NW FlexDirect £1,000 needs to be in 24 hrs?

liamcov

Seen on another forum that someone put £1,000 in one morning then transferred it back out and didn't get the 5% interest that month.

He was told that the money had to stay in the account for at least 24 hours. Does anyone have any info about this?

DragonQ

Nope, I was told that it just needs to be a deposit and that's exactly what I've done with my accounts and have always gotten interest.

Gels

My 1k stays in the account for a few minutes before being moved to the next destination. No problems with interest being paid.

noh

My £1k stays there for less than a minute I have always got the 5%. I assume that person maintains a balance on which to earn interest?

richardmk

You earn interest each day on the balance in the account up to £2500. If you only keep a high balance for one day you would earn 1 days interest rather than for the month.
Halifax reward account by contrast lets rewards you £5 based on £1000 deposits being received in the month.

NowRetired

I have £2500 in my flex account and I transfer £1000 to my Halifax reward account then straight back to my flex account.


My Halifax account normally has a balance of 1p and I get my £5 every month along with my 5% interest in my flex account


One day before my 2 DDs are due I transfer the money in from my Vantage account.

robatwork

I leave mine in for a couple of days. Just don't trust banks' systems.

I have incurred an overdraft fee in the past (not from Nationwide) when paying in cash and withdrawing on the same day.

alanq

I would not expect to earn a day's interest on £1000 that was there for minutes. Having deposited the £1000 briefly I would expect 5%pa gross on the daily balance of the account for the month. I have always found that is what I get.

Archi_Bald

liamcov wrote: »

Seen on another forum that someone put £1,000 in one morning then transferred it back out and didn't get the 5% interest that month.

One day's FlexDirect interest on £1k would be something like 10p after basic rate tax. I know this is MSE, but surely nobody would seriously be chasing 10p a month.

shortcrust

liamcov wrote: »

Seen on another forum that someone put £1,000 in one morning then transferred it back out and didn't get the 5% interest that month.

He was told that the money had to stay in the account for at least 24 hours. Does anyone have any info about this?

Although it's clearly not the case, I understand why people worry about this (and similarly so with the Halifax reward account and so on). If it were true, many customers wouldn't be able to touch their pay for 24 hours! What a selling point, eh?! If you're using the NW account as a savings account it perhaps feels a bit underhand to pay in the 1000 and take it straight back about again. However, using a current account like that is actually pretty normal. Money comes in and money goes out - it's what they're designed for.

EDIT: I'd assumed the person in question had a significant balance in addition to the 1000 transfer. Could they really have expected a month's interest on money that was in their account for only a few minutes?!

liamcov

Archi_Bald wrote: »

One day's FlexDirect interest on £1k would be something like 10p after basic rate tax. I know this is MSE, but surely nobody would seriously be chasing 10p a month.

I meant that as the £1,000 funds did not remain in the account for 24 hours he claims he didn't get any interest on his £2,500 for the entire month.