People taking out personal loans with the big five banks might be paying £500 million too much because they fail to shop around, Nationwide claims.
Because of this, Nationwide now offers those holding personal loans from Barclays, Lloyds TSB, NatWest, Royal Bank of Scotland, HSBC, Halifax and Bank of Scotland an extra incentive to switch their personal loan to Nationwide.
If any of these banks' personal loan holders choose to switch their personal loan to Nationwide between August 15th and September 30th, they could receive a cheque of £50 for their effort.
And the personal loan provider is convinced that the customers that switch to Nationwide will save money, as they will also benefit from the personal loan provider's lowest ever interest rate of 6.7 per cent.
Unlike credit cards and current savings accounts, personal loan customers tend to remain with one provider for the life of the personal loan, noted Nationwide's marketing director Steve Clode.
He said that this often means that personal loan customers are losing hundreds of pounds through paying higher interest rates than they need to.
"New personal loan customers and customers with loans held outside of the big 5 banks can benefit too," Mr Clode commented. "On a loan of £5,000 over three years borrowers could save up to £720 over the life of the loan when compared to other providers."






Paying Too Much?