In a significant gesture of appreciation, Nationwide Building Society is set to reward its loyal customers with a £50 cash payment, among other financial benefits, following its recent acquisition of Virgin Money. This decision reflects Nationwide’s commitment to its members after the bank purchased Virgin Money for £2.8 billion in November 2024.
Over 12 million customers will benefit from this payment, which is scheduled to be distributed starting April 9, 2025. To qualify for the cash reward, customers must have had a savings or current account, or mortgage with Nationwide as of the end of September 2024. Additionally, they need to have had a transaction into or out of their accounts or maintained a balance of at least £100.
According to Nationwide's website, "If you think you are eligible and haven’t received an email or letter from us by March 20, 2025, it may be because your contact details are incorrect." Customers are urged to check their details in the internet bank and app to ensure they are accurate.
Furthermore, this incentive is part of a greater financial initiative by Nationwide. The institution has committed more than £600 million to this move, which it has termed the “Big Nationwide Thank You.” This initiative is focused on acknowledging the contributions of its members, as highlighted by Debbie Crosbie, Nationwide's Chief Executive, who stated, "The Big Nationwide Thank You recognizes the role our members played in building the financial strength that made the deal possible."
Following the acquisition, Nationwide not only strengthened its position in the banking market as the country’s second-largest provider of mortgages and savings accounts but also paused plans to close certain Virgin Money branches. Nationwide has pledged not to close any branch where it currently operates until at least 2028, demonstrating its commitment to maintaining presence in local communities.
In a related development, Nationwide has also issued a £100 bonus as part of its Fairer Share initiative, planned for mid-2025. This initiative aims to share a portion of the society's profits with its members, reinforcing the mutual ethos that Nationwide represents as the world's largest building society.
To be eligible for this bonus, members must have a qualifying current account active as of March 31, 2025, along with either qualifying savings of at least £100 or a residential mortgage balance of at least £100. The bonus distribution will occur between June 13 and June 28, 2025, and members are advised that they will be contacted by Nationwide regarding their eligibility by May 31, 2025.
However, Nationwide has warned customers regarding potential tax implications related to these payments. "The payment is a one-off share of our profits to members. The treatment of the payment for UK tax purposes depends on whether you are an investing, a borrowing member, or both," the bank explained on its website. While the bank is not required to deduct any tax from this reward, it will report the payment to HM Revenue and Customs (HMRC).
Customers may be liable for income tax depending on their total interest received in the tax year of the payment exceeding their Personal Savings Allowance. Nationwide emphasizes that it takes "no responsibility" for tax advice, urging customers to seek independent advice if needed.
As these financial incentives roll out, Nationwide seeks to underline its commitment to customer loyalty and enhance service offerings that arise from the Virgin Money acquisition. By reinforcing their member-first philosophy, Nationwide aims to both reward loyal customers and continue expanding its influence in the UK banking sector.
In summary, Nationwide Building Society is making significant strides in recognizing its customers through substantial cash payments and bonuses, aiming to solidify relationships built over years of mutual trust and service utilization. These initiatives are indicative of a broader strategy to share profits and strengthen member engagement post-acquisition.
