Nationwide Flexaccount

Inactive

Good tip rb10.. Thanks.

simax

Inactive wrote: »

Could well do, then I will move some to the e-savings + account.;)

... or you could just move your money to an institution that pays a better rate?

Inactive

simax wrote: »

... or you could just move your money to an institution that pays a better rate?

Could do, if you can find me one with the same terms for currency transactions in the Euro Zone.;)

simax

Inactive wrote: »

Could do, if you can find me one with the same terms for currency transactions in the Euro Zone.;)

The GBP to Eurozone rate is shot as it is. Doubt it would make much difference at the moment LOL

agsnu

Inactive wrote: »

Could do, if you can find me one with the same terms for currency transactions in the Euro Zone.;)

What currency transactions in the euro zone are you carrying out on your e-Savings Plus account? :P

Inactive

agsnu wrote: »

What currency transactions in the euro zone are you carrying out on your e-Savings Plus account? :P

Obviously none, but it is linked to my FlexAccount, I only leave a few quid in my FA, move any surplus to e-savings, and any left over that I may need infequent access to, I move to e savings +.

It works fine for my needs.

I have more longer term investments with NW in fixed rate bonds paying 7% and 6.15%.

orangeslimes

rb10 wrote: »

But the really sneaky bit is that if you close the account during the year, you get the lower rate for the whole year (regardless of the number of withdrawals made). So if you want to close it, don't! Instead, withdraw all bar £1 (min. balance), wait until interest is next paid, and then close the account.

so that means if you withdraw all your money once so the balance is 0 you get the lower interest rate??? I can't find anything on the NW page that specifies that...

rb10

orangeslimes wrote: »

so that means if you withdraw all your money once so the balance is 0 you get the lower interest rate??? I can't find anything on the NW page that specifies that...

I think it is really, really sneaky, and they will catch a lot of people out with it. I cannot see it mentioned on the main account pages either, it's buried away in the Terms and Conditions - see below:

20. If you make 3 or fewer withdrawals in a year you will receive interest at the higher rate for the whole of the year.
21. If you make 4 or more withdrawals in a year or close the account you will receive interest at the lower rate for the whole of the year or up to the date of closure respectively.

So closing the account results in the lower interest rate being paid for the whole of the year. This means you would get just 0.5%, not 2.75%, even if it was in fact your only withdrawal.

But the way of getting around this is to bring the balance down to £1, then don't touch the account. On the anniversairy of opening, you'll be paid interest at the full rate, and once you've got the interest, you can then close the account.

This works because a Year is defined as being the year up to any anniversairy of opening the account (i.e. open the account on 22nd Feb 2009, Year 1 is 22/2/09 to 21/2/10, Year 2 is 22/2/10 to 21/2/11 etc). So, by closing the account during the first few days of any Year, or when the account balance has been very low for the whole of that Year, the interest that you will forfeit will be very small.

orangeslimes

rb10 wrote: »

I think it is really, really sneaky, and they will catch a lot of people out with it. I cannot see it mentioned on the main account pages either, it's buried away in the Terms and Conditions - see below:



So closing the account results in the lower interest rate being paid for the whole of the year. This means you would get just 0.5%, not 2.75%, even if it was in fact your only withdrawal.

But the way of getting around this is to bring the balance down to £1, then don't touch the account. On the anniversairy of opening, you'll be paid interest at the full rate, and once you've got the interest, you can then close the account.

Thank you for pointing that out. i have already put the balance to 0 (i put £1000 in for a month and then transferred it all elsewhere) and it still seems open and showing up on my internet banking page- so have I effectively closed the account according to the T&C? am confused now

rb10

orangeslimes wrote: »

Thank you for pointing that out. i have already put the balance to 0 (i put £1000 in for a month and then transferred it all elsewhere) and it still seems open and showing up on my internet banking page- so have I effectively closed the account according to the T&C? am confused now

According to the T&Cs,

6. You must also keep at least £1 in the account at all times.

so you may have inadvertantly broken them, which may mean get 0.5% on the money. I would be very wary of putting any more in until your next account Year (i.e. after you are next paid interest), in case they have put you down to 0.5% (which, if they have, would apply for the whole year). It's a shame they can't do what Halifax do and show the rate that applies to your account on internet banking.