Nationwide FlexDirect - 5% interest, free overdraft

amictus

Hominu wrote: »

If you don't have an overdraft on them already you'll have to apply for one, which may involve another credit check (which may be internal - ie, not seen by other lenders).

Thanks for the warning. If Nationwide need to repeat a full credit check for each new overdraft request then it would probably be a good idea to just try with one account to avoid multiple checks being recorded on my permanent credit history.

YorkshireBoy wrote: »

Wait and see. I am. :)I took the max £2.5K facility on all my 3 FlexDirect accounts during the application process.

My accounts have been sitting with large credit balances all this month. Because I'm not sure they'll honour either the 5% rate or the fee-free overdraft on two of my accounts*, and the penalty for me if they don't could have been £30 (50p per day x 30 days x 2 accounts), my intention is to empty all the accounts, including £7.5K of overdraft facility, for the last two days of the month.

If I'm hit with £2 of charges I'll know it won't work. If, however, I don't get any charges, then I'll simply dump the whole £7.5K in my Halifax Online saver making 2.8% AER until June...and by then I'll have got a Santander 123 account sorted for 3% AER for the rest of the 12 month intro period.

That's the plan anyway!


* Condition 1.5 says...

"You will only be entitled to one introductory rate or offer (where applicable) on a Nationwide Group current account product."

Thanks for sharing your plan; it sounds like a good one! Good luck! Please do let us know how you get on.

If the following information is to believed, then the situation may well be different for me (who applied for additional accounts in April):

T3B3 wrote: »

Just got off the phone to Nationwide and my three accounts will all be paying 5% for 1 year as they were open before the 8/03/2013 (opened all three on 04/03/2013). If you opened an account after this date you will only have one account paying 5%.

https://forums.moneysavingexpert.com/discussion/comment/60415973#Comment_60415973

I'll probably fund one additional account this month to see if it earns any interest. If not, I'll apply for the overdraft facilty next month for a similar one-day charge check as you're doing. If the additional account isn't eligible for the interest rate offer, then I suspect it'll be the same for the free overdraft.

YorkshireBoy

owains wrote: »

Thanks for sharing your plan; it sounds like a good one! Good luck! Please do let us know how you get on.

4.89% interest paid on all 3 accounts, and no O/D charges notified for the 3 days my O/Ds were maxed out last week.

£7.5K now on it's way to Halifax for 2.8% AER.

Tantalus86

Same here, opened 2 accounts - both AFTER the supposed cut off to exploit the loophole in the T&Cs - BOTH have been paid the 5% interest.

So much for whatever Nationwide say...

elantan

It's a bit of a minor complaint ... But the way I worked out the interest was £100 divided by 365 then for the month of April I multiplied by 30 and worked it out as £8.219 ( I rounded it down to £8.21) so I reckoned that what I should've got today, however I got £8.03 so 18p short , as I say it's only 18p and I'm not too fussed about that as its still a hell of a lot more than I ever got ... But what's bugging me is how I've managed to do my sums wrong ... Can anyone explain to me the correct way to work it out ?

Thanks

DragonQ

Where did the £100 figure come from?

elantan

Well 5% of £2500 is £125 take off 20% of that for tax which gave me £100 so I reckoned it was £100 a year I then divided tht by 365 and multiply that by the amount if days in the month

Is that wrong ?

alexlv

elantan wrote: »

Well 5% of £2500 is £125 take off 20% of that for tax which gave me £100 so I reckoned it was £100 a year I then divided tht by 365 and multiply that by the amount if days in the month

Is that wrong ?

Try 4.89% instead of 5% in your calculations


5.00% AER (4.89% gross p.a.) in-credit interest on balances up to £2,500 (fixed for the first 12 months)1

elantan

Ahhhhh right I see ... That would make more sense ... Thanks

I'm getting my apr and aer 's mixed up

amictus

YorkshireBoy wrote: »

4.89% interest paid on all 3 accounts, and no O/D charges notified for the 3 days my O/Ds were maxed out last week.

£7.5K now on it's way to Halifax for 2.8% AER.

Thanks for reporting back. I guess the question now is whether they'll decide to cut off the interest/overdraft offers without warning!

I ended up part-funding one of my 3 additional accounts last month as a test and was pleasantly surprised to see interest was paid on this. I was expecting some kind of automatic block to be triggered as I was told explicitly via the online messaging service that interest would only be paid on my first account. I have now transferred money to all 3 in the hope that they don't act on this and stop paying. Wait and see I suppose!

Has anyone not received interest on more than one account?

KevF_3

My wife 2 accounts were both paid fine.

My 2 for some reason didnt. Got nothing on the 1st account and £0.34 (less £0.06 tax) on the 2nd. On the phone today they started to tell me I didnt transfer any money in this month, despite the entry stating 1/4/13 on the screen. Then they said that they would only pay interest on 1 account. Couldn't explain why it was only 34p was paid though. Apparently they are looking into it for me.

Conversation went on for about 40 minutes, most of which were me holding. The 1st guy did go away to prove that the money went in on the 31/3/13 but never came back and I spoke to someone else intead. Might be worth not doing the transfer in the early hours of the morning. Maybe their systems dont count it as an entry that day until the bank opens perhaps?? Doesn't explain the 34p though.

Dont know what they are going to do. If they correct it it will probably be for just on 1 account. But might keep both just to see if next month any interest will get paid.