New Nwide Flex 5% acct - upgrade queries

waterwatereverywhere

Hi,

Have just spotted this new account on the side bar on the main MSE site.

We have an ordinary Flex account. According to the Nationwide site there is an option to "upgrade" to this new FlexDirect account paying 5% interest.

They say that by upgrading you will lose any existing account benefits, e.g. the annual travel insurance.

This is the only drawback we've noticed. Please can anyone tell me if they are aware of any other drawbacks we haven't spotted.

As the insurance they give you is European only I think it would be better to take the 5% interest as a European only travel policy can be bought fairly cheaply. Does anyone disagree?

Many thx in advance.

BugsyBrowne

Another drawback is if you only put 2.5k in you'll only earn the same as you would with halifax or first direct.

grumbler

waterwatereverywhere wrote: »

Does anyone disagree?

I do. Why waste money on insurance if you can have both Flex and FlexDirect (and, with some extra efforts, Halifax and FD as well if you wish)?

Gromitt

The 5% only lasts a year, so why not just apply for the account, stick 2.5K in it, and then in 12 months when the rate drops to 1%, ask them to close it?

Leave your DDs/etc in your flex account - after all, why pay bills and withdraw cash from a interest paying account? Put them in an account that pays less, such as BoS, TSB or Santander.

The maximum interest you can get is £125 minus tax (£100), so its basically a £100 incentive.

waterwatereverywhere

Hi,

Thanks everyone for your replies. Sorry, I'm being very DIM. I didn't realise you could have both of the accounts I thought you could only have a Flex or a FlexDirect.

Will definitely look at this again. Even if we can't immediately put in the full £2,500 we could build up to putting that in and keep the Flex so we don't have to have the hassle of moving everything and, as you say, still keep the free travel insurance.

So glad I didn't just go on automatic pilot and push the "upgrade" button earlier today....

simax

Question:

If you upgrade from a FlexAccount to this FlexDirect plan do you still qualify for the 12 month fee-free OD?

MoneySaverLog

simax wrote: »

Question:

If you upgrade from a FlexAccount to this FlexDirect plan do you still qualify for the 12 month fee-free OD?

Yes, that's what they told me anyway

simax

Ooooo interesting.... Can't wait to see what their FlexPlus account will be like

dan.m1

Bit new to this forum, though I do read a bit. I'm tempted to apply for this, however I have a flex account which i am currently permanently in overdraft up to £1200. So I'm skeptical that they would allow me to transfer to the direct as they would receive less fees, and it would look bad on my credit rating? If anyone could advise if I should apply or not.

I'd like to cut out my O/D fees as I'm cutting back on all expenditure, and this must tot up to £100 per annum!

richardmk

When the account upgrades all of the transaction history is lost so you can no longer search from transactions. They are still however available on the PDF sheets. A advantage is that the full statement is in real time as well as the mini statement, so you get to see who the Direct Debits are for etc which is much better

simax

Am I right in thinking that the card number at the start is different on Flex Direct cards?

4543 xxxx - FlexAccount Offline Visa Dibit
4751 xxxx - FlexDirect Visa Debit (Offline too?)

Wonder what that's all about....