Nationwide esavings plus closing penalty!!

mizer1

If you close a Nationwide esavings plus account you could lose nearly 12 months interest!! even after the first year!

Below, copied from their website:-
·you want instant access and make 5 or less withdrawals each year (a lower rate will apply for customers closing the account or making 6 or more withdrawals each year. This lower rate will apply for the full 12 months following opening or the anniversary of opening)

The lower rate referred to is 0.1% instead of 2%, if you close the account on the anniversary of opening then you are OK but if you close the account just short of an anniversary then the interest for the last 364 days goes from 2% to 0.1%.

The trick seems to be to withdraw all money except for £1 (on your 5th yearly withdrawal of less) and leave the £1 until past the anniversary of opening the account (when you have had your interest) then close the account.

I rang Nationwide to make sure my understanding was correct, the lady had to ask a supervisor, and was surprised that it was correct, she also had a esavings plus account!!


It looks like Nationwide have learnt some new tricks on how not to pay interest!! The company that use to advertise they did not trick or catch their customers!!

Loughton_Monkey

To be fair to them, it's very clear on their web site.

But why are you using a 2% account anyway? 2.8% or 2.9% is commonly available with as many withdrawls as you want.

mizer1

LM thanks for your reply.

It is not uncommon for the first year but it is the first time I have seen subsequent years also penalised, for an instant access account, where the penalty is only if you close the account!

Yes I agree 2% is not much, which is why I am moving my money from this account but leaving a £1 to prevent loss of interest.

Thanks