Nationwide Building Society launches three new benefits in major boost for millions of customers

From September 25, the Building Society will offer a £175 switching incentive for those moving their current account to Nationwide.

Additionally, FlexDirect account customers will earn one per cent cashback on debit card spending, alongside the existing five per cent AER interest rate. The third benefit is a £50 interest-free overdraft buffer, set to launch in November.

The £175 switching incentive is available to customers who complete a full switch using the Current Account Switch Service.

To qualify, applicants must transfer at least two active Direct Debits, deposit £1,000, and make one debit card payment within 31 days.

New accounts can be opened via Nationwide's website, Internet Bank, or Mobile Banking App.

Existing customers can also switch accounts from other providers to their Nationwide account through the Internet Bank.

Customers can choose from three main current accounts:

• FlexPlus, a packaged account with travel insurance and other benefits
• FlexDirect, an online account with high interest rates
• FlexAccount, a fee-free everyday banking option

FlexDirect account holders will benefit from a new one per cent cashback offer on debit card spending, capped at £5 per month for the first 12 months.

This incentive is available to customers who haven't previously received a FlexDirect offer.

The cashback feature complements the existing five per cent AER credit interest on balances up to £1,500, also for the first year.

Nationwide's research revealed that customers prefer rewards for everyday essential spending and value simplicity in accessing cashback.

This approach contrasts with retailer-specific opt-in schemes, making it more convenient for customers to earn rewards on their regular purchases.

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From November, Nationwide will introduce a £50 interest-free overdraft buffer across its three main current accounts: FlexPlus, FlexDirect, and FlexAccount.

This new feature aims to support customers who occasionally dip into their overdraft, reducing the representative APR to 38.2 per cent.

The buffer will apply to both new and existing customers, providing a safety net for minor account overruns.

However, the introductory overdraft offer on FlexDirect accounts will be discontinued for new openings, replaced by the cashback incentive.

Existing FlexDirect customers already benefiting from a previous offer will see no changes to their current arrangements.

Tom Riley, director of retail at Nationwide Building Society, said: "We want to give people every reason to join Nationwide. Our new incentives are the latest demonstration of how we are making banking more rewarding for customers.

"We believe this shows the difference of being part of a modern mutual, which reinvests it profits for the benefit of members and customers, not shareholders."

These new benefits underscore Nationwide's commitment to customer satisfaction, having remained first in this area among its peer group for 12 consecutive years.

Last year, the building society returned £385 million to eligible members through the £100 Fairer Share payment, demonstrating its dedication to reinvesting profits for member benefits.