Nationwide Building Society: Products, Mutual Ownership, Complaints Record and How It Compares

UK BRAND PROFILE · BANKING

What makes Nationwide different: mutual ownership

Nationwide is a building society, not a bank. It is owned by its members, who are its customers, and has no external shareholders. This mutual structure shapes how the society sets its strategy, distributes surplus and runs its governance, including a member vote on board candidates and major decisions.

Nationwide is the UK's largest building society, tracing its history to 1846. As a mutual, it is owned by its members, meaning people who hold a qualifying savings account, mortgage or current account. Members have voting rights at the Annual General Meeting (AGM), where they can vote on resolutions and the election of board members. Unlike a listed company, Nationwide does not pay dividends to shareholders; instead, any surplus is retained within the society or returned to members through initiatives such as the Fairer Share payment, which has been made in some years to eligible members who hold certain products.

The mutual model also influences the society's approach to pricing and service. Nationwide states that it aims to offer competitive rates on savings and mortgages, and it publishes its member benefits and community contributions in its annual report. The society's governance includes a member council, which represents the interests of members and provides a channel for feedback and scrutiny. Members can also propose resolutions for the AGM, subject to certain thresholds of support.

In 2024, Nationwide completed the acquisition of Virgin Money, a bank. This acquisition was approved by members at a special general meeting. The society has stated that the Virgin Money brand will continue to operate separately for the time being, and that the acquisition will not change Nationwide's mutual status. The society continues to be regulated by the Prudential Regulation Authority and the Financial Conduct Authority, and it is covered by the Financial Services Compensation Scheme (FSCS) for eligible deposits.

Nationwide's own products

Nationwide offers a range of retail products under its own brand, including current accounts, savings accounts, mortgages, personal loans and credit cards. Its FlexPlus packaged current account charges a monthly fee and comes with benefits such as travel insurance and breakdown cover. The society also owns Virgin Money, which operates as a separate brand.

Nationwide's current account range includes a standard current account, a FlexDirect account that offers an interest rate on credit balances for the first year, and the FlexPlus account, which has a monthly fee of £13. FlexPlus includes benefits such as worldwide travel insurance, mobile phone insurance, breakdown cover and commission-free spending abroad. These benefits are provided by third-party insurers, and terms and conditions apply.

In savings, Nationwide offers a range of instant access and notice accounts, as well as fixed-rate bonds and cash ISAs. Rates vary and are subject to change. The society also offers a Help to Buy ISA and a Lifetime ISA, which are government-backed savings products. For mortgages, Nationwide provides products for first-time buyers, home movers, remortgagors and buy-to-let landlords. It also offers mortgage products for people with a smaller deposit, such as 95% loan-to-value deals.

Nationwide offers personal loans with fixed rates and no arrangement fees, and it provides credit cards, including a balance transfer card and a purchase card. The society also offers insurance products under its own name, such as home, life and travel insurance, but these are underwritten by partner insurers, not by Nationwide itself. In 2024, Nationwide completed the acquisition of Virgin Money, which continues to operate as a separate brand offering its own current accounts, savings and credit cards. The acquisition is expected to bring benefits to members, but the society has said that the Virgin Money brand will remain distinct for the foreseeable future.

Insurance under the Nationwide name: who underwrites it

Nationwide does not underwrite its own insurance products. Instead, it partners with external insurers who provide the cover under the Nationwide brand. The specific underwriter can vary by product and over time, so customers should check their policy documents or the Nationwide website for the current provider.

Nationwide offers a range of insurance products, including home insurance, life insurance, travel insurance and car insurance. These are sold under the Nationwide name, but the actual risk is carried by partner insurance companies. For example, home insurance may be underwritten by a company such as Legal & General or another provider, depending on the policy. The underwriter is responsible for paying claims, and Nationwide acts as the intermediary or distributor.

Customers who buy insurance through Nationwide should check the policy documents to see which insurer is underwriting the cover. This information is also usually available on the Nationwide website or by contacting the society directly. The Financial Services Compensation Scheme (FSCS) protects policyholders if an insurer becomes insolvent, but the level of protection depends on the type of insurance and the circumstances. For general insurance, such as home or car, the FSCS may cover claims if the insurer fails, but it does not cover all types of policies.

It is important to note that Nationwide's insurance products are not covered by the FSCS in the same way as deposits. If a customer has a complaint about an insurance product, they can contact Nationwide in the first instance, and if unresolved, they can refer the matter to the Financial Ombudsman Service (FOS). The FOS can consider complaints about insurance products, including those sold under the Nationwide brand, but the decision will be based on the conduct of the insurer and the distributor.

Complaints record and service data

Nationwide's complaints record is published by the Financial Ombudsman Service (FOS) in its half-yearly data. The data shows the number of complaints made about Nationwide and the proportion that were upheld in favour of the customer. Nationwide's uphold rate has been lower than the average for some banking groups, but it varies by product.

The Financial Ombudsman Service (FOS) publishes data on complaints about financial firms every six months. The data includes the number of complaints received, the product type, and the outcome, including whether the complaint was upheld in favour of the customer or not. For Nationwide, the FOS data shows that the majority of complaints are about current accounts, followed by savings and mortgages. The uphold rate for Nationwide has historically been around 20-30%, which is lower than the industry average of around 30-40%, but this can change over time.

It is important to note that the FOS data only includes complaints that have been referred to the ombudsman after the firm has had the opportunity to resolve them. Many complaints are resolved directly by Nationwide without reaching the FOS. The FOS data also includes complaints about Virgin Money, which is now part of the Nationwide group, but the data is reported separately for each brand.

Customer reviews on platforms such as Trustpilot can provide an indication of customer satisfaction, but they are not a reliable measure of overall service quality because they are often self-selecting and may not be representative. Nationwide has a Trustpilot score that is generally positive, but it is important to read the reviews with caution. The society also publishes its own service metrics, such as customer satisfaction scores, in its annual report, but these are not independently verified.

How Nationwide compares with banks and other mutuals

Nationwide is the largest building society in the UK, with a balance sheet that is larger than many high-street banks. It competes with other mutuals such as Coventry, Yorkshire and Skipton, as well as with the major banks. Comparisons on rates and service can be made using data from the FOS and independent price comparison sites.

Nationwide is significantly larger than other building societies. For example, Coventry Building Society is the second-largest, followed by Yorkshire and Skipton. Nationwide's size gives it a wider branch network and a broader product range, but it also means it is subject to more regulatory scrutiny. In terms of savings rates, Nationwide often offers competitive rates, but not always the highest on the market. It is important to compare rates across all providers, including banks and other mutuals, to find the best deal.

On complaints, the FOS data shows that Nationwide's uphold rate is generally lower than that of some high-street banks, such as Barclays or Lloyds, but it is comparable to other mutuals. For example, Coventry and Yorkshire have had similar uphold rates in recent years. However, the number of complaints per 1,000 accounts may be higher for Nationwide due to its larger customer base.

When comparing Nationwide with banks, it is important to consider the mutual structure. Banks are owned by shareholders, who expect a return on their investment, which can influence pricing and service. Mutuals, on the other hand, are owned by their members, and any surplus is used for the benefit of members, either through better rates or through initiatives like the Fairer Share. However, this does not mean that mutuals always offer better deals; it is essential to compare specific products and rates.

Switching to or from Nationwide

Switching a current account to or from Nationwide is done through the Current Account Switch Service (CASS), which guarantees that payments are redirected for at least 13 months. The switch takes seven working days, and Nationwide may offer switching incentives, but these are subject to change and should be verified.

The Current Account Switch Service (CASS) is a free service that allows customers to switch their current account from one bank or building society to another. The service guarantees that all incoming and outgoing payments, such as direct debits and standing orders, are redirected to the new account for at least 13 months. The switch itself takes seven working days, during which time the customer's old account is closed and the new account is set up.

Nationwide participates in the CASS, so customers can switch to a Nationwide current account from another provider, or switch away from Nationwide to another bank or building society. When switching to Nationwide, customers may be eligible for a switching incentive, such as a cash payment, but these offers are not always available and are subject to terms and conditions. It is important to check the Nationwide website or contact the society to see if there is a current incentive.

When switching away from Nationwide, customers should be aware that any linked products, such as savings accounts or credit cards, are not automatically switched. They will need to close these separately if they wish to do so. The CASS only applies to current accounts, not to savings or other products. Customers should also consider any fees or charges that may apply when closing an account, although most current accounts are free to close.

Is Nationwide a bank or a building society?

Is Nationwide a bank or a building society?

Nationwide is a building society, not a bank. It is the UK's largest building society, with a history dating back to 1846. Building societies are mutual organisations owned by their members, whereas banks are typically owned by shareholders. Nationwide is regulated by the Prudential Regulation Authority and the Financial Conduct Authority.

Who owns Nationwide?

Who owns Nationwide?

Nationwide is owned by its members, who are its customers. Members include people who hold a qualifying savings account, mortgage or current account with the society. As a mutual, Nationwide has no external shareholders. Members have voting rights at the Annual General Meeting and can influence the society's governance.

Does Nationwide own Virgin Money?

Does Nationwide own Virgin Money?

Yes, Nationwide completed the acquisition of Virgin Money in 2024. The acquisition was approved by Nationwide's members. Virgin Money continues to operate as a separate brand, offering its own current accounts, savings and credit cards. The acquisition does not change Nationwide's mutual status.

Is my money safe with Nationwide?

Is my money safe with Nationwide?

Eligible deposits held with Nationwide are protected by the Financial Services Compensation Scheme (FSCS) up to £85,000 per person per institution. This protection applies to current accounts, savings accounts and cash ISAs. It is important to note that the FSCS limit applies to the total deposits held with Nationwide, including any held under the Virgin Money brand, as they are part of the same banking group.

Who underwrites Nationwide insurance?

Who underwrites Nationwide insurance?

Nationwide does not underwrite its own insurance products. Instead, it partners with external insurers who provide the cover under the Nationwide brand. The specific underwriter can vary by product and over time. Customers should check their policy documents or the Nationwide website to see which insurer is underwriting their policy.

LAST REVIEWED 3 SEPTEMBER 2026