Nationwide clients to get £50 every after Virgin Money deal | EUROtoday

More than 12 million clients of Nationwide will every obtain a cost of £50 following the takeover of Virgin Money.

The Nationwide, the UK’s largest constructing society, described the cash as a “thank you” to its members, at a value of £600m.

However, there was criticism that the identical members weren’t given a vote on the £2.8bn acquisition of Virgin Money final 12 months.

Most clients will obtain the £50 straight into their accounts by the tip of April, though some will likely be paid by cheque.

Nationwide is writing to members receiving the cost from now to allow them to know the way and when they may get the cash.

The funds will go to extra 12 million clients who:

• Had a financial savings or present account, or mortgage, on the finish of final September
• Additionally, have made a minimum of one transaction on their present account or financial savings, or had a steadiness of a minimum of £100 of their present account, financial savings or mortgage within the 12 months to the tip of September final 12 months
• Still have their accounts or mortgage on the time the cost is made

Those standards imply about 4 million clients is not going to obtain the cost.

The clients of Virgin Money – which was the identify for the Clydesdale and Yorkshire financial institution group – is not going to be eligible for the cash both.

Debbie Crosbie, Nationwide chief govt, mentioned the cost “recognises the role our members played in building the financial strength that made the deal possible”.

Following final 12 months’s deal – the largest banking takeover because the monetary disaster – Nationwide grew to become the UK’s second largest supplier of mortgages and financial savings accounts.

However, there was some controversy over the truth that, whereas Virgin Money members got a vote on the deal, Nationwide members weren’t. Nationwide’s board determined no member approval was required.

The £50 cost is separate to Nationwide’s so-called fairer share funds scheme, which periodically returns a few of its earnings to members.