Millions of Nationwide customers will receive a £100 payment after the building society launched a new reward scheme for its most loyal savers.

Around 3.4 million Nationwide Building Society members will benefit from the windfall, which will cost the lender £340m.

Payments will be sent out automatically to those holding both a Nationwide qualifying current account and either a savings product or mortgage in June, assuming they held them on March 31 this year.

It comes after the lender reported its strongest financial results on record.

The building society’s underlying pre-tax profit surged to £2.2bn in the year to April, from £1.6bn this time last year.

Its total underlying income jumped to £4.7bn from £3.9bn the previous year as it was boosted by surging interest rates.

Nationwide members will find out if they will receive the payment from today.