Nationwide FlexDirect Question

MrSilk

Can I transfer the same £1,000 in and out twice each month to get 5% on £2,000?

Sorry may seem a stupid question but I'm not sure

richardmk

You would need to keep a permanent balance of £2500 to get maximum interest. If you had £2000 in the account for 1 day you would only receive 1 days interest which would be pence....

MrSilk

Thank you!

ermine

If you read the Ts and Cs it's important to make sure the other account isn't with Nationwide.

I will transfer £2500 into the account on opening and then set up a standing order to xfer £1000 in from another bank. And a SO at Nationwide to xfer the same £1000 back to the other bank after a couple of days, since NW gaive you 0% interest on any amount over £2500, at least the other bank gives 1%

Barmy, ain't it, but if that's what has to happen to get 5%, that's what's got to happen...

MrSilk

So it doesn't matter how long the cash is in the account tog et the full 5%?? :cool:

Hominu

As long as you transfer at least 1K in, you can withdraw it again within seconds and you'll get 5% on upto 2.5K of the balance on a daily basis and paid monthly.

MrSilk

Hominu wrote: »

As long as you transfer at least 1K in, you can withdraw it again within seconds and you'll get 5% on upto 2.5K of the balance on a daily basis and paid monthly.

Thanks Hominu for clarifying. Much appreciated!

macman

Hominu wrote: »

As long as you transfer at least 1K in, you can withdraw it again within seconds and you'll get 5% on upto 2.5K of the balance on a daily basis and paid monthly.

Isn't the interest calculated on a daily basis, but overnight? So if you deposit and withdraw on the same day, you'd earn no interest? Though it all seems a bit academic, as one day's interest at 5% on £2,500 would be about 34p.

Sensory

ermine wrote: »

I will transfer £2500 into the account on opening and then set up a standing order to xfer £1000 in from another bank. And a SO at Nationwide to xfer the same £1000 back to the other bank after a couple of days, since NW gaive you 0% interest on any amount over £2500, at least the other bank gives 1%

Why after a couple of days? If the other account was a Vantage account, you'd be losing out on interest.

macman wrote: »

Isn't the interest calculated on a daily basis, but overnight? So if you deposit and withdraw on the same day, you'd earn no interest? Though it all seems a bit academic, as one day's interest at 5% on £2,500 would be about 34p.

If the balance at the start of the day is £2500, and the balance at the end of the day is £2500, and during the day £1000 is withdrawn/deposited, it shouldn't make a difference.

Vortigern

MrSilk wrote: »

So it doesn't matter how long the cash is in the account tog et the full 5%?? :cool:

I wouldn't put it that way. There has to be £2500 in the account for the whole month to earn the maximum amount of interest. You must also pay in £1000 each month to qualify for any interest. You can transfer the £1000 out immediately if you wish, but you'll only earn interest on the money that stays in the account.

You-kip

macman wrote: »

Isn't the interest calculated on a daily basis, but overnight? So if you deposit and withdraw on the same day, you'd earn no interest? Though it all seems a bit academic, as one day's interest at 5% on £2,500 would be about 34p.

34p a day interest on £2.5k where do sign:o