Nationwide FlexDirect Debit Interest?

MoneyInTheBank

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innovate

MoneyInTheBank wrote: »

Hi,

I have recently opened this account and appear to be incurring some kind of monthly interest/charge. I just wondered if this was correct as I find this rare amongst current accounts?

Thanks

Are you sure it is a FlexDirect? What charges have been made? Are you / have you been overdrawn? Do you have an agreed overdraft?

AndyPK

They do an account above that one which has a monthly charge.

MisterMotivated

Sorry if this sounds patronising but, are you confusing the tax on credit interest? The statement normally shows credit interest added, then tax deducted. Both these entries are listed as "interest/charge"

YorkshireBoy

MoneyInTheBank wrote: »

Maybe it is the tax on credit interest, but normally it is just deducted off the credit interest and only the credit interest is applied if that makes sense?

If you multiply the interest received by 0.2 does that give you the debited sum you're querying?

As you've no doubt realised, not all banks display the information in the same way...

Some just give you a net value with no detail of tax deducted.

Some give you a net value and then show you what the tax was, but it isn't used in the statement IYSWIM? (Derbyshire NetSaver?).

And some do as it seems Nationwide have done with you.

MisterMotivated

MoneyInTheBank wrote: »

Maybe it is the tax on credit interest, but normally it is just deducted off the credit interest and only the credit interest is applied if that makes sense?

Yes that makes sense, but I have the same account and for some reason Nationwide show total interest as a credit then show the tax separately as a debit below. Multiply your interest figure by 0.2 (not 0.8) and see if it matches the charge.