Nationwide Building Society issues major update as customers urged to snatch 'generous' 6.5% savings account

Nationwide, which serves more than 16 million members and stands as the country's second-largest provider of savings accounts and mortgages, completed its purchase of Virgin Money in October 2024.

The deal delivered a substantial financial boost to the mutual organisation. A spokesperson confirmed: "We recorded a £2.3billion gain on completion of the acquisition which will help cover integration costs, invest in customer service and deliver more value across the Group."

Millions of customers received a £50 bonus following the successful merger as a gesture of appreciation.

The takeover has enabled Nationwide to broaden its product portfolio significantly. Customers now benefit from an expanded credit card range, while profits retained from Virgin Money strengthen the group's overall financial position.

A spokesperson stated: "Profits can be reinvested in better products and services, meaning we can deliver even greater value back to our customers, through better rates than the market average."

Perhaps most notably, the acquisition transformed Nationwide into the first major mutual to enter the business banking market.

The building society indicated its strategy would continue developing to extend the advantages of mutual ownership to commercial customers throughout the UK.

Nationwide has also moved to reassure customers about the future of its physical presence on the high street. Nationwide recently extended its Branch Promise, guaranteeing all locations will remain open until at least 2030.

A spokesperson said: "We recently extended our Branch Promise to 2030, which includes all Nationwide and Virgin Money branches as we continue to provide choice in how our customers bank with us."

This commitment encompasses 605 Nationwide branches and 95 former Virgin Money locations, bringing the total to 700 sites across the country.

The pledge is particularly significant for 133 communities where Nationwide operates as the only remaining high street banking option. Nationwide is also promoting its Flex Regular Saver account, which offers a competitive 6.5 percent interest rate.

The account permits savers to deposit up to £200 each month over a twelve-month period, after which the accumulated balance transfers automatically to an instant access savings account.

Caitlyn Eastell, a personal finance analyst at Moneyfactscompare.co.uk, highlighted the value of such products: "Regular savers can be a great first step towards maintaining a healthy savings habit.

"These accounts typically pay more generous returns than typical savings options, which allows for savers' hard-earned cash to grow even while inflation remains tricky."

Britons are preparing for a likely cut to savings rates this year as the Bank of England is widely expected to reduce the base rate at least once in 2026, bringing the cost of borrowing to 3.5 per cent.

This will be passed down to savings products, with high street banks and building societies already slashing the rates provided via competitive accounts.

Nicola Morgan, consumer finance expert at Confused, said: "Seeing your savings rate fall can feel like a real blow, especially when you’re trying to build up a financial cushion or put money aside for future plans.

"Even relatively modest reductions in interest can make a noticeable difference to what you earn on your deposits, and with so many accounts being affected it’s likely that a lot of everyday savers will feel the impact."