Shop around says bank

Monday, August 15, 2005

UK consumers with big five banks are wasting around £500 million by failing to shop around for personal loans, new research reveals.

Nationwide is now offering customers who switch their personal loan from Barclays, Lloyds TSB, NatWest, Royal Bank of Scotland, HSBC, Halifax and Bank of Scotland between August 15th and September 30th this year the company’s best-ever rate of 6.7 per cent and a cheque for £50.

The building society is actively encouraging consumers to contact them to see just how much they could save on their monthly loan repayments and insists that new personal loan customers and customers with loans held outside of the big five banks can also benefit from its rates.

Nationwide claims that personal loan customers tend to remain with one provider for the life of the loan, unlike credit cards and current accounts, paying out hundreds of pounds in higher interest rate charges.

Steve Clode, marketing director of Nationwide, said: "There has never been a better time to request a Nationwide personal loan. Not only will consumers benefit from our one extremely competitive rate of 6.7 per cent, which is available to everyone, but if they are currently with one of the big 5 banks they will also be given £50 for their trouble. This really is a question of "money for nothing"!"