Major UK bank to give out free £100 bonus to millions of customers

Nationwide is paying out a total of £400 million to four million of their customers

Only current account customers, who also have savings and a mortgage with Nationwide, are eligible.

These bonus payments are being paid out after the building society announced profits of £2.3 billion.

Last year the bank paid out £385 million to 3.85 million customers, and this will be the third year in a row Nationwide will share their profits with their loyal customers.

Unfortunately, not all Nationwide customers will get a bonus.

Firstly, you must have had an open Nationwide current account on 31 March 2025.

Next, you must have used your current account for the first three months of the year.

And, finally, you must have had at least £100 in savings at Nationwide at the end of any day in March 2025, or owed at least £100 on a Nationwide mortgage on 31 March 2025.

All customers who are eligible for a payout will receive an email or letter by Friday 30 May. However, you can also log onto your online banking and use Nationwide's eligibility tracker or even ask the live chat for help.

The money will be paid directly into your Nationwide account between Wednesday 18 June and Friday 4 July along with the statement 'Nationwide Fairer Share Payment'.

The £100 payment is taxable savings income, which will be treated in the same way as any interest you earn on your savings account or current account.

Most people do not have to pay any tax on the reward, due to the personal savings allowance that grants basic-rate taxpayers to earn up to £1,000 a year from savings tax-free.

However, if you're a higher-rate taxpayer and you have a considerable amount in non-ISA savings, you might not be as lucky and may have to pay tax on the bonus.

Nationwide will report the bonus to HMRC automatically for you, so no need to do anything yourself.

Independent contractors, or anyone who has to file self-assessment returns to pay their taxes each year, will need to include this payment in their tax return.

Concerning Universal Credit entitlement, the £100 would be treated as 'capital' (savings), according to the Department for Work and Pensions.

In agreement with Universal Credit rules, you can have up to £6,000 in savings or other capital without this affecting your eligibility for benefits. So, naturally, you would only need to report the £100 if the bonus has taken you over the £6,000 total limit.