Nationwide FlexDirect - 5% interest, free overdraft

adindas

innovate wrote: »

Your interest will be calculated daily, based on the daily balance of your account. If you deposit £2.5K and withdraw it on the same day, your balance at the end of the day is £0, thus you get 0% interest for that day.

Like any other non-ISA account, the interest rate quote is subject to tax. If you are not a tax payer, you can fill in an R85 or an R40.

Hi girl are you sure about this ?
I always do FPO of £750 from my LTSB to my flexi NW and back to LTSB within a few minutes to meet NW funding requirement of Travel Insurance and I am not aware of loosing interest on any single day from my LTSB (not sure though) although the balance is going down and up again on that particular day.time.

As far as I know in any bank there will be a certain time on the day where your balance on that day will count e.g normally in the afternoon depends on the bank. As long as you do it before that time your balance on that day will always full.

What I normally do is I do it very early in the morning e.g. after midnight ......

Are you aware of loosing a day interest if you do FPO/FPI after midnight and come back again within a few minutes. I mean here of loosing a day interest of either from LTSB or NW ?

People who know and experience about this could probably contribute to this discussion ???

Thanks

10_66

Hominu wrote: »

I asked via secure messaging and got told that you can have as many FlexDirect accounts as you want, but the 5% is only applicable to the first account...

Fingerbobs wrote: »

This is the exact opposite of what I was told on the phone (0800 121 6943) earlier today.
The person I spoke to said you could have a maximum of four FlexDirect accounts, and would receive the 5% interest on up to £2500 on all of them, provided the requirements are met for each account.

On the strength of this, I have opened four accounts, but none of them are showing up on on-line banking yet - should this happen immediately?

I rang today (0800 30 20 10) and was told the same as Fingerbobs, that you could open up to 4 and receive interest on them all, providing t&cs are met. Doesn't necessarily mean that's correct though, it'd be good if they made it clear on the information page on their website.

ColdIron

adindas wrote: »

Hi girl are you sure about this ?
I always do FPO of £750 from my LTSB to my flexi NW and back to LTSB within a few minutes to meet NW funding requirement of Travel Insurance and I am not aware of loosing interest on any single day from my LTSB

You are expressing the same point as innovate but coming at it from the other direction. Innovate's point is that if the money is not present for a day no interest accrues, you are saying if the money is not absent for a day you will not lose interest. Same same

CRISPIANNE3

plunt wrote: »

risky if FP doesnt work! I know i can see my fexdirect account open now and i transfered 1pound frommy santander account to tst. it went in fine. so i transfered 2499 next and it has disappeared. its not in the santander account and not in the flex direct account!

I have found transfers between Lloyds and NW even on a Sunday are very, very quick. However that said unlike the Chancellor I do have a plan B in case money is not there by 3.30pm.

innovate

adindas wrote: »

Hi girl are you sure about this ?

There are differences in how banks handle their processing over weekends. Some people spend gigantic amounts of effort to find out these differences and then shift some money to and fro, usually late at night, to gain an extra penny or two (literally) of interest. Naturally, they have no guarantee whatsoever that the policies of the banks are really as these people believe they are, and banks can change these policies whenever they like, with no need to notify anyone. Plus, there can be delays in the money transfers, and some people who have been playing this game have reported difficulties with their banks.

Anyway, the question I originally responded to was somewhat different. Someone asked whether, in order to get interest, they would need to keep money in their account. I am quite satisfied that their question was nothing to do with the above.

juanmanuelmarquez wrote: »

How does this in-credit business work though, i mean i have saving accounts. Is it if i pay in 2,500 and withdraw it i would get the 5% or do i need to pay in 1k and keep 2.5k in the account full month to gain the 5%.

blindman

adindas wrote: »

I have not seen the document myself, but I have read a few people have mentioned. It will need to come from external A/Cs. This is also what I believe ...

If this the case you will not be able to fund it from your overdraft from the new flex direct A/C you just opened as this will be seen as internal transfer ....

If you do the 4 accounts with one being topped up to £2500 from the other three overdrafts you will still have to cycle £1000 through the in credit account.

The way I read the wbe page advert you do NOT need to do this for the overdrawn accounts (not sure of that TBHO) However MSe states

Funding requirement. To get the credit interest, customers must pay in a minimum £1,000 each month to qualify. There's no minimum pay-in for the free overdraft.

But the T&C's for this account para 1.3 possibly mean you will have to:


Not a problem in this day and age with Fast transfers TBHO

You could Tx £1000 from the account with the £2500 to an external source and then Tx it back to the first of the three OD accounts. (if needed)

Then repeat unitl the £1000 is back in the £2500 one.


Bit of a faff thoguh for £100 profit at the end of 12 months...

kieatky

Have seen many people mention opening multiple flex direct accounts inorder to use the fee-free overdrafts to fund another and thus gain the £100 interest. Good idea I suppose, unless you plan on opening new credit sources within the immediate future. I would imagine that Nationwide would report the conduct of the accounts to the credit reference agencies and if you've got 2/3 accounts constantly overdrawn then this would give the impression that you're relying on the overdrafts to fund your daily life (rather than using them to obtain free cash). Considering this information will be held for 6 years on your credit file then is the £100 really worth it?

Gromitt

Pincher wrote: »

This does make the Regular Saver type account somewhat redundant, as you get 5% on £2,500 continuously, and have instant access.

But once you hit the £2,500 limit (or 10K if the Nationwide staff are correct), you don't get any more interest, so might as well put it in the 6% regular saver account.

ColdIron

Even before any threshold is reached you have a steadily expanding proportion at 6% from 5%, which is nice

blindman

kieatky wrote: »

Have seen many people mention opening multiple flex direct accounts inorder to use the fee-free overdrafts to fund another and thus gain the £100 interest. Good idea I suppose, unless you plan on opening new credit sources within the immediate future. I would imagine that Nationwide would report the conduct of the accounts to the credit reference agencies and if you've got 2/3 accounts constantly overdrawn then this would give the impression that you're relying on the overdrafts to fund your daily life (rather than using them to obtain free cash). Considering this information will be held for 6 years on your credit file then is the £100 really worth it?

Pure conjecture and IMHO totally wrong.

It's no difference to stoozing and holding several CC's that are maxed out but that get paid off without fault .

You are saying that because I may have three accounts OD my credit rating will be adverseley affected for 6 years:cool:

What about the countless other accounts I hold that are in the black, my many previous years of blemish free accounting covering mortgage, loan and CC repayments etc.

I don't think anyone will be able to hold more than one account so this was just a "what if"

As I said it's a faff for £100