Nationwide FlexDirect 5% incredit interest

Jakestar

I currently have a Nationwide standard bank account but have just seen the FlexDirect with it's 5% offer.

I currently have 14k I need to decide where to save for the next 12 months, before I purchase a property. For various reasons I would like to keep my existing bank account.

The Flex Direct requires external payments of at least £1000 per month.

My question is this: Could I do the following or would Nationwide a) identify it and b) get annoyed about it:

1. Set up a FlexDirect Account as an additional account to my existing current account
2. Transfer £2500 into FlexDirect account
3. Set up monthly standing order from another (non nationwide) account for £1000 into FlexDirect
4. Set up a standing order from the FlexDirect account into the non nationwide account funding the account (i.e. a circle that is looping £1000)

Is this allowed?

That would give me 5% interest on £2500 (£125 for the year) using £3500 of my savings (2500 stationary in the account and the 1000 going into and out of both accounts) (the £125 interest earned works out as 3.6% of the £3500 used to accrue it) which is a better rate than the other easy access savings accounts currenty (2%).

The rest of my savings will go in maxing next years isa and then the highest (currently 2%) easy acces savings account.

Seems logical to me!

grumbler

Nationwide FlexDirect - 5% interest, free overdraft - it's on the first page BTW.

Gordon_the_Moron

Yes you can do this and you will not earn 3.6% on £3500, you will earn 5% on £2500, the other £1000 does not need to be in the account all month and while it isn't it can be earning interest (albeit probably at a lower rate) elsewhere.

I'm doing exactly the same as you, except I will be doing the transfer manually as I do on the 1st of every month. £1500 goes from Santander (my actual current account), Halifax (for £5 reward), First Direct (to avoid fee and get regular saver) Nationwide (previously to get Flexclusive accounts, now for this too!), Lloyds TSB for Vantage 4% offer back to Santander.

Before someone points out that apart from First Direct none of them require a £1500 pay in (it will be reducing to £1000 shortly) its easier to pay the lot from one to the next to the next to the next without changing amounts.

This sounds complicated but actually takes me about 7 minutes to do, and for it I get.

2 regular savers paying 6% interest each.
An instant access ISA paying 4.25%
4% interest on £6000
5% interest on another £2500
£5 free cash each month.

Jakestar

Cheers chaps shall get this sorted :-)

Like the idea of linking a few current accounts.

And apologies for not searching first, it was faily obvious once I looked through the forum that this has bene discussed in detail already...

chili1496

i have just opened a nationwide account, so am i right in thinking the £100 does not have to stay in the account for any long period of time in order to gain the interest?

ie could i transfer £1000 on the 1st of each month into the nationwide then transfer it back to another bank on the 2nd and just keep doing this monthly?

10_66

chili1496 wrote: »

i have just opened a nationwide account, so am i right in thinking the £100 does not have to stay in the account for any long period of time in order to gain the interest?

ie could i transfer £1000 on the 1st of each month into the nationwide then transfer it back to another bank on the 2nd and just keep doing this monthly?

You can transfer the £1,000 out straight away, no need to keep it in overnight if you don't want to.

Gordon_the_Moron

chili1496 wrote: »

i have just opened a nationwide account, so am i right in thinking the £100 does not have to stay in the account for any long period of time in order to gain the interest?

ie could i transfer £1000 on the 1st of each month into the nationwide then transfer it back to another bank on the 2nd and just keep doing this monthly?

Guessing £100 is a typo but just in case, it is £1000!

You can transfer it in using faster payments on 1st month and transfer it out again the 1 minute later if you feel so inclined.

I've got an ISA with Nationwide, a regular saver and now a Flex Direct. The two savings account show the interest rate when you load the page, should the Flex Direct do the same? It doesn't!

The reason I ask is it isn't a new account, its an old Flex Account which I've converted so not sure if I'm earning interest yet or not. I've had a text from them saying it is done but just wondering :cool: