Information about Nationwide Anglia Building Society

Nationwide Building Society
	Building Society (Mutual)
Founded	1884
Headquarters	Swindon, England, UK
Key people	Geoffrey Howe, Chairman Graham Beale, Chief Executive
Industry	Banking and Financial Services
Products	Retail banking, Savings Mortgages, Investments, Insurance, Current accounts, Loans, Car insurance, Home insurance, Travel insurance, Bureau de change
Revenue	£1.93 billion GBP (April 2007)
Employees	19,000
Website	nationwide.co.uk

Nationwide Building Society is a major UK building society, the largest one in the world, and has its headquarters in Swindon, Wiltshire. It has approximately 13 million members, 20 million accounts and employs 19,000 people across the UK. It is the only UK building society to clear its own cheques, and the only UK financial institution to offer completely fee-free transactions (both electronic and cash withdrawals) worldwide with their VISA branded debit cards.

Nationwide Building Society provides financial services both directly, and through approximately 680 branches and 200 agencies. Nationwide is a major provider of both mortgages and savings in the UK, as well as personal banking and commercial lending.

The Society's dual origins lie in Northampton (1848) and within the co-operative movement in London (1883) respectively. Over a hundred mergers later — most notably the merger between the Nationwide and the Anglia Building Societies in 1987 — they are now the UK's second largest mortgage lender and savings provider. More significantly, it is the largest building society in the world and committed to staying mutual. The company is keen to emphasise that it does not have "shareholders", it has "members".

On 12th September 2006 the Society announced plans to merge with Portman Building Society, creating a mutual body with assets of more than £160bn. This merger completed successfully on 28th August 2007.

History

• 2007
• 28 August 2007 - Nationwide successfully completes merger of the former Portman Building Society
• 23 April 2007 - Portman Building Society AGM, members vote in favour of the proposed merger between Portman Building Society and Nationwide Building Society.
• 18 April 2007 - Nationwide re-launches its sponsorship of the UK's four national football teams with its 'Sponsored by you' campaign.
• 1 April 2007 - Graham Beale takes over as Chief Executive following the retirement of Philip Williamson.
• Ranked 9th in the Best Big Companies to Work For list produced by The Sunday Times.
• Announced a deal with Legal & General to market their life insurance products and sell Nationwide's bancassurance arm, Nationwide Investment Group, to L&G.
• Fined £980,000 by the Financial Services Authority after an enquiry into the theft of an employee's laptop exposed security flaws.^[1] On 20th February 2007 it was reported that this fine would be paid by Nationwide's members rather than by the directors who were directly accountable.^[2]
• 2006
• Experienced a security breach that potentially compromised the personal information of members after a company laptop computer was stolen from an employee's home during a burglary in August 2006.^[3] However, no customers have lost any money as a result.^[4]
• Announced proposed merger with Portman Building Society and named Graham Beale (Group Finance Director) as Chief Executive Designate of the Society, taking over on 1 April 2007.
• Sold at.home Nationwide to ARIM Ltd, which rebranded the business to Uk Home Lets^[5].
• Ranked 3rd in the Best Big Companies to Work For list produced by The Sunday Times.
• Assets at a record £120.6bn for the year ended 4 April 2006. Pre-tax profits of £539.4 million.^[6]
• 2005
• Ranked 1st in the Best Big Companies to Work For list produced by The Sunday Times and the Department of Trade and Industry.
• 2004
• Total assets of the Nationwide Building Society exceed £100 billion (£100,000 million), strengthening its status as the largest building society in the world - a position which it has held since 1997. Its asset size placed it as the 7th largest financial organisation on the UK high street.
• Nationwide overtakes the clearing bank Barclays to become Britain's fourth largest mortgage lender, with more than 1 million mortgage customers.
• Savings balances of Nationwide Building Society members, more than £65 billion (£65,000 million) in total, position Nationwide as the third largest savings provider in the UK.

• 2001
• Society Carpetbaggers propose a resolution for another vote by Nationwide members to convert the society to a bank. The resolution is rejected by the Nationwide board on legal grounds.
• 2000
• Cash machine surcharge campaigning in 1999 results in withdrawals from most cash machines owned by UK banks becoming free for customers of all banks and building societies throughout the UK.
• 1999
• Nationwide Building Society, together with various UK tabloid newspapers and media, launches a campaign against controversial cash machine fees. The campaign reaches a peak when Barclays Bank announces a plan to charge all customers of rival banks and financial providers, including those of Nationwide, £1 for every cash machine withdrawal made from a Barclays-owned cash machine. This prompts Nationwide Building Society to warn Barclays that it would take legal action against the bank if it did not back down. Nationwide claims Barclays has broken the rules of the LINK network of cash machines, which the bank had joined earlier the same year.
• 1998
• Society members seeking a windfall, branded as Carpetbaggers by the UK media, meant Nationwide members go to vote on whether to demutualise the society and float on the London Stock Exchange. The attempt fails, despite media reports of possible pay-outs to members of around £1,000 to £1,500 each, as Nationwide members vote by a narrow margin of 33,700 against converting the building society into a bank.^[7]
• At its Swindon headquarters, Nationwide pilots the use of iris recognition in cash machines. This project was since cancelled due to it not being cost effective.^[8]
• 1997
• Launches the UK’s first internet banking service on 27 May 1997.^[9]
• 1991
• The first Visa/Delta debit card in the world from a Building Society is launched by Nationwide. Barclays, TSB and Lloyds Bank had already been providing them, but they were banks.
• 1987
• Merger of the Nationwide and Anglia Building Society. The new society is known as Nationwide Anglia Building Society at first, but the word Anglia is dropped in 1992. The merger also results in the now-familiar Nationwide logo.
• 1970
• The Co-operative Permanent Building Society changes its name to Nationwide Building Society. The name was suggested by the then chairman, Leonard Williams, and borrowed from the BBC current affairs programme, Nationwide.

Sponsorships

The company is the former title sponsor of the Football League and current title sponsor of the Football Conference, the top level of the National League System, which governs competition in English football below the Premiership and Football League. It also sponsors the FA Women's Premier League, the top flight in English women's football. Individually, Nationwide sponsors a football league team: Northampton Town FC (Nationwide has offices in this town). Nationwide were former sponsors of Swindon Town FC until 2007 when the contract was terminated. Nationwide has offices in Swindon. The company is also the sponsor of the Nationwide Mercury Music Prize.

Nationwide currently sponsors all four national football teams of the United Kingdom: England, Wales, Scotland and Northern Ireland. To differentiate itself from the tried and tested method of sponsorship by plc companies, Nationwide is demonstrating its mutual status with a 'Sponsored by you' campaign aimed at giving the benefits of sponsorship back to the membership as well as having members’ names appear on shirts and signage etc.

• Nationwide Mercurys
• Sponsored by you

Subsidiaries

Nationwide wholly owns several subsidiary companies, including:

• The Mortgage Works plc

Mortgage provider of Buy to Let, Self Certification, Sub Prime & 100% Mortgages

• Nationwide Life Limited

Provides life assurance.

• Nationwide Unit Trust Managers Ltd.

A company offering unit trusts, equity ISAs and Stakeholder Pensions.

• UCB Home Loans Corporation Ltd.

Provides specialist mortgage finance, particularly for the self-employed. One of the UK's largest centralised mortgage lenders.

• Nationwide International Ltd.

Based in Douglas on the Isle of Man, Nationwide International provides a range of offshore savings accounts denominated in Euro, Pounds Sterling and US Dollar. The accounts are designed for British expatriates but are suitable for a variety of purposes.

• Nationwide Mortgage Corporation Ltd.

Acquires and administers commercial mortgage portfolios acquired from third parties.

• Nationwide Syndications Limited

Arranges and participates in syndicated loans to Registered Housing Associations.

• Nationwide Trust Limited

Provides a complete personal loan service.

• Foundation Insurance Limited

Isle of Man based captive insurer.

• Nationwide Investments (No.1) Ltd.

An investment company.

• Monument (Sutton) Limited

A commercial property rental company.

• First Nationwide

An investment company.

Interest Calculations

At Nationwide, current and savings accounts interest are calculated based number of days the money stays in the account. Here are some items to note about the calculations:

• Interest is paid out at different times of the year for different accounts.
• All transactions are calculated on whole pounds (rounded down) except for where otherwise stated.

Projection

The projection (projected interest) is how much money a member will be paid at the end of the year. This does not take any interest rate changes, capitalisation (interest payout) or deposits/withdrawals into account.



If it is easier to calculate on the 1st of the month, use .

Here is a projection for £10000, at 3.5% at the beginning of December, if it was paid out at the end of the month.

Interest Rate Change

When the interest rate changes, the projection has to be recalculated, because the interest being paid out will change. The calculation is done on the number of months in the year, as the Bank Of England's changes take place on the first of the month.



If you have £10000 in your account, and the interest rate changes from 3.5% to 3% in November, you calculate the difference:



Therefore, with a drop of 0.5%, you will lose out on £8.33 for the final 2 months.

Capitalisation

Capitalisation is the term used to describe when interest is paid to the customer. Capitalisation occurs at different times of the year depending on what type of account you have. The amount paid may also be reduced due to taxation.

Nationwide offer 2 methods of interest payment. One method is to have it paid directly into the same account or another account internal to Nationwide. The other method is to have the money paid into a different account with a different bank/building society.. This choice is available as long term accounts may penalise you for withdrawing the money. This way, the interest earned is immediately available to you when it is paid.

Since the BACS system processes in an approximate 5 working day week, externally paid interest is sent on 23rd (or nearest to), in order to reach the destination bank account by the time the interest is due.

Capitalisation occurs in the following steps:

1. Calculate the interest received from the capitalisation date until the end of the year.
2. Take this away from the interest currently earned.
3. If the customer can claim
4. Tax free interest - pay the full amount to the customer.
5. Partner interest (joint accounts) - pay 90% of the interest to the customer.
6. Net Interest - pay 80% of the interest to the customer.
7. If the interest is paid
8. internally (either to the same account or another internal account), pay on the capitalisation date.
9. to an external account, pay it on the 23rd of the month, or nearest working day.

The interest paid to the customer is for the whole period, even though they are paid 7 days early. Any closure within this period will create negative interest. If a customer closed early (before the end of the month but after the interest had been paid), the negative interest would be claimed back upon closure.

Worked Example

Date	Description	Amount	New Int Rate	Old Int Rate	New Balance	Proj Interest	Transaction Description
21/02/2007	Bank Credit	£10000	3.50%		£10000	£300.14	£10000 × 3.50% × ( 313 / 365 ) = £300.14
01/05/2007	Interest Rate Change		3.00%	3.50%	£10000	-£33.42	£10000 × (3.00% - 3.50% ) × ( 244 / 365 ) = -£33.42
12/08/2007	Bank Credit	£50000	3.00%		£60000	£579.45	£50000 × 3.00% × ( 141 / 365 ) = £579.45
01/12/2007	Withdrawal	-£20000	3.00%		£40000	-£49.32	-£20000 × 3.00% × ( 30 / 365 ) = -£49.32
31/12/2007	Total Interest					£796.85	(£300.14 + -£33.42 + £579.45 + -£49.32) = £796.85
	Net Interest					£637.48	(£796.85 × 80%) = £637.48
	Total Capitalisation	£637.48			£40637.48	£0.00	£40000 + £637.48 = £40637.48

References

See also

• UCB Home Loans Corporation Ltd
• Nationwide International Ltd

External links

• Nationwide Building Society
• Nationwide International Ltd.
• Sponsored By You
• Reviews at DooYoo
• Reviews at Ciao!

Video clips

• Brand new customers only (2005) - Directed by Armando Iannucci featuring Mark Benton (Leagas Deleaney)

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