Nationwide customers to get £50 each after Virgin deal

Nationwide, the UK's largest building society, will pay £50 to each of its over 12 million customers following its acquisition of Virgin Money. Nationwide describes this £600 million payout as a "thank you" to its members, recognizing their contribution to the society's success.

However, critics have pointed out that Nationwide members did not receive a vote on the acquisition of Virgin Money last year, a deal valued at £2.8 billion. Most eligible customers will receive the £50 payment directly by the end of April, while some will receive it via cheque.

Nationwide is currently sending out notifications to eligible members, informing them about how and when they will receive the payment. To qualify, customers must have held a savings or current account, or a mortgage, as of the end of last September, and have made at least one transaction on their current or savings account in the 12 months leading up to that date, or held a balance of at least £100 across their current account, savings account, or mortgage. These criteria mean that approximately 4 million customers will not receive the payment, and Virgin Money customers (formerly Clydesdale Bank and Yorkshire Bank) are also ineligible.

Nationwide Chief Executive Debbie Crosbie stated that the payment "recognizes the role members play in building our financial strength, which made the transaction possible." Last year's deal made Nationwide the UK's second-largest provider of mortgages and savings accounts and was the largest banking takeover since the financial crisis. However, while Virgin Money members had a vote on the deal, Nationwide members did not, sparking some controversy as the Nationwide board felt member approval was not required.

This £50 payment is separate from Nationwide's "Fairer Share Payment scheme," which periodically returns a portion of profits to members. The scheme aims to further reward members and reflect Nationwide's mutual status, reinforcing its commitment to shared prosperity.