Nationwide £100 Fairer Share bonus: what you need to know
More than three million Nationwide customers have started receiving a £100 bonus after the building society reported bumper profits during the last financial year.
The 'Fairer Share' offer will be paid directly into eligible members' current accounts by 30 June. Nationwide claims the scheme is part of its commitment to provide banking which not only rewards its loyal customers, but works for the good of society.
Which? explains who will be getting the bonus, how it might impact your tax liability, and reveals the best savings rates for your windfall.
What is the Fairer Share bonus?
The Fairer Share scheme is a one-off £100 lump sum paid automatically to eligible members. Nationwide will pay a total of £340m directly into the accounts of 3.4 million lucky customers.
Nationwide says the payment is it's way of 'giving back to members' and that it can do this as it's a building society, not a bank, and as such it is able to reinvest profits for its members' benefit.
The payout amounts to about 15% of the building society's annual pre-tax profits, which last month was reported to be a massive £2.2bn - a 40% increase on the previous year's high of £1.6bn.
- Find out more: how do current account customers rate Nationwide?
Who is eligible for the Fairer Share payment?
To receive the money, you must hold one of the following Nationwide current accounts and meet the qualifying criteria for each:
- FlexPlus: you must be paying the mandatory monthly fee.
- FlexOne/FlexStudent/FlexGraduate: at least one transaction - either incoming or outgoing - must have been made from the account during March 2023.
- FlexAccount/FlexDirect/FlexBasic: At least £500 must have landed into your current account, plus at least two payments made out of your account, within two of the three months from January to March 2023.
In addition, you need to have either one of these:
- A Nationwide personal savings account or cash Isa containing at least £100.
- A Nationwide mortgage on which you owe at least £100.
All the above products must have been open on 31 March 2023.
Eligible members should already have been contacted about the cash bonus. If you haven’t heard anything yet but still think you’re eligible, you can use Nationwide’s online checker to see if you qualify.
- Find out more: which are the best mortgage lenders?
When will I receive the money?
All eligible members will receive the payment between 13 and 30 June 2023. It will be transferred directly into customers' current account, appearing on the statement as 'Nationwide Fairer Share Payment'.
If a member has more than one account, then the payment will be made into any one of them.
Is the payment taxable?
The bonus is considered a taxable savings income and as such is treated in the same way as any interest you may earn on your personal savings or current account.
It will therefore count towards your personal savings allowance, which is £1,000 of interest on savings for basic rate taxpayers and £500 for higher-rate taxpayers. Additional rate taxpayers don't receive a personal savings allowance, so if you earn more than £125,140 each year, you'll need to pay tax on all your savings interest.
- Find out more: personal savings allowance explained
Spend or save?
If you are lucky enough to receive a windfall then the next question is, what do you do with it? It might be tempting to splurge, but you should consider investing that £100 in a high-interest savings account instead.
Eligible Nationwide members will be given exclusive access to the building society's Fairer Share Bond - a two-year fixed account offering 4.75% AER. But how does it compare to other products on the market?
This table shows the top rates for fixed-term and instant-access cash Isas and savings accounts, ordered by term.
| Account type | Account | AER | Terms |
|---|---|---|---|
| Five-year fixed-term savings account | RCI Bank UK Fixed-Term Savings Account | 5.55% | £1,000 minimum deposit |
| Five-year fixed-term cash Isa | United Trust Bank Cash ISA 5-Year Bond | 4.9% | £5,000 minimum deposit |
| Four-year fixed-term savings account | RCI Bank UK Fixed-Term Savings Account | 5.55% | £1,000 minimum deposit |
| Four-year fixed-term cash Isa | United Trust Bank Cash ISA 4-Year Bond | 4.85% | £5,000 minimum deposit |
| Three-year fixed-term savings account | Investec Bank plc, Raisin UK – 3-Year Fixed-Term Deposit | 5.67% | £1,000 minimum deposit |
| Three-year fixed-term cash Isa | United Trust Bank Cash ISA 3-Year Bond | 4.8% | £5,000 minimum deposit |
| Two-year fixed-term savings account | SmartSave 2-Year Fixed-Rate Saver | 5.56% | £10,000 minimum deposit |
Source: Moneyfacts. Correct as of 21 June 2023, but rates are subject to change.
The top rate for a two-year fixed-term account is 5.56% AER - that's almost one percentage point higher than Nationwide's Fairer Share Bond. However, the latter only requires a £1,000 opening deposit, so is more suited to savers with a smaller sum to invest.
If you already have a large amount tucked away in a savings account and are worried investing that £100 will push you over the personal savings allowance threshold, the money may be better off in a cash Isa instead - you can save up to £20,000 a year, tax-free, with this type of account.
You'll still be getting an impressive return on your money too - the top rate for a one-year and five-year fixed-term Isa is 4.8% and 4.9% AER respectively.
Sadly, none of the market-leading fixed-term personal savings and cash Isas allow you to open an account with a small deposit. The good news is, however, you won't have to compromise too much on interest if all you have to invest is your £100 bonus. A 12-month bond with OakNorth Bank offers 5.56% AER, with a minimum deposit of just £1.
Alternatively, you can open an instant-access account. Opening deposits are generally smaller than fixed-term products and the top rate is currently 4% with the Chip account - way above the average of 2.2% AER for June 2023.
- Find out more: how to find the best savings account
