ALL CHANGE
Virgin Money issues important update to customers over Nationwide takeover
Are you one of the 24.5million customers who are affected?
NATIONWIDE has completed its takeover of Virgin Money and is contacting customers by email to let them know what the merger will mean for them.
Britain’s largest building society announced that it had agreed to a £2.9billion deal to take over Virgin Money in March.
1
While there are no immediate changes for customers of either bank, they could be introduced in future as the Virgin Money brand is phased out.
Under the plans the two companies will run as separate entities and the Virgin Money brand will be retained for six years before being rebranded as Nationwide.
The deal was completed yesterday after it received the necessary approvals from regulators and Virgin Money shareholders.
But Nationwide members were not given a vote on whether the sale should go ahead.
Read more on banking
The move will create a combined group with around 24.5million customers, more than 25,000 staff and nearly 700 branches.
This would make the organisation the country’s second largest mortgage and savings group.
In the email to customers Nationwide chairman Kevin Parry said that the building society is now “stronger and able to deliver even greater value” for its members.
He said: “As we integrate Nationwide and Virgin Money carefully over time, the impact we have in communities across the UK, and the benefits we offer to members and customers, will only increase.
Most read in Money
“One in three people in the UK now have a connection to Nationwide - this deal means we can do even more to make their banking fairer, more rewarding, and for the good of society”.
He added that although you will not be able to use Virgin Money branches to do Nationwide banking, over time the range of services on offer will be expanded.
Major bank paying out £100 to customers
This could mean that as a Nationwide customer you could be able to do day-to-day banking such as paying in money or opening a savings account in a Virgin Money branch.
Nationwide customers will also be able to benefit from Virgin Money’s expertise in personal lending and credit cards, he added.
What does the takeover mean for Virgin customers?
In a statement on its website Virgin Money said that for now it is “very much business as usual”.
There will be no impact to Virgin Money, Clydesdale and Yorkshire bank, which were bought by Virgin Money under previous acquisition deals.
Where to find the best savings rates
Many savings accounts offer miserly rates meaning that money is generating little or no return.
However, there are ways to get your cash working hard. Sun Savers Editor Lana Clements explains how to make sure you money is getting the best interest rate.
Easy access savings accounts offer flexibility for customers, meaning they can dip in and out of cash when needed. However, the caveat is that rates can change at any time.
If you're keeping your money in an easy access account, you'll need to keep checking whether it's the best paying account for your circumstances and move if not.
Check in at least once a month to see what is happening in the market.
Check what is offered by your bank - sometimes the best rates are for customers only.
But do search the wider market as often top savings accounts are offered by lesser known providers.
Comparison sites are a good place to check for the top rates. Try Moneyfactscompare.co.uk or Moneysupermarket.
You can search by different account type. You'll usually get a better interest rate if you can lock your money away for a fixed amount of time, but it's always a good idea to keep some money in an easy access account in case of emergencies.
Don't overlook regular savings accounts often pay some of the best rates, but you'll need to commit to monthly payments. This can be a great way to get into a savings habit while earning top rates at the same time.
This means that you can continue to sign up for products and services from the bank and contact its customer service as usual.
The two banks will continue to operate as separate entities within the Nationwide Group.
This means that Virgin Money customers will not receive Nationwide’s Fairer Share payments, which gives eligible members £100.
But this could change in the future if Virgin Money customers are transferred to Nationwide.
Virgin Money branches are also now included in the Nationwide Branch Promise.
This means that everywhere there is a Virgin Money branch it promises to still be there until at least the start of 2028.
Customers who have savings with Virgin Money will continue to have their nest eggs protected under the Financial Services Compensation Scheme (FSCS).
This is a program which protects savers and compensates them up to £85,000 if their bank or building society goes bust and is unable to return the funds they have saved with it.
Virgin added that it will continue to update its website with the latest news on the merger.
However, the bank warned that customers should remain alert to scams as fraudsters often take advantage of periods of change to try and persuade people to share key information.
Details such as your address, mobile number, email address and bank details can be used to register credit cards and loans in your name or to steal money from your bank account.
Your bank will never ask you for security details, whether over the phone, by email or by any other means.
If someone asks you for this information do not provide it.
Instead, report the email, call or text message to Action Fraud by calling 0300 123 2040.
What does the merger mean for Nationwide members?
There are no changes for new or existing Nationwide customers for now.
Members can continue to apply for new products such as savings accounts, loans and mortgages as normal.
The building society’s customer service is still available to those who have queries and complaints.
All Nationwide members will continue to be protected under the FSCS scheme on savings of up to £85,000.
READ MORE SUN STORIES
Eligible members will also continue to receive Fairer Share Payments as and when they are paid out.
To qualify you must have a current account and a qualifying savings account or mortgage with the building society.
Do you have a money problem that needs sorting? Get in touch by emailing [email protected].
Plus, you can join our Facebook group to share your tips and stories
Topics