Nationwide customers will soon see four major changes to their accounts, with updates set to take effect by May 2025. These changes include new fraud protections, adjustments to deposit limits, reduced transfer fees, and the closure of long-dormant accounts. The building society has started notifying customers of these upcoming modifications, which aim to enhance security, streamline transactions, and improve banking efficiency.
As financial institutions continue to tighten fraud prevention measures and adapt to regulatory requirements, these updates reflect a broader shift in banking policies across the UK. While some changes, such as lower transfer fees, may benefit customers, others—particularly the new deposit limits and account closures—could require some adjustments in how customers manage their money. Nationwide account holders are advised to review these changes carefully to ensure they are prepared for any impact on their day-to-day banking activities.
What Changes Are Coming?
Nationwide is introducing four key updates that will affect current account holders and FlexDirect customers. These changes cover everything from how much money can be deposited or transferred to fraud reimbursement rules.
Increased Fraud Protection Measures
From April 2024, Nationwide will introduce new safeguards to help customers recover money lost to fraud. The rules focus on Authorised Push Payment (APP) fraud, where scammers trick individuals into transferring money. Under the new system:
- Victims will be entitled to refunds of up to £85,000, a cap set by regulators.
- Banks can choose to refund more at their discretion.
- Nationwide will only reimburse scams involving payments made in British Pounds to a UK account.
- Customers must report fraud within 13 months to be eligible for a refund.
- If a customer ignores a fraud warning from Nationwide, police, or other authorities, they may not be eligible for reimbursement.
This move aligns with wider financial sector efforts to reduce losses from fraud, but some critics argue the £85,000 limit may still leave victims exposed to large financial losses.
New Deposit Limits on Accounts
From May 1, 2024, Nationwide will introduce limits on the amount customers can deposit. These restrictions apply to cash deposits, cheque deposits, and online payments made through branches or digital banking.
- Customers can currently deposit up to £5,000 per account each day at Nationwide branches.
- The new limits have not been fully disclosed, but Nationwide has indicated it may adjust cash deposit limits without prior notice.
- The primary goal of these changes is to combat cash-based money laundering.
Customers planning to deposit large sums of cash are advised to check with their local branch beforehand to ensure their transaction can be processed without issues.
Reduced Fees for Large Transfers
From May 2024, Nationwide is lowering fees for high-value transfers, making it cheaper for customers to move large sums of money:
- The fee for sending large payments via CHAPS (Clearing House Automated Payment System) will drop from £20 to £15.
- The charge for transferring money from overseas accounts to the UK will also be reduced from £20 to £15.
These reductions will primarily benefit customers making large payments, such as property transactions, high-value purchases, or business-related transfers.
Closure of Dormant Accounts
Starting May 1, 2024, Nationwide will begin closing current accounts that have been inactive for 15 years. However, affected customers will be notified in advance and given the option to reactivate their account or withdraw their funds.
- If an account is closed, any remaining balance will be transferred to charity—but only in cases where the amount left is small (a few pence or pounds).
- Customers will still have the right to request a refund of their balance after closure.
Nationwide has reassured customers that account closures will be rare, mainly affecting individuals who no longer use their Nationwide accounts and have not engaged with them for over a decade.
What This Means for Nationwide Customers
These changes reflect broader shifts in banking policy, aimed at improving fraud prevention, compliance, and customer convenience. However, customers should be aware of the new deposit limits and fraud reimbursement rules, as these could impact how they manage their money.
Nationwide account holders are encouraged to:
- Check their fraud protection eligibility and report any scams as soon as possible.
- Review their deposit habits to ensure they stay within any new transaction limits.
- Plan large transfers in advance to take advantage of the reduced CHAPS fees.
- Verify if they have any dormant accounts that could be closed.
With these updates rolling out over the next 14 months, Nationwide customers should stay informed and prepared for the changes to ensure they continue to manage their finances smoothly.
