Nationwide bank accounts to curb counter withdrawals

Nationwide Building Society has revealed plans that will prevent some customers withdrawing less smaller amounts of money at its branches over the counter.

From 7 June Nationwide bank account customers issued with a cash card who want to take out less than £100 will no longer be able to do so over the counter, leaving them to use cash machines or the cashback facility instead.

According to the Nationwide, the new change will not affect customers with debit cards, or those that still use a passbook.

Nationwide said the change is required to reduce queues in its branches and highlighted that there were several alternatives for those affected.

But there are concerns that the move could affect the vulnerable. Mike Ivatt, from Kent said that his 83-year-old father does not feel comfortable with having to withdraw cash in the street and may have problems remembering his PIN. This could lead to many customers being unable to continue managing their own financial transactions.

He argued that the service offered to elderly people at the counter was “excellent," and that "Older people need that service."

"Building societies were established to look after their members and it's a sad indictment when a large proportion of those members are going to have to hand over the running of their accounts to other people," Mr he added.

Graeme Hughes, divisional director Nationwide's branch network, said that the change was essential.

"About a third of all counter transactions are carried out by less than 8% of our customer base," he said.

"And the other 92% say 'what can you do to speed up the queues?' So what we're trying to do is to look at alternative ways of dealing with these customers."

He highlighted that customers could change bank accounts, or use cash machines.

"I do recognise that for some customers, what we're asking them to do won't be particularly good for them," he said.

"What we are looking to do is help them use the cash machines, so we are giving them two months notice so that we can talk to customers to help them."

However, Nationwide will also be forcing another set customers to queue up and deal with some transactions in-branch.

It is withdrawing the use of FAST/Selfserve machines – used to manually pay-in cheques of more than £1,000 - the current limit is £10,000. The building society claimed that this was due to the increase in risks relating to fraudulent activity on larger cheques. It is hoped the new limits will make it less likely for counterfeit checks to go unnoticed.

The Nationwide has produced a leaflet to explain the change, which says it will "fight fraud as well as giving you the opportunity to talk to one of our consultants to try to help you get the most from your money".

Nationwide will also be introducing a £10 charge for drafts of less than £1,000 obtained at the counter, and the same charge for stopping a cheque.

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