Nationwide will pay out £340m to customers after reporting a 40% increase in annual profit.
The building society said that eligible members who hold both a qualifying current account and a qualifying savings or mortgage product will receive a £100 cash reward in June.
“We are able to do this because of our financial strength and the fact we’re a building society, not a bank, so our profit is used for our members’ benefit,” said Nationwide chief executive Debbie Crosbie.
Similar distributions are planned to be made annually, subject to the financial strength of the business each year.
Alongside the £100 Fairer Share Payment, Nationwide is also offering a new Fairer Share Bond with an interest rate of 4.75%. Available to its 16 million members, the two-year bond can be opened in branch or via the building society’s banking app or online banking facility.
Nationwide recorded pre-tax profit of £2.2bn in the year to 4 April 2023, up from £1.6bn in the previous 12 months.
In its strongest year to date, Nationwide said that it returned a record of more than £1bn to members through better rates and incentives.
