISAs and personal loans. Nationwide has around 15 million customers.

Customers can manage their finances in a branch, via the mobile app, on the telephone, internet and post. The Society has around 17,000 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.

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.

Please note: If you are a customer looking for information on our products and services, please visit the main website.