SALLY HAMILTON: Nationwide, I declare an infuriator (lack of) interest

Rate increases: Nationwide has decided not to pass the total increase to millions of its savers

SALLY HAMILTON: Nationwide, I declare an infuriator (lack of) interest

Sally Hamilton, financial mail on Sunday

Nationwide – on your side. This is the image of support that he likes to portray to the construction society with his catchy advertising slogan.

How discouraging it is then to discover, following the increase in the Bank's base rate of 0.25 percentage points to 0.75 percent 10 days ago, that Britain's largest mutual savings institution has chosen not to pass on the total increase to millions of its beleaguered savers .

As a long-standing customer, I must declare an interest, or more appropriately, an exasperating "lack of interest".

Rate increases: Nationwide has decided not to pass the total increase to millions of its savers

Rate increases: Nationwide has decided not to pass the total increase to millions of its savers

The rate paid on my Nationwide e-Isa will increase by only 0.05 percentage points to 0.55 percent later this month and my call & # 39; loyalty savings & # 39; it will remain unchanged at 0.7 percent.

The only savers that society considered worthy to support in a meaningful way are those with their help to buy Isa. They have been granted an increase of twice the increase in the base rate, increasing their interest from 2 to 2.5 percent.

Nationwide tells me that "helping people save to buy their own home is the core of our mutual purpose." Increase our help to buy the Isa rate at 2.5 percent supports this goal.

He has been caught in his deception. Loyal customers deserve better

Call me cynical but the savers with this account will become by definition borrowers. Although it is not mandatory for Isa Buy Aid customers (who also receive a 25% government bonus on their balance) to obtain their mortgage loan from the same provider, Nationwide has surely calculated that a fair number will take the path of least resistance. It will not take long to recover the cost of your relative generosity once the mortgage reimbursements begin to arrive.

The savings expert Rachel Springall in Moneyfacts, the market control agent, says that as the largest mutual in Britain has "lost a trick" by not passing the promotion to all its customers to set an example to the miserly high street banks . I take a tougher line at Nationwide and say I have been caught in their deception. Loyal customers deserve something better, and I do not just mean me.

Student loans

On the subject of interest rate deception, my eldest daughter's last student loan statement came last week. He entered the working world more than two years ago (a great relief for mom and dad's bank) and began to pay off his loan.

In the statement period, which runs from April 2016 to January 2018, the total repayments were £ 642. It looks like you are making decent progress by eliminating your debt of £ 28,000. It is not a bit of that. The interest accrued at the same time amounted to £ 607. Your reimbursement efforts have resulted in a net loan reduction of only £ 35.

"Shameful" student loan rates: the government is reviewing student financial arrangements

"Shameful" student loan rates: the government is reviewing student financial arrangements

"Shameful" student loan rates: the government is reviewing student financial arrangements

Now I am nervously awaiting the arrival of the student loan statement for my youngest daughter who has recently graduated. It will not make a comfortable reading.

Unlike my eldest daughter, she is part of a subsequent student fee that not only earned higher fees but also astronomical interests: 6.1 percent during a significant period while studying and now 3.1 percent until she starts earning. Her older sister pays only 1.5 percent interest.

The government is reviewing the student financial arrangements and the pressure is rising in their coffins to recover the non-reimbursable grants for the most disadvantaged. This would be a very welcome development. But you should also take the opportunity to play fair with the armies of young people who face this shameful interest rate, a level up to eight times higher than the new bank base rate.

Vacation money

Just in time for the peak holiday season, the pound has touched a rocky patch. Last week he turned sharply against the euro and the pound for very short nerves. There is not much travelers can do about the turmoil in the world currency markets, but they can be smart about how to buy and spend their vacation money.

Apologies for sounding like a broken record, but do not buy last minute at the airport.

In Gatwick last weekend, I was desperate to see queues at the exchange offices. And do not let your guard down once in your destiny. If you are asked to pay in sterling in hotels, stores and ATMs instead of in the local currency, just say & # 39; no! & # 39;

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