Nationwide is poised to implement several updates to some of its primary customer accounts in the forthcoming weeks, with changes set to be effective by May 2025. The building society informed customers on Friday about upcoming alterations for current account and FlexDirect holders.
The imminent modifications include new safeguards to support fraud victims and adjustments to deposit limits. An additional alteration relates to the method by which funds can be redirected to charity upon the closure of an account. Starting May 1, Nationwide has declared plans to close dormant current accounts that have seen no activity for 15 years; nevertheless, account holders will be contacted prior to any closures.
According to Nationwide, the act of donating to charity under these conditions is a rare event, reserved for instances where the customer does not hold another active current account into which funds could be transferred.
This move by Nationwide will apply solely when trivial sums, such as pence or a handful of pounds, remain in the account at the time of its closure. Affected customers will be notified ahead of time, and they retain the option to request a return of their money.
Amongst other changes coming from May 1, Nationwide has announced a reduction in fees for FlexDirect customers who need to send substantial amounts via the Clearing House Automated Payment System (CHAPS), which is typically used by those requiring to transfer significant amounts within the UK.
Nationwide is set to reduce the fee for sending large sums of money between UK bank accounts from £20 to £15 starting in May. The building society also plans to lower its charges for transferring funds from overseas accounts into the UK from £20 to £15.
From May 1, Nationwide will have new limits on the amount you can deposit into your account. These restrictions apply to cash deposits, cheque deposits, and payments made online or in a branch. For instance, at any Nationwide branch counter, you’re currently allowed to deposit up to £5,000 per account each day.
While this information is typically accessible on the Nationwide website, the building society has indicated that it may change the maximum cash deposit amounts without prior notice to customers, as part of efforts to combat cash-based money laundering. If you’re planning to deposit a substantial sum, it’s advisable to contact your local branch beforehand to ensure the transaction can proceed smoothly.
In terms of fraud protection, Nationwide announced that starting in April, it will implement new measures to help customers recover funds if they fall victim to a scam. Banks are now required to reimburse victims of authorised push payment (APP) fraud unless the customer was “grossly negligent”.
Initially, customers were expected to be eligible for reimbursements up to £415,000. However, the newly implemented rules have set a cap of £85,000. Banks can choose to exceed this limit and repay higher amounts if they wish.
Nationwide has stated that it will refund customers up to the maximum amount stipulated by regulators if the payment was made in British Pounds via bank transfer to another UK account. Yet, the bank cautioned that there may be instances where you might not receive your money back.
This includes situations where you disregard a warning from Nationwide, the police or another authority about potential fraud. Additionally, you may not be eligible for a refund if you fail to inform Nationwide within 13 months of the final scam payment from your account.
If you suspect you’ve fallen victim to a scam, you can report it on the Nationwide website at www.nationwide.co.uk/help/fraud-and-security/reporting-fraud-or-a-scam/. Alternatively, you can reach out to its helpline on 0800 055 66 22.