Nationwide Customers To Get £50 Each Following Virgin Deal

More than 12 million Nationwide customers will each receive a £50 payment following the acquisition of Virgin Money.

Nationwide described the payouts, expected to cost around £600 million, as a gesture of appreciation to its members.

This move comes after criticism over the lack of input from Nationwide members regarding the £2.8 billion takeover of Virgin Money last year.

The majority of customers will have the £50 paid directly into their accounts by the end of April, although some may receive a cheque instead.

Nationwide is reaching out to members eligible for the payment to inform them about the details, including when and how they will receive the funds.

To qualify for the £50 payment, customers must have:

• Held a savings or current account, or mortgage, as of the end of September last year
• Made at least one transaction on their current or savings account, or had a balance of at least £100 in their current account, savings, or mortgage during the 12 months up to the end of September
• Retained their accounts or mortgage at the time of the payment

As a result, around four million customers will not be eligible for the payment.

Virgin Money customers, including those from the Clydesdale and Yorkshire bank group, will also not receive the payment.

Debbie Crosbie, Nationwide’s CEO, stated that the payment “acknowledges the important role our members played in strengthening the finances that made this deal possible.”

Following last year’s deal, the largest banking acquisition since the financial crisis, Nationwide became the UK’s second-largest provider of mortgages and savings accounts.

However, controversy arose when Nationwide members were not given a vote on the acquisition, unlike Virgin Money members. Nationwide’s board determined that member approval was not necessary.

The £50 payout is separate from Nationwide's "fairer share" payment scheme, which periodically returns profits to members.