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    • thatguyoverthere
    • By thatguyoverthere 15th Jun 17, 4:49 PM
    • 7Posts
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    thatguyoverthere
    Nationwide- whats the catch?
    • #1
    • 15th Jun 17, 4:49 PM
    Nationwide- whats the catch? 15th Jun 17 at 4:49 PM
    I've been looking into opening a new bank account. I want to separate my every day spending account from my savings account just in case the worst happens.
    The best interest rate seem to be found with nationwide (most places give 0....)
    I've been looking at nationwide
    /products/current-accounts/flexdirect/rates-fees-overdrafts

    So as I understand if I put in £2500 right away then £1000 a month I'll have £125 extra at the end of the year.
    Not awesome. Sucks how I get nothing on my money after £2500. But its the best I'll get.

    I asked a friend and he says it sounds dodgy, that its some kind of scam....But I'm not seeing it. Where's the catch beyond the obvious one that after £2500 you're not getting interest? Considering in every other bank I'd be getting no interest on anything this seems OK.

    For the whole story I'm British, currently working in Switzerland, my permanent home is in the UK. Though that I'm currently paying taxes in Switzerland means ISAs are closed off to me for now.
    Last edited by thatguyoverthere; 15-06-2017 at 4:51 PM.
Page 1
    • Neil Jones
    • By Neil Jones 15th Jun 17, 4:55 PM
    • 573 Posts
    • 300 Thanks
    Neil Jones
    • #2
    • 15th Jun 17, 4:55 PM
    • #2
    • 15th Jun 17, 4:55 PM
    Remember you only have to PAY IN £1000 a month. Nowhere does it say it has to stay there.

    You can pay £1000 in from somewhere and transfer it out 5 minutes later. You'll still get your interest.

    In fact don't keep more than £2.5k in it if it isn't going to generate any interest - open the 5% regular saver and use that.
    • eskbanker
    • By eskbanker 15th Jun 17, 4:58 PM
    • 5,005 Posts
    • 4,756 Thanks
    eskbanker
    • #3
    • 15th Jun 17, 4:58 PM
    • #3
    • 15th Jun 17, 4:58 PM
    The 5% interest rate only applies for a year, whereas most (all?) other interest-paying current accounts are ongoing.

    Not sure about any restrictions on residency but if you're non-resident that may be an issue, not least from their statement that "If you're new to Nationwide, you'll need to pop into a branch with some ID".

    But it's not a scam or dodgy in any way....
    • trailingspouse
    • By trailingspouse 15th Jun 17, 5:07 PM
    • 2,039 Posts
    • 2,821 Thanks
    trailingspouse
    • #4
    • 15th Jun 17, 5:07 PM
    • #4
    • 15th Jun 17, 5:07 PM
    I have one of these accounts - I pay in the £1000 per month then pay it straight back out again, and once a month I cream off the balance above the £2500 and put it in to my Santander account (only getting 1.5% on it these days, but better than nothing).

    I've made a note in my diary to close the accounts when the year is up.
    • thatguyoverthere
    • By thatguyoverthere 15th Jun 17, 5:13 PM
    • 7 Posts
    • 0 Thanks
    thatguyoverthere
    • #5
    • 15th Jun 17, 5:13 PM
    • #5
    • 15th Jun 17, 5:13 PM
    In fact don't keep more than £2.5k in it if it isn't going to generate any interest - open the 5% regular saver and use that.
    This seems to require a prexisting account with them?

    The 5% interest rate only applies for a year, whereas most (all?) other interest-paying current accounts are ongoing.

    Not sure about any restrictions on residency but if you're non-resident that may be an issue, not least from their statement that "If you're new to Nationwide, you'll need to pop into a branch with some ID".

    But it's not a scam or dodgy in any way....
    Originally posted by eskbanker
    Going into a branch is no problem. I'm home every month or two and can still get letters at my parents place in the UK just fine. Just want to make sure everything is kept legal.
    • Wacemindu
    • By Wacemindu 15th Jun 17, 5:38 PM
    • 5 Posts
    • 1 Thanks
    Wacemindu
    • #6
    • 15th Jun 17, 5:38 PM
    • #6
    • 15th Jun 17, 5:38 PM
    There's no catch. I opened this account a few months ago and am having no problems. With this you also get access to the 5% regular saver which allows a maximum of £500/month to be saved.

    As some others have already said the only "catch" is that after the 1st year of the account you lose the 5%, but then you can just switch again. Make sure you don't go for the £10/month paid option as this will eat your interest, on the other hand you could see it as getting mob insurance, car recovery and travel insurance for free.
    • thatguyoverthere
    • By thatguyoverthere 15th Jun 17, 5:44 PM
    • 7 Posts
    • 0 Thanks
    thatguyoverthere
    • #7
    • 15th Jun 17, 5:44 PM
    • #7
    • 15th Jun 17, 5:44 PM
    There's no catch. I opened this account a few months ago and am having no problems. With this you also get access to the 5% regular saver which allows a maximum of £500/month to be saved.
    .
    Originally posted by Wacemindu
    Interesting.
    So I open this one then I can get that one straight away?
    • YorkshireBoy
    • By YorkshireBoy 15th Jun 17, 6:12 PM
    • 29,191 Posts
    • 16,991 Thanks
    YorkshireBoy
    • #8
    • 15th Jun 17, 6:12 PM
    • #8
    • 15th Jun 17, 6:12 PM
    Interesting.
    So I open this one then I can get that one straight away?
    Originally posted by thatguyoverthere
    One of the qualifying criteria for access to the Flexclusive regular saver is to hold a FlexDirect current account.

    Lots of information on the Nationwide website.
    • badger09
    • By badger09 15th Jun 17, 6:34 PM
    • 5,074 Posts
    • 4,273 Thanks
    badger09
    • #9
    • 15th Jun 17, 6:34 PM
    • #9
    • 15th Jun 17, 6:34 PM
    Suggest you start by reading this, then start the application process

    http://www.nationwide.co.uk/products/current-accounts-eea/our-current-accounts/overview


    If you do manage to open a FlexDirect account, you will need to fund it with at least £1000 every month from a non-Nationwide account. You can then open a Flexclusive Regular Saver, move £500 per month into that from your FlexDirect account, and move the remaining £500+interest out again.
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