Nationwide is continuing its commitment to rewarding existing members with access to its best savings rates with the launch of a new version of its Member Exclusive Bond. The new 30-month bond, which launches today (Tuesday 3 November), will pay a market-leading 5.30% AER/gross a year (fixed).
The Member Exclusive Bond is available exclusively to Nationwide members and Virgin Money customers who are members of Nationwide (see Notes to Editor for more product detail).
Based on someone saving the full £10,000, they would receive £1,381.92 in interest after the full 30 months1 – demonstrating the impact of a market-leading longer-term savings account. It builds 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.
It comes as new Nationwide research2 highlights the importance people place on being rewarded for their loyalty, with 85 per cent3 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 savers4 say they have previously felt overlooked despite their loyalty.
Nationwide’s research suggests 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.”
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