Kevin Peachey
Cost of living correspondent
More than 12 million customers of Nationwide will each receive a payment of £50 following the takeover of Virgin Money.
The Nationwide, the UK’s largest building society, described the money as a “thank you” to its members, at a cost of £600m.
However, there was criticism that the same members were not given a vote on the £2.8bn acquisition of Virgin Money last year.
Most customers will receive the £50 directly into their accounts by the end of April, although some will be paid by cheque.
Nationwide is writing to members receiving the payment from now to let them know how and when they will get the money.
The payments will go to more 12 million customers who:
Had a savings or current account, or mortgage, at the end of last SeptemberAdditionally, have made at least one transaction on their current account or savings, or had a balance of at least £100 in their current account, savings or mortgage in the 12 months to the end of September last yearStill have their accounts or mortgage at the time the payment is madeThose criteria mean about four million customers will not receive the payment.
The customers of Virgin Money – which was the name for the Clydesdale and Yorkshire bank group – will not be eligible for the money either.
Debbie Crosbie, Nationwide chief executive, said the payment “recognises the role our members played in building the financial strength that made the deal possible”.
Following last year’s deal – the biggest banking takeover since the financial crisis – Nationwide became the UK’s second largest provider of mortgages and savings accounts.
However, there was some controversy over the fact that, while Virgin Money members were given a vote on the deal, Nationwide members were not. Nationwide’s board decided no member approval was required.
The £50 payment is separate to Nationwide’s so-called fairer share payments scheme, which periodically returns some of its profits to members.
