Nationwide Building Society is competing aggressively for new clients by offering a market-leading 8% regular savings account and a premium £200 switching bonus. Nationwide’s new products and services put it in a prime position to attract customers in the competitive UK savings and current account market.
The new Flex Regular Saver account is the best option because it offers 8% AER interest on monthly balances up to £200. The account provides a unique opportunity for savers to keep up with inflation, which is still in the double digits.
Our goal is to ensure that customers have a positive experience with Nationwide. Tom Riley, Nationwide’s director of retail products, explained why the company offers a market-leading rate of eight percent AER on its Flex Regular Saver to both new and existing clients with current accounts.
However, there are conditions to the offer. New clients will need to create a qualifying account with Nationwide before they can take advantage of this offer. The FlexPlus, FlexDirect, FlexAccount, FlexStudent, FlexGraduate, FlexBasic, and FlexOne plans are among those offered.
There is a cap of three withdrawals per calendar year, after which the interest rate drops to 2.15%. There is a limit of one Flex Regular Saver account per customer.
However, the account offers an unmatched steady return for existing customers who are ready to operate within the limits. If you put away the maximum of £200 per month, you’ll have saved £144 after a year. If you contribute the maximum each year for three years in a row, you’ll end up with £432 in interest, which is a nice bonus on top of your initial savings of £7,200.
The Start to Save and Loyalty Builder accounts from Nationwide, which pay 5% and 5.25%, respectively, complement the new account perfectly. Despite having benefits such as no withdrawal limitations, the payout on those products is much lower than the current one.
Nationwide’s Switching Bonus of £200 Is a Nice Addition to the Savings Offer
Nationwide announced a £200 bonus for new customers who move their current account using the official Current Account Switching Service at the same time as the release of the Flex Regular Saver. The new savings deal of 8% is attractive since it is at the top of the market, where it will attract the most depositors.
To be eligible, consumers must move at least two active direct debits from their previous bank to a Nationwide current account. The bonus is paid no later than 10 days after the move is finalized. Switching an existing current account from another bank to a new or existing Nationwide account via the Internet Bank also qualifies existing members to receive the £200 bonus.
Nationwide is using a two-pronged approach in its marketing, aiming for both new and current consumers. Customers can earn 3% interest on balances up to £3,000 for the first 12 months after opening a FlexDirect account, in addition to the other benefits of a Nationwide current account, such as fee-free international spending and ATM withdrawals.
Nationwide Claims Its Customers Have a First-Year Earnings Potential of Over $377
Smart clients who take advantage of the new savings and switch accounts could make almost £377 within the first year, as calculated by Nationwide.
In order to receive the £200 bonus, it is assumed that the consumer would convert their primary account to FlexDirect using the Current Account Switching Service. It also assumes they sign up for the free Flex Regular Saver account right away and make 12 monthly deposits of £200 to earn the maximum 8% interest.
They would receive £144 in interest through Flex Regular Saver on a total deposit of £2,400. The £200 switching bonus brings the total income for the first year to £344. With the FlexDirect account’s introductory 3% interest rate, Nationwide estimates that the total benefit may be more than £377.
Realizing such benefits, however, calls for a multi-account setup and the fulfillment of other requirements, such as the maintenance of active direct debits on the FlexDirect current account. The estimations are meant to emphasize prospective advantages rather than assured profits.
New Members Are the Target of Nationwide’s Aggressive Campaign
The audacious two-pronged effort exemplifies Nationwide’s, as a member-owned building society, aggressive hunger for new business. Nationwide often highlights customer-focused solutions by highlighting how their model is distinct from that of competitors like HSBC, Barclays, and Lloyds.
“We believe this is further demonstration of the difference of being part of a modern, member-owned organization,” Riley added.
Mutual organizations like Nationwide face stiff competition from both established financial institutions and upstarts that focus only on digital banking, such as Monzo and Starling Bank.
Nationwide’s goal is to increase the number of members eligible to receive future member benefits by providing market-leading returns to savers and switchers. Ultimately, the strategy is geared toward strengthening the company’s ties with its clientele in an increasingly competitive financial services market.
Smart savers and switchers can use these bargains to achieve returns that easily beat even the biggest inflation in decades. However, Nationwide’s overarching objective is to parlay this kind of strong market presence into long-term member connections.