Nationwide flex account 5% interest one

matttye

YorkshireBoy wrote: »

Two questions:

1. How much are you making on your savings at the moment?

2. How long, in it's current guise, do you think the account will be available for?

I'm not sure. I was putting my savings into a lloyds isa that will get its interest in April, not expecting much from that at all. The most I've had in it is £1500. I've never taken saving very seriously as I still live at home with parents, but now I want to move out and get a mortgage.

I moved my savings from my isa into a lloyds account with vantage as its higher interest.

Can put away £700/per month (at least). I suppose I would make more money putting that into the 5% nationwide account immediately than by putting it in my 2% lloyds account (goes up to 3% once I have sufficient funds)

Edit: to answer your second question, it would take me three months to save up enough to fill the nationwide account. Absolutely no idea if it will still be around then!

YorkshireBoy

matttye wrote: »

I suppose I would make more money putting that into the 5% nationwide account immediately than by putting it in my 2% lloyds account (goes up to 3% once I have sufficient funds)

Yes you would. ISAs are good for long term saving, because the interest is shielded from the tax man. However, you're not saving long term because you're planning on getting a mortgage. The objective has to be to maximise the return on your money, and 5% (4% after BR tax) will take some beating.

Absolutely no idea if it will still be around then!

So wouldn't it be a good idea to get it now while you can?

matttye

YorkshireBoy wrote: »

Yes you would. ISAs are good for long term saving, because the interest is shielded from the tax man. However, you're not saving long term because you're planning on getting a mortgage. The objective has to be to maximise the return on your money, and 5% (4% after BR tax) will take some beating.So wouldn't it be a good idea to get it now while you can?

Yes point taken! Thanks

chili1496

ok then so if i deposit £2.5k on monday into nationwide leave it in there for 1 day then shift it back to may other bank i will get the 5% interest from nationwide for this simple transaction?

matttye

chili1496 wrote: »

ok then so if i deposit £2.5k on monday into nationwide leave it in there for 1 day then shift it back to may other bank i will get the 5% interest from nationwide for this simple transaction?

You'll get 5% interest for one day, not for the whole month.

Interest is calculated daily, so you'll only get interest for each day you have money in the account.

To satisfy the deposit criteria you can put in £1k and then move it immediately to another account.

So the best way to operate this would be to put £2.5k in the account, then deposit £1k each month and then immediately move the £1k to another account which operates as your main current account (i.e. where you expenses go out each month). Then just let the £2.5k sit in the Nationwide account accruing interest.

You can do this with multiple accounts, but only one Nationwide FlexDirect account attracts 5% interest.

matttye

YorkshireBoy wrote: »

Yes you would. ISAs are good for long term saving, because the interest is shielded from the tax man. However, you're not saving long term because you're planning on getting a mortgage. The objective has to be to maximise the return on your money, and 5% (4% after BR tax) will take some beating.So wouldn't it be a good idea to get it now while you can?

Got declined, most likely because of what I posted here: https://forums.moneysavingexpert.com/discussion/4508387

I'll try and get that resolved before I do anything else.

chili1496

matttye wrote: »

You'll get 5% interest for one day, not for the whole month.

Interest is calculated daily, so you'll only get interest for each day you have money in the account.

To satisfy the deposit criteria you can put in £1k and then move it immediately to another account.

So the best way to operate this would be to put £2.5k in the account, then deposit £1k each month and then immediately move the £1k to another account which operates as your main current account (i.e. where you expenses go out each month). Then just let the £2.5k sit in the Nationwide account accruing interest.

You can do this with multiple accounts, but only one Nationwide FlexDirect account attracts 5% interest.

ah right i have it now so in theory to get the max benefit i need to play with £3.5k in all.
what can i expect to get back for the year?

shortcrust

chili1496 wrote: »

ah right i have it now so in theory to get the max benefit i need to play with £3.5k in all.
what can i expect to get back for the year?

Can you not just have £2,500 in the account and move £1,000 out and back in once a month?

page1

Ok i have deposited £2500 in flexdirect today. I am planning to leave that in there but move £1000 in and out every month.

The question is shall i deposit £1000 pound today or tomorrow?

anna42hmr

page1 wrote: »

Ok i have deposited £2500 in flexdirect today. I am planning to leave that in there but move £1000 in and out every month.

The question is shall i deposit £1000 pound today or tomorrow?

you wont need to pay in today or tomorrow. as long as you pay £1k+ in during a month you get the interest. therefore if you intend to leave the 2.5k in the account, you only need to move the next £1k in and out next month - i.e april, as your 2,500 payment more than covers the minimum funding for march.