FLEX DIRECT OVERDRAFTS x 4 ARE FREE FOR 1 YEAR

a&akay

Response to email.

Thank you for your message.

I can confirm that all your FlexDirect's overdraft are £900.00 and that they are free for the first year.
I would like to thank you for contacting us. If you need anything else please reply to this message.


Regards,


Customer Consultant
E contacts
Customer Service and Operations
http://www.nationwide.co.uk

Alex92_2

Should probably edit out her name to be fair.

YorkshireBoy

Alex92 wrote: »

Should probably edit out her name to be fair.

Won't be a real name. a&akay has just made it up for here. Nobody would identify themselves by quoting the name of the CSA dealing with their enquiry. Would they?

a&akay

Alex92 wrote: »

Should probably edit out her name to be fair.

Done. I've kept a screenshot of the reply in case they charge me the fees. I'm still not convinced that you can't have £2.5k in each so I loaded 3 up to £100 for a few days to see if they attract interest before going to -£900 on them. I've also annoyingly found that Santander on their 123 are holding back on £1k FPs to FlexDirects till the next day, even though £1 goes instantly. I'm trying via Barclays to see if theirs go FP. Sent £1 test OK but Barclays then held off on the following £1k till the 19th, so cancelled that. Transfers from my Santander Saver of £4k go to Barclays by FP OK. Bit of a faff on my £1k recyclings at the start of every month.

YorkshireBoy

a&akay wrote: »

I've also annoyingly found that Santander on their 123 are holding back on £1k FPs to FlexDirects till the next day, even though £1 goes instantly.

Standard practice with Santander. The first (sizeable) payment always goes next day (following so-called 'security checks'). Future payments to existing payees always go instantly in my experience, so you shouldn't have a problem next month.

a&akay

YorkshireBoy wrote: »

Standard practice with Santander. The first (sizeable) payment always goes next day (following so-called 'security checks'). Future payments to existing payees always go instantly in my experience, so you shouldn't have a problem next month.

I've already sent £1k to load each account when I opened them and the second today didn't, we'll see.

Wammer

Despite having access to a £3000 overdraft on the FlexAccount for years, which I only applied for as they were offering preferential rates, I have never used an overdraft in my life and have no idea how they work.

I understand that they normally charge you either a flat daily rate or a percentage of the amount you take out of your account, but don't have funds for.

How is the overdraft on the FlexDirect account beneficial, apart from being fee free for the first year?

If you put £2500 into the account to get the maximum 5% interest, how can you also be overdrawn on the same account?

Perhaps I have missed something and some people have one account with £2500 in it making interest and another one with no funds which they then withdraw money from to take advantage of earning interest elsewhere while not paying fees?

I am quite astute with money and have all the interest paying current accounts such as LTSB Vantage, Halifax Rewards and now the Flex Direct, but I am clueless regarding overdrafts and have always regarded them as something to be avoided at all costs.

Thanks

YorkshireBoy

Wammer wrote: »

Perhaps I have missed something

I think you've grasped it perfectly.

There will be some people who will shift savings out of savings accounts elsewhere and deposit them here for the 5%. These people will not be interested in overdraft facilities. These people will be making a return of around 3% AER gross on their own money (because they should already be making at least 2% AER gross)

There will be others who, on getting large overdraft facilities, will ignore the 5% in credit rate and withdraw the entire overdraft facility to deposit elsewhere for a year. These people will still be making 2% on their own money (see above), but will now be also making 2% on Nationwide's money...therefore 4% in total.

I fall into the second camp, being as I'm still stoozing a £10K Santander overdraft facility against my offset mortgage (borrowed at 2%, but getting a 3.75% return).

Wammer

Thanks for that. It was the mention of taking out an overdraft among the same posts as depositing £2500 that confused me.

a&akay

Totally accept that this account is confusing. I now have 5 FlexDirects, 4 new ones, applied for before converting my existing Flex to FlexDirect, which is also now showing online.

The 4 new ones are now 1 - £2.5k in credit. 2-4 -£900 as reflected in an email received that all 4 will not attract an overdraft fee for a year. So I should, as a non taxpayer, receive 5% on 1 and the best return I can get over the year on the £2700 overdraft since transferred to my current best saver account. This is 3.2% on a Santander Saver due to expire in June. After that it's probably Lloyds Vantage as long as I recycle £1k a month into each and cream of the interest over £5k. I've no idea if 1 is the one that will get the 5%. It may be all 5, one of the others, or none. I'll complain if so. If all 4(5) I'll load them all to £2.5k next month and cream off the interest after it shows, remembering to pay in the required £1k a month to each.

My converted Flex has an overdraft of £1600 but I'm loath to transfer all that to my saver until I know where I stand. I've left that at -£11 for a day to see if attracts the 50p a day fee for being overdrawn. If it doesn't I'll be tempted to transfer it to my best saver for just under the year as with the others.

ceredigion

I'm quite accustomed to playing around with my assets to achieve the best possible rates.
However you really are playing with fire. Good luck to you. BUt be prepared to get your fingers burnt.