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“Would not give 1 star ”

Written on: 09/11/2010

Would not give 1 star

Check your interest & Tax on statements



Ex Portman members. We have two joint account fixed rate bonds with Nationwide, a one year and a two year. Form R85 was in place when the bonds were set up and money transferred into the account as my wife is not a taxpayer. Nationwide failed to take account of this initially.



The maturity account did not reflect the correct interest at the contracted rates on the one year bond. The two year bond maturity was similarly incorrect.



When challenged they sent a complex calculation ignoring the fact that on a one year bond at maturity the rate is applied to the capital then tax applied. We found that they were applying 50% of my tax rate to the joint total interest. On this bond it should have made no difference but there was a discrepancy.



The two year bond interest and tax calculation at the end of the first year were also incorrect and the difference was even greater at the end of year two. We did spreadsheets applying my tax at the correct rate to the correct interest for one two and three years to see what happened.



The error became greater year by year. We found you cannot apply half the tax rate to the whole account instead of the correct rate to half the sum as the compounding works differently on the tax free part. Any bond of more than one year will always underpay interest using their method and this affects all customers!



After repeated passing around to different Customer Services Managers (how many are there?) we got the following reply "I feel there is no need to justify our calculations or indeed pass comment upon those supplied by you."



Thank you Nationwide staff, our employees! You do not give a damn. As members of a mutual we can all be personally responsible for financial mistakes you make (shades of Equitable Life) we should all get our money out now. Do not get us going on ISA's. The service we receive is atrocious.

Ex Portman members. We have two joint account fixed rate bonds with Nationwide, a one year and a two year. Form R85 was in place when the bonds were set up and money transferred into the account as my wife is not a taxpayer. Nationwide failed to take account of this initially.



The maturity account did not reflect the correct interest at the contracted rates on the one year bond. The two year bond maturity was similarly incorrect.



When challenged they sent a complex calculation ignoring the fact that on a one year bond at maturity the rate is applied to the capital then tax applied. We found that they were applying 50% of my tax rate to the joint total interest. On this bond it should have made no difference but there was a discrepancy.



The two year bond interest and tax calculation at the end of the first year were also incorrect and the difference was even greater at the end of year two. We did spreadsheets applying my tax at the correct rate to the correct interest for one two and three years to see what happened.



The error became greater year by year. We found you cannot apply half the tax rate to the whole account instead of the correct rate to half the sum as the compounding works differently on the tax free part. Any bond of more than one year will always underpay interest using their method and this affects all customers!



After repeated passing around to different Customer Services Managers (how many are there?) we got the following reply "I feel there is no need to justify our calculations or indeed pass comment upon those supplied by you."



Thank you Nationwide staff, our employees! You do not give a damn. As members of a mutual we can all be personally responsible for financial mistakes you make (shades of Equitable Life) we should all get our money out now. Do not get us going on ISA's. The service we receive is atrocious.