Customers desert high street banks for Nationwide

23 May 2013

Nationwide is experiencing a deluge of new customers - over 1,000 day – who are turning their backs on high street banks and running wildly towards the building society with their bags of cash.


Despite their monumental e-banking crashes of a few weeks ago, it seems that people are going crazy for Nationwide’s FlexDirect current account, which pays 5% interest rate on balances over £2500. In fact, their new customer figures are up by 58% on last year.

According to Which! over a quarter of banking customers have some kind of problem with their current account and have made complaints. And although we tend to remain with our banks for years, it’s more likely we’re staying because we’re worried something will go wrong, rather than out of a sense of loyalty.

But with plenty of other places such as the Post Office, M&S and Tesco offering good current account deals at the moment, it looks like the established banks are going to have to come up with something.

Just to demonstrate how much banks are losing the plot, First Direct is offering customers £100 to switch to them – and an extra £200 if you LEAVE.

Yes, if you decide they suck, they’re going to give you £200 anyway. Quick, switch now! Then set up an account with Nationwide and get 5% interest on your readies.

TOPICS:   Banking   Economy


  • dvdj10
    First Direct have offered that for a good 5years or so.
  • daniel
    Err, isn't it balances under 2500.... Pretty huge difference if so...
  • badger
    Lucy dear -- you don't get an extra £200 if you leave First Direct. You get £100. So that's £200 in total.
  • Me
    Having recently switched from First direct to nationwide for a better mortgage deal I would high recommend not doing so. Nationwide screwed up the transfer so badly I ended up going elsewhere for a mortgage (No overdraft applied despite chasing twice, lost initial transfer, lost payment to the mortgage I had with them etc). Nationwide may not be a bank but its IT systems are [email protected] Just go to first direct instead - better internet banking and everything worked when I switched to them. I'd switch back if I wasn't terrified of the consequences of it all going wrong again...
  • Jeremy
    You have to have at least £1000 paid in each month. So I've set up a £1000 standing order from my bank to nationwide and a £1000 standing order from nationwide to the bank. I've also deposited £2500 in nationwide account. So I get nearly 5% of £2500, whilst the £1000 spends most of it's time in the bank's savings account.
  • Dan
    Just an FYI... It's 'up to £2,500' "5.00% AER (4.89% gross p.a.) in-credit interest on balances up to £2,500"
  • Loz
    First Direct refused my business :-/
  • Joe
    The 5% Nationwide offer is rubbish, people are just sucked in by the 5% headline rate. Assuming your balance constantly remained at £2500 throughout the whole year you'd get £100 interest (minus tax), then the rate drops to 1%. First Direct and Halifax will give you £100 straight away, no messing about.
  • Roge
    It is UP TO £2500. pretty big difference
  • Sicknote
    "...customers have some kind of problem with their current account" - more like they can't balance their account and get squeezed for fees; scumbag customers I bet.
  • Why L.
    Tesco don't offer current accounts!!...yet!
  • Sarah
    We'll pay you 5.00% AER (4.89% gross p.a.) interest on your in-credit balance up to £2,500. UP.... TO......

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