Nationwide explains why it's sending out £50 cheques due to 'HMRC rules'

Nationwide Building Society has provided an update on £50 cheques going out to some members. The group is paying out a £50 thank you payment to millions of its customers.

The way you receive the cash depends on what type of customer you are, as some people will get the funds paid directly into their account while others will receive a cheque. However, this has caused some confusion for members.

One person asked Nationwide on social media: "Daughter has a junior ISA and received £50 from you. Surely this could have been paid straight into her account?

READ MORE:

READ MORE:

"I don't know where her passbook is, so how can I pay in? I have online banking for it." In response, Nationwide said the reason these customers were being paid in this way was due to HMRC rules.

The group said: "Due to the HMRC limitations of these accounts the funds are sent as a cheque. You can deposit this into the account at your nearest branch without the passbook."

You can save up to £9,000 into a Junior ISA each tax year. The child must be aged 18 or under and be a UK resident to open one. The advantage of ISAs is they are tax-free, with no tax to pay on any interest earnings or investment growth within an ISA.

Who qualifies for the £50 Nationwide thank you payment?

To qualify for the £50 payment, a person must have been a Nationwide member on September 30, 2024, and still be a customer when the payment goes out.

Other important eligibility rules include that in the 12 months to the end of September 2024, you must have had either:

• At least one qualifying transaction on your Nationwide current account or savings account, or
• At least £100 in total in one or more of your Nationwide current accounts and savings accounts, or
• Owed at least £100 in total on one or more Nationwide residential mortgages.

As regards how the payment will be made, people with a Nationwide current account, instant access or limited access savings account in their name, will get the funds be paid into one of these accounts, by April 30.

If not and if you are a mortgage customer with Nationwide, you'll receive the cash paid into the account used to pay your mortgage direct debit, also by April 30.

All other payments will go out as a cheque and will be sent out by May 14. The cheques must be paid in by January 1, 2026, to make sure you don't miss out on the payment.