For millions of Nationwide Building Society customers, the annual arrival of the Fairer Share Payment has become something of a tradition—and, for many, a welcome financial boost. But as 2026 dawns, questions about eligibility, tax treatment, and reporting obligations are swirling with renewed urgency. The combination of a possible repeat of the £100 bonus and new clarity about how these payments are reported to HM Revenue & Customs (HMRC) has set off a flurry of customer inquiries, expert commentary, and, inevitably, a bit of confusion.
So, what exactly is the Fairer Share Payment? According to reporting from The Telegraph and MoneySavingExpert, it’s a one-off £100 bonus distributed to eligible, long-standing Nationwide members. To qualify, customers must hold both a Nationwide current account and a qualifying savings product or mortgage. The bonus is designed to reward deeper engagement with the building society—a gesture that, for the past three years, has seen a significant portion of Nationwide’s profits returned to its members.
Last year alone, Nationwide paid out a staggering £400 million to four million members, and the year before, £385 million to 3.85 million people. That’s no small change. While there’s no ironclad guarantee the scheme will run again in 2026, Nationwide has indicated that, as in previous years, the final decision will be announced with its full-year results in May. Historically, the payment is announced in May and lands in members’ accounts in June, with eligibility based on activity in the first three months of the year.
For those eager to maximize their chances of receiving the payment this year, the advice is clear: don’t close your Nationwide current account, at least not before March 31, 2026. But that’s just the beginning. The specifics of what you need to do depend on the type of current account you hold. For FlexAccount, FlexBasic, or FlexDirect holders, you’ll need to either pay in at least £500 and make two payments out in two of the first three months of the year, or make 10 or more payments out in two of these months. Alternatively, a full current account switch to Nationwide between January 1 and March 31, 2026, also qualifies.
If you’re using a FlexOne, FlexGraduate, or FlexStudent account, the bar is lower: a single payment in or out in March 2026, or a full switch to a FlexOne or FlexStudent account within the same timeframe, should suffice. FlexPlus account holders simply need to pay their monthly fee. Payments out can include debit card transactions, Direct Debits, bank transfers, and standing orders—just not transfers between your own Nationwide accounts.
But that’s not all. To qualify for the bonus, you must also have at least £100 in savings with Nationwide, or owe at least £100 on a Nationwide mortgage, as of March 2026. For those without either, the advice is to deposit £100 (or, to be extra safe, £200) into a Nationwide savings account. The Flex Regular Saver, which offers a competitive 6.5% interest rate and allows up to three penalty-free withdrawals a year, is a popular choice.
New customers aren’t left out, either. Switching your current account to Nationwide by March 31, 2026, could net you a £175 switch bonus, plus 5% interest on up to £1,500 held in the account and up to £5 a month cashback on debit card spending for a year. If the Fairer Share scheme continues, new switchers may also be eligible for the £100 bonus, often under simpler criteria than existing customers. The official Current Account Switch Service (CASS) makes the process straightforward, and for those with youth or student accounts, switching to FlexOne or FlexStudent is an option—though without the switch bonus.
With all these perks, it’s no wonder Nationwide’s Fairer Share has become a hot topic each spring. But the question of how the payment is taxed—and how it’s reported to HMRC—has caused some confusion. As reported by The Telegraph, one customer wrote in to ask whether the bonus should be taxed as a dividend, given Nationwide’s status as a mutual society. “Nationwide advise that the members’ Fairer Share scheme, which currently pays £100 per annum, is from a distribution of profits. On that basis, I would regard the payment as a form of dividend, and should be taxed as such. However, HMRC appears to classify this as an interest payment. My situation is that I use up the £1,000 savings interest allowance and so this £100 was taxed at 20pc, but I don’t use up the £500 dividend allowance (and if I did the tax rate would be 8.75pc),” the customer wrote.
Tax expert Mike Warburton weighed in, clarifying the situation: “The short answer to your question is that HMRC is correct to show it as interest, because – as I will explain – Nationwide is a building society rather than a bank.” Warburton further explained, “If Nationwide had been a bank these payments would have been taxed as a dividend. However, as a mutual society different rules apply.”
HMRC’s own rules make the distinction explicit: “Any sum paid by way of dividend, bonus, interest or otherwise, that is paid to a shareholder in a registered society, and is paid by reference to the shareholder’s holding in the society’s capital... are treated as interest.” In short, the £100 bonus is classified as savings income, not a dividend, for tax purposes. This matters because most basic-rate taxpayers can earn up to £1,000 a year in savings interest tax-free, while higher-rate taxpayers have a £500 allowance. Only those exceeding these thresholds will face a tax bill on the bonus, typically at 20% for higher-rate taxpayers.
For most people, there’s nothing extra to do: Nationwide is obliged to report all such payments to HMRC automatically. Only those who file self-assessment tax returns need to include the bonus on their return. If you’re not in that group, the process is hands-off—though it’s always wise to double-check your annual summary or consult a tax adviser if you’re unsure.
While the mechanics of the Fairer Share Payment may seem complex, the underlying message is simple: Nationwide is making a concerted effort to reward loyalty and engagement among its members. With interest rates on savings often lagging behind inflation, a £100 windfall is an attractive proposition—especially when paired with the possibility of a switch bonus and ongoing perks for everyday banking.
As the financial year unfolds, customers are watching closely for Nationwide’s May announcement. Will the Fairer Share Payment return for a fourth year running? Only time will tell. For now, members can take practical steps to maximize their eligibility, stay informed about tax implications, and enjoy the unique benefits that come with being part of a mutual society.
One thing’s for certain: when it comes to rewarding customer loyalty, Nationwide continues to set itself apart from the crowd.
