Nationwide Building Society is being slammed for its "very unfair move" after handing out millions of pounds to customers as part of a loyalty scheme.
The country's biggest building society recently begun distributing £50 payments to eligible customers as a "thank you" following its acquisition of Virgin Money.
Over 12 million customers started receiving the payments last week but not all Nationwide members will benefit from this gesture, with approximately five million customers set to miss out.
The payment comes as part of what the building society is calling "The Big Nationwide Thank You" initiative which recognises the role that members played in building the financial strength that made the Virgin Money acquisition possible.
Nationwide Building Society is under fire
NATIONWIDE / GETTY
Taking to X, one customer said: "I see that some of us have only got £50 bonuses in our accounts, but now you are issuing £100 bonuses to customers. This is very unfair to some customers."
In response, Nationwide Building Society confirmed that the £50 thank you payments are "in addition to the Fairer Share Payment we made last year", which is a separate payment of £100 that went out in June 2024 as the lender shared its profits with members.
Nationwide added: "We would like to make another Fairer Share Payment this year, but this will depend on how we perform financially. We'll announce our decision when we publish our results for the 2024/25 financial year.
"The Big Nationwide Thank You payment is £50 per person, if a joint account was eligible then each account holder will have received £50."
Many customers are missing out on the building society's loyalty scheme
GETTY/NATIONWIDETo receive the payment, customers must meet specific eligibility criteria related to their membership status and account activity. To qualify for the £50 payment, customers must have been a Nationwide member on September 30, 2024 and still be a current member.
Additionally, in the year ending September 30, 2024, they must have had at least one qualifying transaction on their Nationwide current or savings account.
Alternatively, they could qualify by having at least £100 in total across one or more Nationwide current accounts and savings accounts. Mortgage holders are also eligible if they owed at least £100 in total on one or more Nationwide residential mortgages.
Customers who switched to a Nationwide current account between July 1, 2024 and September 2024 using the current account switch service also qualify for the payment.
Those who do not meet these specific criteria will not receive the £50 bonus. Approximately five million Nationwide customers will not receive the cash payment as they did not meet the eligibility requirements.
For those who do qualify, there are tax implications to consider. Nationwide has confirmed that for customers with current or savings accounts, the £50 payment is taxable savings income.
This means it will be treated in the same way as any interest earned from accounts. Most people will not need to pay tax on the reward thanks to the personal savings allowance, which allows basic-rate taxpayers to earn £1,000 a year from savings interest tax-free.
However, higher or additional-rate taxpayers with substantial non-ISA savings may need to pay tax on the bonus to HM Revenue and Customs (HMRC).
Those who do not file Self-Assessment returns will not need to take action, as the building society will report the bonus to HMRC automatically.
However, Self-Assessment taxpayers will need ensure the payment is included in their tax return before the annual deadline on October 31.
LATEST DEVELOPMENRTS:
Britons could be entitled to sizable sum of extra cash
PADebbie Crosbie, Nationwide CEO, commented on the initiative: "Nationwide became even stronger when it bought Virgin Money and we are already improving services for its customers."
"The Big Nationwide Thank You recognises the role our members played in building the financial strength that made the deal possible," Crosbie said.
The CEO highlighted how the payment demonstrates the advantages of banking with the building society.
"It's another of the very real benefits of being a member of Nationwide and our modern mutual model," she added.
