Nationwide FlexDirect - 5% interest, free overdraft

Montmorencymon

I was a bit unobservant, but I hadn't previously noticed there was an option to upgrade from an existing Flexaccount (as opposed to opening a new one from scratch).

I've now found the option online (thanks to other posters who helped to make me aware of this).

I didn't/dont want the hassle of having new account numbers, debit cards, etc, so upgrade seems great.


Are there any downsides to upgrading? I know you lose any exclusive benefits to the old account, but I can't think of any.

I also know they want you to operate it online or by phone. We mostly do this, except occasionally paying in cash or more unusually cheques, usually via the fancier ATM. Will you still be able to pay in cash or cheques in a branch with the FlexDirect account?

Thanks if anyone can tell me.

EDIT: p.s. Should it make any difference if you pay in the £1000 per month in smaller chunks, or does it have to be all in one go?

212

You have to use the ATM/Deposit machines to pay in cheques/cash up to £300 (can use a counter for above that amount). It sounds like you already do that so they'll be no difference.

You can pay the 1k in smaller chunks.

If you don't want a new debit card etc and actually use it as your main account then upgrading is the best option. If you are using it to get benefits (and want to keep your old Flex benefits) then opening a new account from scratch is the best idea - in theory you should then keep the travel insurance from the old account - providing you the pass credit scoring for a 2nd current account.

bob792

Amending Nationwide Standing Orders

I thought I would do the monthly £1k funding for my new FlexDirect by 2 way standing orders with Lloyds on the same day each month. As a test, I set these up to start from 7 March for £1 to go out monthly. These transactions worked so I have now gone into my Nationwide account today (10th) to alter the amount to £1k, but their system won't let me because it says there is an error ("Sorry - you must correct the errors on this page before you can continue") but the 'error' it shows highlighted in pink is the FIRST payment date of 07/03/2013 which is a field I am not allowed to alter.

I can't believe Nationwide have designed a system where it is impossible to amend a STO amount, payment date or frequency as they have clearly designed the screen layout with this in mind.

Has anybody managed to amend a Nationwide STO and if anyone has come across this bug before, do you know of a way around it ?

persa

bob792 wrote: »

Amending Nationwide Standing Orders

I thought I would do the monthly £1k funding for my new FlexDirect by 2 way standing orders with Lloyds on the same day each month. As a test, I set these up to start from 7 March for £1 to go out monthly. These transactions worked so I have now gone into my Nationwide account today (10th) to alter the amount to £1k, but their system won't let me because it says there is an error ("Sorry - you must correct the errors on this page before you can continue") but the 'error' it shows highlighted in pink is the FIRST payment date of 07/03/2013 which is a field I am not allowed to alter.

I can't believe Nationwide have designed a system where it is impossible to amend a STO amount, payment date or frequency as they have clearly designed the screen layout with this in mind.

Has anybody managed to amend a Nationwide STO and if anyone has come across this bug before, do you know of a way around it ?

I had that same problem today! I wanted to increase my usual regular payment from my Nationwide account to an external account and it wasn't having any of that. I have done this successfully in the past - as recently as in the last month - couldn't get past the screen today.

I assumed the online system was playing silly beggars today, so I just cancelled my old standing order and set up a new one.

innovate

Montmorencymon wrote: »

Are there any downsides to upgrading? I know you lose any exclusive benefits to the old account, but I can't think of any.

You lose the european travel insurance. The rest ("Flexclusives") you keep.

Montmorencymon wrote: »

I also know they want you to operate it online or by phone. We mostly do this, except occasionally paying in cash or more unusually cheques, usually via the fancier ATM. Will you still be able to pay in cash or cheques in a branch with the FlexDirect account?

From their FAQ:

FlexDirect is a self-service account which provides customers exclusive benefits in return for managing their account remotely. However, this does not mean that customers are not welcome to use the branch. Any transactions that are not possible to complete via the Internet Bank, the Telephone Bank, an ATM or our mobile banking app we are happy for customers to use the branch. Customers can also use the branch in any distress situations where they require assistance to resolve.

Montmorencymon wrote: »

EDIT: p.s. Should it make any difference if you pay in the £1000 per month in smaller chunks, or does it have to be all in one go?

Just needs to add up to £1K a month (which I believe is a calendar month but you might want to confirm that)

charlieboycat

a&akay wrote: »

... my FlexDirects are showing the max overdraft which I applied for on all my 4 new accounts. .... The transfer process to the likely 1 account that you can get 5% on confirms that you're within your limit. ..... 3 overdrafts could fully fulfil the £2.5k requirement as long as you remember to cycle £1k in and out immediately each month and your overdrafts are big enough to do so, mine were.

The 5% rate is an "introductory rate". The 12 month interest-free overdraft is an "introductory offer". You are restricted to "one introductory rate or offer" on the FlexDirect product (T&C 1.5). It therfore seems to me that if your first FlexDirect account is getting the 5% rate then your other three will not only be ineligible for the 5% rate but will also be ineligible for an interest free overdraft. In which case you will be paying 50p per day on each of the three overdraft accounts - or £547.50 for the year. Yet the total interest earned on the 5% account will only be £125 (£100 after basic rate tax).

Montmorencymon

Catriona_P wrote: »

That was the plan, to transfer money from the Nationwide account to pay off my current overdraft. Does anybody know what the average overdraft is that Nationwide give? From what you're saying this sounds like it would be unlikely to work for me?

Getting out of an OD is so hard when you're paying fees on top.

If the Nationwide idea does not pan out, do you have any trustworthy family members or close friends who might be able to help you pay it off?

I know loans between family and friends can be problematic, but then, so can loans from banks!

You have to do it properly, with a schedule of repayments written down. You can find spreadsheets on the internet (maybe even on this site) to help you work it out.

You could be giving a family member or friend a decent rate of tax-free interest, and still pay less than a commercial loan or overdraft, and with a bit more flexibility (e.g. scope for missed payments or overpayments, without penalty. Make sure you write down what is agreed though).


This is not an original idea. I think we got it from Duncan Ballantyne off the telly, and it has worked a few times in various directions in our family.



On a more general theme, and of no immediate help, you might be interested in the movement to reform the money system. Have a look at the Positive Money website.

With a reformed money and banking system, there could be a lot less public, private, and commercial debt, and we might all be a lot better off (with the possible exception of the bankers).


With our existing money and banking system, debt and inflation are hard-wired in, and it has wide-reaching implications for all of us. But it simply doesn't have to be this way. It really doesn't.

Montmorencymon

212 wrote: »

If you don't want a new debit card etc and actually use it as your main account then upgrading is the best option.

Thanks 212. Actually, having read back a bit more, it sounds like even with upgrading, you'd still get a new debit card. Actually, that's much less of a problem than having a new sort-code / account number would have been, so upgrading is a feasible option for us (joint account).

Dustykitten

Re having more than one account. I have opened one in my sole name, up and running fine. DH has applied for one in our joint names. I'm not sure now that this was a good idea, will it break the rules for only one bonus rate?

charlieboycat

Interesting question? On th face of it DH should get 5% but you should maybe only get 1%. Perhaps Nationwide will pay 3% ... who knows [the people least likely to know the answer are NWD's customer services]?

To be safe, why not try cancelling DH's application? Once the account is actually open a strict interpretation of the T&C might suggest that closing it straight away and then opening a sole account for DH wouldn't work.