Nationwide launches interest paying current account

Gromitt

The amusing thing is that they have just sent me an email, which includes "Upgrade now!". Yeah, right..

I wonder if they'll add those horrible "Upgrade!" buttons next to your current account like Halifax, TSB & Barclays do.

jasoncook

I was interested to see this as well as a long-time Nationwide account holder (no longer my primary account though due to poor rates).

Unfortunately, it looks like they've taken a page out of Santander's book!

Positives:
- 2% interest up to £2,500 (max. £50 pre-tax, £40 basic rate); reduced to 1% after a year (max £25/£20) - many other current accounts beat this, as do a number of Nationwide's penalty-free Instant Access Savings accounts if you are disciplined enough.
- £5 per item charge for insufficient funds, capped at £35 (FlexAccount is £15 per item)

The Negatives are pretty impressive :T:
- Loss of Travel Insurance (from FlexAccount)
- £5 underfunding fee (per month)
- Only internet banking and automated telephone facilities - unless manual intervention is required (e.g. large withdraws) or "in an emergency".
- Overdraft increased from 18.9% (+£20/mth unauthorised fee) to £1/£5 per day
- Loss of Paper Statements
- Increase of monthly requirement from £750 to £1000 for benefits (and in this case, interest)

Source: Nationwide "Rates And Charges" (sorry can't post the link as a newbie)

I'll certainly be avoiding this one. :eek: Struggling to see how it would benefit any customers at all?

innovate

jasoncook wrote: »

Unfortunately, it looks like they've taken a page out of Santander's book!

If they actually had, I would instantly have opened one of these accounts and deposited around £20K into it.

Since they haven't, and don't even come anywhere near the Santander 123, Nationwide have failed to sell me this new account.

jasoncook

innovate wrote: »

If they actually had, I would instantly have opened one of these accounts

Very true. As would I.

I should clarify my earlier one-liner - the majority of the downsides (branch restrictions and paperless statements aside) read like Santander's pre-123CA offerings earlier this year - down to the individual charges and caps.

Of course, the upsides were also much better than this offering - and the 123 offering has even more substantial upsides (with less downsides).

Additionally, I noticed Santander are abolishing underfunding fees in Feb 2013 from legacy accounts. Rather bizarre for Nationwide to introduce them as their competitors are removing them?

innovate

jasoncook wrote: »

.

Additionally, I noticed Santander are abolishing underfunding fees in Feb 2013 from legacy accounts.

Are they? Hadn't seen anything about this. Not that it matters to me since I don't underfund, but have you got a link? Any other changes you know are coming down the line?

jasoncook

innovate wrote: »

Are they? Hadn't seen anything about [underfunding]. ... but have you got a link?

At the risk of going off-topic... I wasn't either, but spotted it while I was double-checking my previous response.

On the Santander site, under Current Accounts then Legal Details on the left, there is a list of forthcoming changes to common accounts no longer on sale. That references a zero rate of interest, changes to paid/unpaid fees and removal of the underfunding charge.

I have no idea how many "legacy" accounts that does or does not cover, but it is an interesting development none-the-less.

Hope that helps.

innovate

I can't actually find it in this document http://www.santander.co.uk/csgs/StaticBS?blobcol=urldata&blobheader=application%2Fpdf&blobkey=id&blobtable=MungoBlobs&blobwhere=1223425967663&cachecontrol=immediate&ssbinary=true&maxage=3600

but am quite happy since the specific changes to the 123 account are basically just cosmetic.

apt

Here is the link about older current accounts. http://www.santander.co.uk/csgs/StaticBS?blobcol=urldata&blobheader=application%2Fpdf&blobkey=id&blobtable=MungoBlobs&blobwhere=1223428042652&cachecontrol=immediate&ssbinary=true&maxage=3600

Don't mind an end to the 0.5% interest, but they are probably preparing the way for the end of free European travel insurance.