Not upheld: interest calculation and account communication during migration exercise complaint against Nationwide Building Society

Decision detail

Summary

Mr L complained that Nationwide incorrectly applied interest to his ISA following a migration exercise in February 2025. He believed the early interest payment meant the anniversary date had moved from September to February, but Nationwide paid interest again in September 2025. Mr L also claimed withdrawals affected his interest rate and requested compensation for lost interest. Nationwide explained the February payment was a one-off adjustment and that the anniversary remained September, and that it had communicated these changes through letters and updated terms. The ombudsman found Nationwide had fulfilled its communication responsibilities and made no mistake, noting that Mr L had reasonable opportunities to verify the information through multiple channels but failed to do so.

The Ombudsman's reasoning

Nationwide fulfilled its regulatory responsibility to communicate account changes through letters and updated terms and conditions. The ombudsman found that the February 2025 interest payment was clearly explained as a one-off adjustment to avoid Mr L waiting more than 12 months for interest. The anniversary date remained September throughout. While sympathising with Mr L's confusion, the ombudsman concluded that Nationwide had not made a mistake and that Mr L had reasonable opportunities to verify the information through letters, online banking, the app, or by contacting Nationwide. There was no obligation on Nationwide to foresee Mr L's confusion without him taking steps to clarify the situation.

How this compares

Source

Read the original decision on the Financial Ombudsman Service website