Nationwide e-Savings Plus account - 3.75% interest

rb10

Have not seen this mentioned on here yet, apologies if it's mentioned in another thread.

New account from Nationwide (appears to have been released today) giving 3.75% interest (variable) if up to three withdrawals are made in a year. If 4+ withdrawals are made, interest reverts to 1.5% (also variable).

Note that "The lower interest rate will apply for the full 12 months following opening or anniversary of opening" if 4 or more withdrawals are made, so if you think you might need a 4th, it's better withdraw all apart from £1 (minimum balance) on the 3rd withdrawal and move it all into a standard e-savings (3.05%). It appears that you need to keep the account open, as in the T&Cs, it says "On closure, interest will be paid from the date the account was opened or the last interest payment date, whichever is most recent, to the date of closure at the lower rate in accordance with condition 20 above."
(my underlining). However, I can't see what relevance condition 20 has to this - maybe someone can enlighten me.

Full details here: http://www.nationwide.co.uk/savings/instant_access/e-savings_plus/introduction.htm and here: http://www.nationwide.co.uk/savings/instant_access/e-savings_plus/summary.htm and T&Cs here: http://www.nationwide.co.uk/savings/legal.htm#esavingsplus

poppy10_2

rb10 wrote: »

in the T&Cs, it says "On closure, interest will be paid from the date the account was opened or the last interest payment date, whichever is most recent, to the date of closure at the lower rate in accordance with condition 20 above."
(my underlining). However, I can't see what relevance condition 20 has to this - maybe someone can enlighten me.

It's supposed to refer to condition 21, which says that if you close the account, the interest you earn for the twelve months prior to closure will only be 1.5%.
You can check out any time you want, but you can never leave....

You have to open a linked Flex current account, too, and make all deposits and withdrawals via that. Sounds like too much of a faff for a rate that will probably be slashed next month anyway.

bristolleedsfan

Being as there is absolutely no administration involved with people transferring funds to and from a Nationwide E-Saver via its Flexi-account and visa versa its a pity Nationwide couldnt just make this enhanced rate available to ALL its E-Saver customers.

If I get my Abbey Current Account application accepted then ill move all my Instant access savings to.

http://www.abbey.com/csgs/Satellite?c=GSProducto&cid=1195853394566&pagename=Abbey%2FGSProducto%2FGS_InfProducto

Milarky

[AVOID!]

3.75% if no withdrawals made, 1.5% of 4 (or more) withdrawals made or on closure for the most recent interest calucation period of (up to) 12 months...

This looks rather like an HSBC online bonus saver (and similar accounts) except that you have to wait a full 12 months ["e-Savings Plus interest rates are calculated daily and [I]paid annually on the anniversary[/I] of account opening. Interest rates are variable."] to receive the enhanced interest rate.

All these other 'two tier' (or 'rip-off') accounts offered by others at least allow access to the higher rate by timed withdrawals each month. Nationwide's account team has taken the 'rip off' features to new highs however - you can only get the interest earned to date paid up after 12 months of opening.

apt

Perhaps this new account is a sign that Nationwide has slashed its variable rates too far and is haemorrhaging money. But it's just not attractive enough to attract substantial new funds. The Yorkshire BS Internet Saver offers a better rate and much better access. Last month's Halifax Guaranteed Saver Reward offered 6% fixed and four withdrawals which was a lot better than Nationwide's 3.75% variable and three withdrawals. Apart from a fixed rate cash ISA the only money I am going to put with the Nationwide will be for foreign currency spending.

Milarky

apt wrote: »

Perhaps this new account is a sign that Nationwide has slashed its variable rates too far and is haemorrhaging money.

Oh, I do hope so! But alas, Nationwide are stupid on the outside (public relations) whilst smart on the inside (counting-house stuff) IMO. The have 'priced' this just about right; if anyone is suckered into opening the account, makes more than 4 withdrawals in 12 months (so they start thinking of it as a 'bond' whereas the rate can still go south of 3.75% in practice) OR even makes the mistake of closing the account 'early' they will get buttons.

No, Nationiwide rates are a long, long way from implying a 'fire sale'. But I would urge all Nationwide savers however to consider a 'stike' over an extended period of time to bring them down from their ivory tower..

rb10

I reckon the clause in the T&Cs stating that closure will result in the lower rate being paid will trip up a lot of people. This fact is not made obvious, as most people won't get as far as condition 31. So many people will close on the third withdrawal, assuming that closure just counts as a standard withdrawal, and will never realise that they only got a miserable 1.5% for the whole year!

I,_Brian

Milarky wrote: »

This looks rather like an HSBC online bonus saver (and similar accounts) except that you have to wait a full 12 months

Excepting that the HSBC one looks like it has a lower interest rate, ie, 3.25% instead of Nationwide's 3.75%.

As for withdrawals - seems pretty normal with high interest savings accounts to have clauses on this. So far as I'm aware, high interest savings accounts usually come with withdrawal penalties.

There are a number of current accounts which claim to pay a high interest, but this is often only allowed under strict conditions, and is capped at the amount to which the high interest will be paid - which doesn't make them really all that worthwhile if saving any significant amount. I don't see that here.

Funny, the other day people were moaning because they were very few savings accounts paying any kind of interest rate - now people complain that they want to use high interest savings as a current account. Cake and eat it, and all that.

ADDED: I opened a Flexaccount earlier this year for going on holiday with - while the interest rate on savings may be pants, the savings on exchange rate fees when using a Flexaccount instead can really build up, so am surprised it's a problem for some.

bristolleedsfan

I,_Brian wrote: »

As for withdrawals - seems pretty normal with high interest savings accounts to have clauses on this. So far as I'm aware, high interest savings accounts usually come with withdrawal penalties.

ADDED: I opened a Flexaccount earlier this year for going on holiday with - while the interest rate on savings may be pants, the savings on exchange rate fees when using a Flexaccount instead can really build up, so am surprised it's a problem for some.

Point is that their are several higher paying accounts that dont have such withdrawal restrictions, also fact that the e-saver merely sits alongside the current account, little administration is involved in withdrawals so its not unreasonable to hope that it pays a "great rate" without any restrictions.

Whats a problem for "some" is that "some" of us are subsidising others who only open Flexi-account for reasons such as going abroad. :mad:

amcluesent

>Nationwide has slashed its variable rates too far and is haemorrhaging money<

Yep. I've moved >£10K sums to Halifax 6% fixed web-saver 5% web saver reward.

Hungerdunger

poppy10 wrote: »

You can check out any time you want, but you can never leave....

Showing your age there