Nationwide FlexDirect C/A - 5% on 2K5 no fee

rb10

missmuddy wrote: »

1. In opening a 'new' account rather than upgrading an existing account, I only knew when the account was opened, and therefore was only able to make a deposit, about a week after the event. Consequently I, or anyone in the same position, won't get the full years bonus rate! The difference doesn't amount to alot, but it seems a bit cheeky to me that there is no facility to take full advantage of the advertised bonus as soon as the account is 'open'.

You could have checked online, phoned up, or asked in a branch. They'd have told you the sort code and account number and allowed you to pay in straight away.

You just chose to wait until you'd received the letter.

missmuddy wrote: »

2. Various sites advertise that you can earn up to £125 with this account. ie. 5% of £2,500. But the gross interest rate is 4.89%. My understanding is thst if this interest is paid on the entire balance then at the end of 1 year the the AER rate will be equivalent to the gross... but they only pay interest on a max of £2,500 so interest added, won't earn any additional interest (if that makes sense?). If thats the case then its only possible to earn a maximim of £122.25 before tax. Is my understanding correct and is the 5% headline figure a bit misleading?

You are probably correct in that £122.25 is the maximum interest.

5% is still correct, since it compounds monthly - so if you have £1k in the account, you'll finish up the year with £1k+5%, not £1k+4.89%.

Gromitt

deutsch wrote: »

What happened to my interest last month? Any clues?
paid in £5.02 and took away £1?

Gross interest £5.02
Net interest £4.02.
Tax: £1 (20%)

Alex92_2

Just got off the phone to a manager at nationwide. Tried setting up 3 more flexdirect accounts. He said that interest is only paid on 1 account, I said yeah I heard that, but it seems that a lot of other people having been getting it on all 4.

He said that Nationwide had a HUGE blunder in their system because of it being the first month of the new account, it's all fixed now and they will only be issuing interest on ONE account from now on. He said i could still open up 3 more accounts if i wanted to, but would be utterly pointless as I would get no interest on it so would be best tucking it away somewhere else. Nice that he didnt suggest other nationwide products in particular.

For this reason, I will focus on filling up my 4% lloyds CV accounts from after April 5th when one of the £6K will take a hit to find the ISA for 13/14 year.

innovate

It always amazes me how the MSE massive seems to be able to kill off any significant loophole, mostly without realising that they are killing off the loopholes.

Don't even ask if you don't know what I am on about.

AlwaysLearnin

Alex92 wrote: »

For this reason, I will focus on filling up my 4% lloyds CV accounts from after April 5th when one of the £6K will take a hit to find the ISA for 13/14 year.

I'm sure you've got it covered Alex, but if you're talking about a 12/13 cash ISA then just make sure you won't be better off opening one that you can make multiple deposits to and building that up, keeping the full balance in the Lloyds 4%. Depends what you're after, but it's not clear cut that the ISA route would win in every situation.

le_loup

innovate wrote: »

It always amazes me how the MSE massive seems to be able to kill off any significant loophole, mostly without realising that they are killing off the loopholes.

Don't even ask if you don't know what I am on about.

Amongst it's many blessings, this is one of the real disadvantages of the Internet.

Alex92_2

AlwaysLearnin wrote: »

I'm sure you've got it covered Alex, but if you're talking about a 12/13 cash ISA then just make sure you won't be better off opening one that you can make multiple deposits to and building that up, keeping the full balance in the Lloyds 4%. Depends what you're after, but it's not clear cut that the ISA route would win in every situation.

Only having to take out a few grand, nothing too bad, but the ISA I want to use is fixed and not easy access, so for that reason its all good. Thanks for the heads up

AlwaysLearnin

Alex92 wrote: »

Only having to take out a few grand, nothing too bad, but the ISA I want to use is fixed and not easy access, so for that reason its all good. Thanks for the heads up

In that case keep in mind that the rate is teired. You can keep the 4% over £5k, so may be beneficial to skim the first £999 out of multiple accts instead of a couple of thousand out of one

johnmoney05

Alex92 wrote: »

Just got off the phone to a manager at nationwide. Tried setting up 3 more flexdirect accounts. He said that interest is only paid on 1 account, I said yeah I heard that, but it seems that a lot of other people having been getting it on all 4.

He said that Nationwide had a HUGE blunder in their system because of it being the first month of the new account, it's all fixed now and they will only be issuing interest on ONE account from now on. He said i could still open up 3 more accounts if i wanted to, but would be utterly pointless as I would get no interest on it so would be best tucking it away somewhere else. Nice that he didnt suggest other nationwide products in particular.

For this reason, I will focus on filling up my 4% lloyds CV accounts from after April 5th when one of the £6K will take a hit to find the ISA for 13/14 year.

Thanks for letting us know that there is a mistake on the system.

NW

Alex92_2

johnmoney05 wrote: »

Thanks for letting us know that there is a mistake on the system.

NW

Wasn't really the point of my post, was it. The point was that whatever error it was, it has now been fixed. I have just saved some of you interest on £7500 that you wouldve wasted by having it in there.