Nationwide launches interest paying current account

EarthBoy

FlexDirect:

It pays interest but you can't use branches and you don't get the free travel insurance. Arranged overdrafts cost £1 per day; unarranged overdrafts are £5 per day. Pay in less than £1000 per month and there's a £5 charge.

http://www.thisismoney.co.uk/money/saving/article-2239111/Nationwide-BS-launches-new-FlexDirect-current-account.html

http://www.nationwide.co.uk/current_account/default.htm

alanq

It's not true that one cannot use branches just that there are restrictions on the kinds of services offered. Note also the account does not provide paper statements through the post.

http://www.nationwide.co.uk/current_account/flexdirect/flexdirect-service-grid.htm

callum9999

Looks pretty rubbish to me. The interest is capped at less than the £5 reward you get from Halifax and you don't get proper branch access - what exactly is the point!

And after a year, when the interest rate drops to 1%, the interest is effectively capped at around £2 a month.

alanq

"1 If we make a change to these interest rates we'll notify you at least two months in advance if the change is to your disadvantage. If the change is to your advantage we may make it immediately."
http://www.nationwide.co.uk/pdf/btp/P7430_CurrentAccountsInterestRatesAndCharges.pdf

So having moved ones account one could shortly find that the rate is not even 2%!

mulronie

Looks like yet another poor-value gimmick from a society desperate to deceive their customers into thinking there's a great benefit to mutuality. Sure the directors will all pat themselves on the back at the AGM for bringing in "a market-beating current account that pays interest" though.

Venusflytrap

Have just read through the so called benefits of this account and in my opinion there are none when compared to existing banking products.

Why did they bother?! Sticking with my Flex account...

pqrdef

So will it be possible to keep opening new ones to roll the interest rate forward?

Gromitt

So I lose a lot of benefits for the sake of getting 2% on upto £2500 ? I think I'll pass.

"Access to in-credit interest if you're happy to bank online or by telephone. Automated telephone banking only.". That just takes the biscuit.

ses6jwg

Hahaha, it's bloody awful!

apt

It's only really of any interest to those who are extremely loyal to Nationwide. A combination of Halifax reward current account and Lloyds Vantage is a lot better way of getting interest from a current account.

GooliesOfFire

I had accounts with in-credit interest - A&L 6%+, Halifax 6%+, Intelligent Finance had it to.. Then they all were down to 0.1% APR after a while.

Their free travel insurance is nice so I'm not going to "upgrade" for sure.