October 07, 2013 02:00 ET

New Switching Service Already Making A Difference

Customers initiating a switch to Nationwide up 79% over the last week

LONDON, UNITED KINGDOM--(Marketwired - Oct. 7, 2013) - Seven working days since the launch of the new Current Account Switch Service and Nationwide is already seeing a 79% uplift in the number of people initiating a switch of their current account to the Society compared to the same period the previous week.

Building on success

In the last ten years, Nationwide has substantially grown its market share of current accounts. The most notable increases in the number of people switching their main current account to Nationwide have come over the last three years as people have been looking for alternatives to the big banks:

  • Switchers doubled (195.6%) between the financial years 2009/10 and 2010/11
  • Switchers quadrupled (382.7%) between the financial years 2009/10 and 2011/12
  • Switchers increased six-fold (599.5%) between the financial years 2009/10 and 2012/13

Numbers have increased as the switching process has become easier and as the Society has improved its range of current account products.

Phil Smith, Nationwide's Head of Current Accounts, said: "The new Current Account Switch Service is making it even easier for people to move their accounts to Nationwide and as awareness and confidence increases in the new service we expect even more people to follow suit.

"If you are unhappy with the service you are receiving, or the terms of your current account, there has never been a better time to switch."

New Accounts

The Society continues to challenge the big banks, with three competitive Nationwide current account options to suit the different needs of customers. FlexDirect1, a self-service, non-fee paying account, which pays a market leading 5.0% AER (4.89% gross p.a) and FlexPlus2, a packaged current account paying a competitive 3.0% AER (2.96% gross p.a.) and offering a comprehensive range of benefits, including worldwide travel insurance, mobile phone insurance and UK and European breakdown cover, all for a monthly fee of £10. FlexAccount3, the only fee-free current account to offer free European travel insurance to customers who use it as their main account.

Notes to editors:

Full details on Nationwide's current accounts can be found at:

1 FlexDirect pays 5.00% AER (4.89% gross p.a) in-credit interest on balances up to £2,500 when you pay in £1,000 per month (excluding internal transfers). After 12 months, the interest reverts to 1.00% gross p.a/AER variable. Rates may be withdrawn without notice. Interest is calculated daily.

2 FlexPlus Worldwide travel insurance is provided by UK Insurance Limited. Mobile phone insurance is arranged and administered by Lifestyle Services Group and underwritten by London General Insurance Company Limited. UK & European Breakdown and Recovery Assistance is underwritten by Liverpool Victoria Insurance Company Limited.

3 To qualify for European travel insurance you must:

  • Be a permanent resident of the UK
  • Be aged 16-75
  • Hold a Visa debit card (not cash card or cash card+) and either:

    • Switch all your Direct Debits and standing orders to us from another bank or building society to your FlexAccount, using our Account Transfer Service - backed by our Account Transfer Promise; or
    • Pay in at least £750 per month into your FlexAccount for at least 3 consecutive months (excluding internal transfers)

  • Eligibility will be assessed when the account transfer is complete or at the end of the month, when you have deposited £750 or more

To maintain cover you must:

  • Continue to hold a Visa debit card (not cash card or cash card+)
  • Pay in at least £750 into your account per month (excluding internal transfers), and
  • Remain a UK resident

The European travel insurance offered with the FlexAccount is underwritten by UKI.

Maximum trip limit of 31 days applies. Pre-existing medical conditions must be disclosed.

To upgrade from European to worldwide cover, a fee of £20 will be charged.

You must be 16 or over to apply for FlexAccount, and 18 or over to apply for FlexDirect or FlexPlus (conditions apply to all insurance products).

About Nationwide

Nationwide is the world's largest building society as well as the second largest savings provider and a top-three provider of mortgages in the UK. It is also a major provider of current accounts, credit cards, ISAs and personal loans. Nationwide has around 15 million members.

Customers can manage their finances in a branch, on the telephone, internet and post. The Society has around 16,000 employees. Nationwide's head office is in Swindon with administration centres based in Northampton, Bournemouth and Dunfermline. The Society also has a number of call centres across the UK.

Contact Information