Nationwide to pay £340m of profits directly into customers’ accounts

The first comes as jump in deposits and interest rates drives earnings up 40% to record highs

Nationwide will pay 340m directly into customer accounts for the first time, after a jump in deposits and higher interest rates drove annual profits up 40% to record highs.

Britain's biggest building society has tended to use profits to offer better rates on savings, loans and mortgages for its members but on Friday it launched an inaugural programme that will distribute funds directly to customers, akin to shareholder payouts made by banks.