According to The Times article here (paywall, free reg required to read) Nationwide UK (Ireland) is set to shut down.
- 14,000 customers effected.
- Official notification will occur on 25 April 2017.
- As good as confirmed: "Following a thorough review, the society is proposing to close its Nationwide UK Ireland operation as it focuses on its core purpose of building society, nationwide. This was not an easy decision and our priority now is to the employees and customers of Nationwide UK Ireland who we will keep fully informed."
Open questions:
- What happens to those that have term deposits that have not yet matured?
- When and how will deposit holders be compensated?
The reason why Nationwide UK (Ireland) had an Irish base was always puzzling. The original reason was apparently to get access to cheap ECB funding but Nationwide UK no longer needs this funding.
One would expect that deposits would be paid back in full, even those over the deposit insurance level. Nationwide UK (Ireland) should urgently release a statement confirming this.
The decision does not bode well for the future of other small deposit operators like Investec, Leeds and Rabo.
Nationwide UK (Ireland) joins a long list of deposit taker brands that have disappeared since 2008:
- Nationwide Building Society
- Northern Rock (Ireland)
- First Active
- Anglo Irish / IRBC
- Halifax / Bank of Scotland Ireland
- National Irish Bank / Danske
- PostBank
- ACCBank
- ICS
I will remove Nationwide UK (Ireland) from the best buys.
- 14,000 customers effected.
- Official notification will occur on 25 April 2017.
- As good as confirmed: "Following a thorough review, the society is proposing to close its Nationwide UK Ireland operation as it focuses on its core purpose of building society, nationwide. This was not an easy decision and our priority now is to the employees and customers of Nationwide UK Ireland who we will keep fully informed."
Open questions:
- What happens to those that have term deposits that have not yet matured?
- When and how will deposit holders be compensated?
The reason why Nationwide UK (Ireland) had an Irish base was always puzzling. The original reason was apparently to get access to cheap ECB funding but Nationwide UK no longer needs this funding.
One would expect that deposits would be paid back in full, even those over the deposit insurance level. Nationwide UK (Ireland) should urgently release a statement confirming this.
The decision does not bode well for the future of other small deposit operators like Investec, Leeds and Rabo.
Nationwide UK (Ireland) joins a long list of deposit taker brands that have disappeared since 2008:
- Nationwide Building Society
- Northern Rock (Ireland)
- First Active
- Anglo Irish / IRBC
- Halifax / Bank of Scotland Ireland
- National Irish Bank / Danske
- PostBank
- ACCBank
- ICS
I will remove Nationwide UK (Ireland) from the best buys.
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