From Thursday 2 April, Nationwide and Virgin Money will merge banking licences and as a result, you may need to move some savings to avoid tipping over the Financial Services Compensation limit.

Nationwide bought Virgin Money in October 2024 and is combining both businesses so your money will end up under Nationwide for compensation, now capped at £120,000.

Virgin generally pays better rates. For example, it has just hiked its one-year fixed rate Isa rate to 4.22 per cent while Nationwide pays 4.05 per cent.

On easy access accounts Virgin Money pays 4.15 per cent on its Double Take E-Isa (which allows up to two withdrawals a year) while at Nationwide it’s 4 per cent on its 1 Year Single Access Isa and allows one withdrawal.

But I would hold off moving any money from Nationwide to Virgin for the time being.

First, the difference in the rates on accounts is not as wide as with other high street providers. 

And Nationwide is due to announce its Fairer Share scheme (if any) for 2026 along with its annual results in May.

You need to leave sufficient money in easy-access accounts along with your current account at Nationwide to make sure you qualify for any payout.

Last June it handed out £100 to those who qualified for the third year in a row. A toal £400million was paid to 4million members, up from £385million the year before. 

To qualify, members typically need a qualifying active Nationwide current account, plus either a qualifying Nationwide savings account, or cash Isa - or a Nationwide mortgage.

In the last three years, customers needed to have had at least £100 in a Nationwide savings account or a cash Isa, or £100 left on a Nationwide mortgage at the end of any day in March.

Even with the full £20,000 cash allowance you could lose out.

It will earn you £860 with Virgin Money and £800 with Nationwide on their easy access cash Isas (assuming you don’t breach your withdrawal allowance and rates stay the same) so you could be better off ensuring you get any Fairer Share payment.