Nationwide flexdirect 5% interest /£2500 balance
505°Expired

Nationwide flexdirect 5% interest /£2500 balance

110
Found 1st Mar 2013
Guys this is my first post, hope I get it right.

5% AER/4.89% gross p.a. for in credit balances up to £2,500 (fixed for the first 12 months), if you pay in £1000 per month1
Fee-free overdraft for 12 months2
No monthly fee
Access to special rates and exclusive products

You cana make £100 in 1 year

On balances over £2,500 - 0.00%
- csiman

In plain English this means, you'll earn interest on the first £2,500 of your balance each month but you won't get any interest on any part of your balance over £2,500.
- mysticjenny

For those thinking about opening this account it might pay to hold off for a few days ;-)
SEE forums.moneysavingexpert.com/sho…=36
- exel1966

110 Comments

Nationwide is an excellent, reliable, safe Building Society, I recommend.

Banned

good building society but account only suitable for those depositing £2,500 initially and then depositing £1000 every month and withdrawing it immediately and keep repeating this.

they wont gove me a credit card!!!!!

and for that i love them!!!!!

csiman

good building society but account only suitable for those depositing … good building society but account only suitable for those depositing £2,500 initially and then depositing £1000 every month and withdrawing it immediately and keep repeating this.



It's not a savings account. It's bank account? So put in £2,500 initially in first month. Then £1,000+ in month 2. Transfer the difference to ISA. You're still earning 5% on £2,500 which is quite nice.

Looks good, thanks op.

matedodgy

It's not a savings account. It's bank account? So put in £2,500 … It's not a savings account. It's bank account? So put in £2,500 initially in first month. Then £1,000+ in month 2. Transfer the difference to ISA. You're still earning 5% on £2,500 which is quite nice.



Or transfer the money over 1k to halifax rewards, another £5 a month, then into some sort of ISA or online saver.

Thanks - upgraded my FlexAccount.
They tell me the upgrade will happen over the weekend of March 23rd.

nice interest rate but a paltry amount you can actually earn interest on...at the end of 12 months, it's still only 125.00 gross and you can top that at halifax with their 100.00 introudctory bonus plus a fiver each month for topping up with 1k.

if you only want accounts to load with spare cash (and you have more) then santander will give you 3% on 20k on roughtly the same deal... lloydstsb will give you 3%on 5k and you can have 3 current accounts.

i'm not personally bragging, just know what's on offer.
Edited by: "marineville" 1st Mar 2013

marineville

nice interest rate but a paltry amount you can actually earn interest … nice interest rate but a paltry amount you can actually earn interest on...at the end of 12 months, it's still only 125.00 gross and you can top that at halifax with their 100.00 introudctory bonus plus a fiver each month for topping up with 1k. if you only want accounts to load with spare cash (and you have more) then santander will give you 3% on 20k on roughtly the same deal... lloydstsb will give you 3%on 5k and you can have 3 current accounts. i'm not personally bragging, just know what's on offer.



if you have 20k to put in, you should put 2500 in this, then the rest elsewhere, banks dont check if you have multiple 'main' accounts

Banned

sellsmart123

if you have 20k to put in, you should put 2500 in this, then the rest … if you have 20k to put in, you should put 2500 in this, then the rest elsewhere, banks dont check if you have multiple 'main' accounts


Is it really worth all the hassle for 2% difference

About £40 net per year

those who want to switch from flexi account. it does not cover Free European multi-trip travel insurance.

Note that the 5% is only for the first year - it then reverts to 1% gross:

"We'll pay you 5.00% AER (4.89% gross p.a.) interest on your in-credit balance up to £2,500.
The rate is fixed for the first 12 months and reverts to 1.00% gross p.a./AER (variable) as long as you keep paying in £1,000 per month"


Just saying as I initally interpreted the "fixed for one year" as meaning that it may or may not remain at that rate after 12months.

I have 3 accounts:

- Nationwide Flexaccount (free travel insurance - pay in salary);
- Santander 123 (cash back on bills - transfer money from Flexaccount);
- Nationwide Flexdirect (5% interest - transfer money from Santander 123).

So really you stick £2500 into Nationwide, get 5%. Month 2 pay £1000 into this account. Transfer the £1000 into the Halifax to get £5 reward and then send it to the Santander 123 account to pay your bills.

I get about £7 a month on my 123 account, less the £2 per month charge. I'd get more if I kept a decent balance in it.

Hunt4deal

those who want to switch from flexi account. it does not cover Free … those who want to switch from flexi account. it does not cover Free European multi-trip travel insurance.



Agreed, I looked into it and decided against, as after 12 months your stuckj with it and dont have any travel cover + the overdraft fees are far more unreasonable if you only ever use it occasionally for very small sums!

sellsmart123

banks dont check if you have multiple 'main' accounts



Actually Halifax have wisened up a little. I got a letter through the other day warning me that since I didn't have any direct debits coming out of my reward account they would be converting it to a standard account. I think I've got until May to set a couple up, which I can do, but shows that Halifax at least are trying to make it a little harder to take advantage as you're suggesting.

Very tempted by this though. May have to arrange a banking trip into town to get this and a Santander 123 account...

Oneday77

So really you stick £2500 into Nationwide, get 5%. Month 2 pay £1000 into … So really you stick £2500 into Nationwide, get 5%. Month 2 pay £1000 into this account. Transfer the £1000 into the Halifax to get £5 reward and then send it to the Santander 123 account to pay your bills.



No need to wait a month - do it all on the same day!.
So £2500 in Nationwide, transfer £1000 to Halifax to get the £5, then transfer to Santander to pay bills.
Any left over in Santander, transfer back to Nationwide to get the higher interest again!

Thanks, have been looking to transfer to a more 'ethical' bank/building society from HBOS so will take advantage of this.

Northern_Dragon

Actually Halifax have wisened up a little. I got a letter through the … Actually Halifax have wisened up a little. I got a letter through the other day warning me that since I didn't have any direct debits coming out of my reward account they would be converting it to a standard account. I think I've got until May to set a couple up, which I can do, but shows that Halifax at least are trying to make it a little harder to take advantage as you're suggesting.Very tempted by this though. May have to arrange a banking trip into town to get this and a Santander 123 account...



I have three reward accounts and got the same. I just transferred two direct debits from my main account to each of the reward ones. As they are fixed DDs, it is simple to set up standing orders to shift the right amount of money from my current account to reward1, then into reward2, then into reward3, then back to my current account, leaving the right amount in each reward account to cover the DDs. I've been getting £15 per month since the reward accounts started. £180 interest yearly (that's after tax too) on about £2K balance in a current account is pretty good.

winstonmanc

I have three reward accounts and got the same. I just transferred two … I have three reward accounts and got the same. I just transferred two direct debits from my main account to each of the reward ones. As they are fixed DDs, it is simple to set up standing orders to shift the right amount of money from my current account to reward1, then into reward2, then into reward3, then back to my current account, leaving the right amount in each reward account to cover the DDs. I've been getting £15 per month since the reward accounts started. £180 interest yearly (that's after tax too) on about £2K balance in a current account is pretty good.




I phoned the other day Halifax Customer service and the customer service executive has confirmed they only accept 2 direct debits not stating orders to get £5

Nice offer for a year anyway....

Virtual Insanity

Thanks, have been looking to transfer to a more 'ethical' bank/building … Thanks, have been looking to transfer to a more 'ethical' bank/building society from HBOS so will take advantage of this.




Nationwide isn't any more ethical than the big banks, checkout how much salary/ bonus their directors cream off each year.

it's a lot of work for £100

What happens to the interest rate after 12 months?

Inactive

Nationwide isn't any more ethical than the big banks, checkout how much … Nationwide isn't any more ethical than the big banks, checkout how much salary/ bonus their directors cream off each year.



Of course they are more ethical. They are a mutual organisation with no shareholders, so exist for their members (us). Check out your.nationwide.co.uk/you…spx

just upgraded my Flex Account to this! Thanks ^_^

MarkShopper

Of course they are more ethical. They are a mutual organisation with no … Of course they are more ethical. They are a mutual organisation with no shareholders, so exist for their members (us). Check out http://your.nationwide.co.uk/your-society/inside-your-society/Pages/ethical-policies.aspx



You actually believe that biased crap?, you need to read up a bit more on them. yes I am a long term Nationwide Member, but there are far better Building Societies out there.

Great if you're a saver. But after 12 months, there is a 50p a day fee for arranged overdrafts.

Inactive

You actually believe that biased crap?, you need to read up a bit more on … You actually believe that biased crap?, you need to read up a bit more on them. yes I am a long term Nationwide Member, but there are far better Building Societies out there.



Well, I know it is true they have no shareholders to please (and make money for), and I have always been happy with the service they have provided me. There may be better building societies out there, but you were comparing to the big banks. I don't recall Nationwide needing a tax-payers' bail out like the banks!

Ah, it's just a deal to lure you in, then they Hoik it away. Just like they did with the much advertised free overseas cash withdrawals, now long gone.

Do you know what the 5% rate equates to after tax? Just so I can compare it against, say, a cash ISA?

Original Poster

applegrass

Do you know what the 5% rate equates to after tax? Just so I can compare … Do you know what the 5% rate equates to after tax? Just so I can compare it against, say, a cash ISA?




4%

Banned

rodrigobr

4%


3% for higher rate tax payers

Or even 2.5% for max rate tax payers

I don't know what people are complaining so much about, b*tching that you can only get interest up until a certain amount.

For those of us who use a Nationwide account for general use this is brilliant, as it's an interest paying account where as most current accounts pay nothing.

Will upgrade my current account to this and leave my joint acc as-is for the travel insurance, jobs a goodun best of both worlds

Thanks, OP.

MarkShopper

Well, I know it is true they have no shareholders to please (and make … Well, I know it is true they have no shareholders to please (and make money for), and I have always been happy with the service they have provided me. There may be better building societies out there, but you were comparing to the big banks. I don't recall Nationwide needing a tax-payers' bail out like the banks!




Maybe, but they took over a few smaller Building Societies and their members got nothing out of it. Nor did they get a say in the matter.

They stopped the free overseas transactions, they didn't ask their members if they would like that, they just imposed it.

They are no better than the banks IMO.

Banned

Inactive

Maybe, but they took over a few smaller Building Societies and their … Maybe, but they took over a few smaller Building Societies and their members got nothing out of it. Nor did they get a say in the matter.They stopped the free overseas transactions, they didn't ask their members if they would like that, they just imposed it.They are no better than the banks IMO.


And withdrew multi trip insurance for low earners

csiman

And withdrew multi trip insurance for low earners



You need to input £750/month into a flex account to receive multi trip insurance. If you earn less than that per month, realistically are you going to use it?

deposit in a Indian bank and get 9.5% icicibank.com

The multi trip travel ins is loads better value than the fee free withdrawals.

saw a deal on Indian ban icicibank, they are paying 9.5% interest
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