Nationwide FlexDirect - 5% interest, free overdraft

callum9999

Pincher wrote: »

Barclaycard.

Are you sure? Nothing on their website indicates that they take recurring payments from debit cards. The only bit I can find that is vaguely similar is an option to save your debit card details - but that explicitly says they won't take money automatically.

someone

simax wrote: »

Apparently the FlexDirect debit cards start 4751, instead of 4543...... no idea why.

That will be to help them enforce the restrictions on branch use.

CindyT

KTF wrote: »

This is simply incorrect. There is no underfunding fee.

http://www.nationwide.co.uk/current_account/flexdirect/rates-fees-charges.htm

I emailed Nationwide to clarify and they confirmed this in writing to me that there will be a £5 underfunding fee.

See below:

[FONT=Arial, Helvetica, sans-serif]Hello Cindy,
[FONT=Arial, Helvetica, sans-serif]Thank you for your message.[/FONT]
[/FONT]
I'm sorry you weren't aware of the charge on the FlexDirect if you didn't credit £1000.00 per calendar month. The charge would be £5.00 for each month that you didn't make the necessary deposit into the account.
I would like to thank you for contacting us, if you need anything else please reply to this message.

Kind regards,

Matthew Wood
Customer Consultant
E-Cont@cts
Customer Service and Operations
http://www.nationwide.co.uk



--- Original Message ---

Received: 02/03/13 11:18:38 o'clock GMT
To: <customer.bbm@nationwide.co.uk>
Subject: Application queries - Current account - None of the above


Hello,

I have recently applied and been accepted for the FlexDirect with a £750 overdraft. However, I didn't notice the T&C that there would be 'no monthly fee if you pay £1,000 or more into your account each month (excluding internal transfers)'. Does this mean that if I don't pay in £1000 a month then I will be charged a fee? If so how much will this be?

Many thanks

Cindy

BugsyBrowne

CindyT wrote: »

I emailed Nationwide to clarify and they confirmed this in writing to me that there will be a £5 underfunding fee.

See below:

[FONT=Arial, Helvetica, sans-serif]Hello Cindy,
[FONT=Arial, Helvetica, sans-serif]Thank you for your message.[/FONT]
[/FONT]
I'm sorry you weren't aware of the charge on the FlexDirect if you didn't credit £1000.00 per calendar month. The charge would be £5.00 for each month that you didn't make the necessary deposit into the account.
I would like to thank you for contacting us, if you need anything else please reply to this message.

Kind regards,

Matthew Wood
Customer Consultant
E-Cont@cts
Customer Service and Operations
http://www.nationwide.co.uk



--- Original Message ---

Received: 02/03/13 11:18:38 o'clock GMT
To: <customer.bbm@nationwide.co.uk>
Subject: Application queries - Current account - None of the above


Hello,

I have recently applied and been accepted for the FlexDirect with a £750 overdraft. However, I didn't notice the T&C that there would be 'no monthly fee if you pay £1,000 or more into your account each month (excluding internal transfers)'. Does this mean that if I don't pay in £1000 a month then I will be charged a fee? If so how much will this be?

Many thanks

Cindy

To run an account, Nationwide customers need to pay in at least £1,000 a month - though the building society has also dropped the £5 a month "underfunding charge" for customers who deposited less. In any month where less than £1,000 is deposited, no interest will be paid.

Gromitt

CindyT wrote: »

I emailed Nationwide to clarify and they confirmed this in writing to me that there will be a £5 underfunding fee.

It doesn't say this on their website, or in their FAQ:

What happens if I don’t pay £1,000 a month into my account? We won’t be able to pay you credit interest on your balance in any month you don’t pay in £1,000.

So if I forget to pay in £1000 in some month (unlikely, but possible), I shall hit them over the head with their own FAQ.

le_loup

Gromitt wrote: »

It doesn't say this on their website, or in their FAQ:


So if I forget to pay in £1000 in some month (unlikely, but possible), I shall hit them over the head with their own FAQ.

What does it say in their T&Cs?
That's the only source of T&Cs!

callum9999

le_loup wrote: »

What does it say in their T&Cs?
That's the only source of T&Cs!

Not really. The Nationwide website clearly advertises it as having no underfunding fee - they can't just hide behind completely contradictory T&Cs...

That would be like them advertising it as having a 50% interest rate but justifying it by saying the T&Cs say it's only 5%.

Gromitt

le_loup wrote: »

What does it say in their T&Cs?
That's the only source of T&Cs!

Although I agree with you, I think I stand a good change of getting the £5 refunded (or perhaps more via a formal complaint) as:

The fee is not included on the website where comparison is made to the FlexAccount which carries no underfunding fee,
The FAQ on the account clearly states no fee is payable for underfunding,
The rates and charges document for FlexDirect clearly states no fee is payable for underfunding, and if such a charge is introduced, will notify me at least 2 months in advance: http://www.nationwide.co.uk/pdf/btp/P7430_RatesAndCharges.pdf

RP2X

Question

Thanks for the original post, I am trying to understand the deal and have a rather silly question !

Could someone not just open up lets say in theory 10 Flexdirect accounts, put 2.5k in them each, and just put 1k in each account monthly to hit there requirement, and simply move that 1k back to another bank account and then back into the next flex account ?

Only catch I can think of is perhaps there is a penalty if you withdraw that 1k out and you don't get your interest then for that month ? or some sort of time/grace peroid perhaps that 1k has to be in the account for a week...

I doubt its seriously this easy and am wrong on the above lol

LittleVoice

RP2X wrote: »

Question

Thanks for the original post, I am trying to understand the deal and have a rather silly question !

Could someone not just open up lets say in theory 10 Flexdirect accounts, put 2.5k in them each, and just put 1k in each account monthly to hit there requirement, and simply move that 1k back to another bank account and then back into the next flex account ?

Only catch I can think of is perhaps there is a penalty if you withdraw that 1k out and you don't get your interest then for that month ? or some sort of time/grace peroid perhaps that 1k has to be in the account for a week...

I doubt its seriously this easy and am wrong on the above lol

No such catch. As long as it goes in during the course of the month and you have a credit balance, you get the interest.