2 days ago
Nationwide making huge change to bank accounts used by thousands within HOURS
NATIONWIDE is making a huge change to bank accounts used by thousands of customers within hours.
The nation's biggest building society is overhauling its Business Savings accounts, and the changes will restrict how customers manage their money.
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From July 30, businesses customers will no longer be able to pay money into their savings accounts using cheques.
Nationwide will also tighten its rules on payments into and out of these accounts.
Businesses will only be allowed to deposit money into their account from a single Nominated Account or via internal transfers from other Nationwide business savings accounts under the same business name.
Similarly, withdrawals will now be restricted to transfers to another Nationwide account or a single designated Nominated Account.
Nationwide provides three main Business savings accounts for companies with a turnover of less than £10million.
These include an instant access account, which allows unlimited withdrawals, and three notice accounts with notice periods ranging from 35 to 125 days.
Plus, Nationwide offers three fixed rate bonds, letting businesses lock their savings away for six months, one year, or 18 months.
Savings rates range from 1.7% to 3.5%.
However, due to "high demand" these accounts are not currently accepting new customers directly.
Instead customers can indirectly sign up via savings platforms like Insignis.
Switch bank accounts for free perks
A spokesperson for Nationwide said: "Customers can continue to open new business savings accounts via our cash savings platform partners.
"We continue to provide direct support to our existing customers.
"Recently, we've made a few updates to cheque processing and payment options, guided by how customers are using these services and demand.
"We're committed to supporting customers through these changes."
How do I switch bank accounts?
SWITCHING bank accounts is a simple process and can usually be done through the Current Account Switch Service (CASS).
Dozens of high street banks and building societies are signed up - there's a full list on CASS' website.
Under the switching service, swapping banks should take seven working days.
You don't have to remember to move direct debits across when moving, as this is done for you.
All you have to do is apply for the new account you want, and the new bank will tell your existing one you're moving.
There are a few things you can do before switching though, including choosing your switch date and transferring any old bank statements to your new account.
You should get in touch with your existing bank for any old statements.
When switching current accounts, consider what other perks might come with joining a specific bank or building society.
Some banks offer 0% overdrafts up to a certain limit, and others might offer better rates on savings accounts.
And some banks offer free travel or mobile phone insurance with their current accounts - but these accounts might come with a monthly fee.
What other bank account changes are on the way?
Santander customers have been left outraged after the bank revealed it will start charging £120 a year for an account it promised would be "free forever".
Thousands of small business and self-employed account holders are facing £9.99 monthly charges from October.
This comes despite written assurances that their accounts would always remain free of fees.
The changes will impact three types of business accounts: 1|2|3 Business Current Accounts, Business Everyday Current Accounts, and Business Current Accounts.
The "free forever" promise applied to accounts offered by Abbey and Alliance & Leicester before the 2008 merger with Santander.
The bank first attempted to introduce fees for these accounts in 2012 but backed down after customers threatened legal action.
However, these accounts were shifted to the Business Everyday account in 2015, which did not include the "free forever" promise.
From October 1, these accounts will be closed, and customers will be automatically switched to Santander's new Business Current Account – Classic.
Under the new structure, every Business Current Account – Classic will incur a £9.99 monthly fee, regardless of the type of account customers previously held.
While some accounts were free, others offered additional benefits with charges as high as £40 per month.
The bank is also closing its 123 Lite current account, which offers up to 3% cashback on household bills for a £2 monthly fee, on August 21.
Customers affected by the closure will be automatically switched to Santander's Everyday Current Account.
This account has no monthly fee but does not include cashback benefits.
Meanwhile, NatWest is making changes to its business current accounts by increasing fees for cash payments, cheque transactions, and certain online transfers.
From August 30, cash payments into and out of business accounts will see their fees surge from 70p per £100 to 95p per £100.
Cheque payments, whether processed by hand or via mobile, will also jump from 70p to 75p per cheque.
The bank is also increasing some charges related to its BACS payment system.
The BACS system is a UK payment network used by businesses to make electronic bank-to-bank transfers, such as Direct Debits and Direct Credits.
The fee for processing each individual payment or instruction, will soon rise from 18p to 21p.
The cost to process a file containing multiple payments or instructions will also increase slightly from £5.25 to £5.35.
