Nationwide says it has already made payments to more than four million eligible members on the first day of the scheme, with a total of around £440 million being distributed.
The £100 payments started today, June 10, and Nationwide says it has until June 30 to complete all transfers.
Many customers have reported already receiving the payment into their accounts.
Who is eligible for the £100 Fairer Share payment?
To qualify, members must use Nationwide for everyday banking and also hold certain savings or mortgage products.
The Fairer Share payment has been running since 2023 and is designed to reward members when the building society is in a strong financial position.
Nationwide’s retail director, Stephen Noakes, said: “We’ve made strong progress with this year’s Fairer Share payment, surpassing four million payments on the first day.
“We’re pleased to be able to reward eligible members with £100 for the fourth consecutive year.”
Important tax warning for some members
While many customers will receive the payment tax-free, Nationwide has warned that some people could face a tax bill depending on their total savings interest for the year.
The building society says the Fairer Share payment is treated as interest for UK income tax purposes.
That means it could count towards your Personal Savings Allowance (PSA):
If your total savings interest goes above your allowance, you may need to pay income tax on the excess.
Nationwide said it will not deduct tax from the £100 payment, but it will report the payment to HMRC.
Key dates to know
What should you do next?
The society added that anyone unsure about their position should seek independent tax advice.
For millions of members, the £100 payment will be a welcome boost during a period of rising household costs.
But the tax warning means some savers, particularly higher-rate taxpayers or those with large savings balances, may need to keep a closer eye on their annual interest totals.
