Nationwide Flex Direct - £1000 requirement

grumbler

noh wrote: »

The word used was "automated" ie not a manual payment.

A BACS credit is automated, a FP in is automated, a cash payment over the counter is not.

OK, let's make it perfectly clear:
The OP asked:

lycanmoon wrote: »

do I need to transfer an automated credit of £1000+ to qualify

The reply was:

Hazzanet wrote: »

A standing order is an automated credit.

Is it not obvious that if some "automated credit" was really needed, then a SO cannot qualify simply because the receiving bank (Nationwide) would see it just as an ordinary FP credit?

As YB suggested, the OP possibly meant a salary by BACS Direct Credit, that, if really required, couldn't be substituted by your 'automated' SO.

And no, an ordinary FP/BACs is not automated, although you can make it automated (debit) by setting up a SO.

lycanmoon

Thank you for all of your helpful responses.

By 'automated credit' I meant my salary being paid in - the Halifax Reward account seems to require this as part of their switching process, so I wondered if Nationwide did.

However based on your responses, I see that a Standing Order of £1000 will satisfy.

Thank you all again.

noh

grumbler wrote: »

OK, let's make it perfectly clear:
The OP asked:
The reply was:

Is it not obvious that if some "automated credit" was really needed, then a SO cannot qualify simply because the receiving bank (Nationwide) would see it just as an ordinary FP credit?

As YB suggested, the OP possibly meant a salary by BACS Direct Credit, that, if really required, couldn't be substituted by your 'automated' SO.

And no, an ordinary FP/BACs is not automated, although you can make it automated (debit) by setting up a SO.

I realise what the OP meant.

An automated credit as far as I am concerned is BACS or FP.

See:-
http://www.experian.co.uk/payments/glossary/automated-credit.html

Hazzanet

In response to the OP's question, and after a quick skim read of the T's and C's, they appear to remain silent on the £1,000 requirement. The rates and charges leaflet simply says that you need to "pay in £1,000" which could be interpreted as an automated credit such as SO/FP or cash/cheque via the cash machine (counter service isn't available with the account).

I pay in by SO and receive the 5%.

As an aside, the term "Automated Credit" was used against NatWest statement entries for any incoming computerised payment when I worked for them in the late 90s. This included the receipt of a payment sent as an SO from the payer. Not sure what the narrative is now they are on RBS systems.

pqrdef

lycanmoon wrote: »

The question I have is - do I need to transfer an automated credit of £1000+ to qualify for this or can I satisfy this criteria by just setting up a SO of £1000+ from one of my other (non-Nationwide) current accounts?

There are two quite separate qualifications - the 5%/free overdraft offer and the Quidco offer. Don't confuse them. You can have either without the other.

For the 5%/free overdraft you have to pay in £1000 a month from any external source, i.e. not another Nationwide account. Used fivers are fine. This isn't connected with any switching process.

For the Quidco, you have to switch an existing account. There has to be something to switch - at least two DDs. There doesn't have to be an income credit.

In trying to define what a switch is, some banks (notably Halifax) say you should switch the automated credits on your old account. But they can't do it for you and they can't enforce it.

By automated credits they mean those cases where your old account is registered somewhere else to have payments sent to it. That would be wages, benefits, maintenance, interest "paid away" etc. Also e-savings accounts that use a linked current account for withdrawals, etc. Anywhere that your old bank details are on record as a destination for BACS payments or FPs.

To do a complete bona-fide switch and abandon your old account, obviously you'd want to update all those things to pay to your new account. But as I say, they can't make you.

Jaxer

pqrdef wrote: »

There are two quite separate qualifications - the 5%/free overdraft offer and the Quidco offer. Don't confuse them. You can have either without the other.
.....
For the Quidco, you have to switch an existing account. There has to be something to switch - at least two DDs. There doesn't have to be an income credit.

Can I ask where it specifies the requirement for 2 DDs? I already have one flex account (not through Quidco or TCB) and was going to apply for a second for the Quidco offer. I have an old Halifax account that I don't use for anything so there's only 1 (inactive) DD set up on it. I can't see anywhere in the Quidco T&C's or on the Nationwide details saying the switch process has to cover 2 DDs. If this is the case, I'm going to have to set up something temporarily which is going to be a bit of a pain in the backside.

Glencoe

I understand that this account requires a monthly deposit of £1000 to return a gross rate of 5% pa on a maximum of £2500. Any balance above £2500 earns a zero rate. This means that I would have to deposit £12000 over the year to receive £125. Seems like a bad deal: £125 on £12000 is about 0.01%. Might suit those who can't calculate very well.

xylophone

You deposit £2500 into the account. You send over £1000 each month. You then send the £1000 out again to an interest bearing account. Job done!

DragonQ

Glencoe wrote: »

I understand that this account requires a monthly deposit of £1000 to return a gross rate of 5% pa on a maximum of £2500. Any balance above £2500 earns a zero rate. This means that I would have to deposit £12000 over the year to receive £125. Seems like a bad deal: £125 on £12000 is about 0.01%. Might suit those who can't calculate very well.

You misunderstand. You need to make sure £1000 is deposited each month but the money doesn't have to stay in there for any period of time. So just deposit £1000 and immediately remove it again, leaving £2500 in the account for maximum returns.

Kantankrus_Mare

Can anyone advise me please? I have had a flex account for longer than I remember which we use for everything. We have a £900 overdraft on this.

If I were to up grade to the new Flex Direct account, would this overdraft automatically go with it or would we have to set up a new one? and are all direct debits automatically transferred?

It won't make me loads but at some times of the month there is a fair amount in the account and I thought we may as well earn a little on it.