5% FlexDirect clampdown?

IGetMoney

Just had the dreaded letter drop on the doormat this morning.

Now to decide where to move the money the total of £7,500 from 3 of my accounts in two months time.

I will probably make the move to Santander, already have a couple of savings accounts with them. Oh well, N/Wide's loss of business.

YorkshireBoy

IGetMoney wrote: »

Oh well, N/Wide's loss of business.

Not sure how you draw that conclusion?

Their operating loss on your account(s) will be less if they *don't* have you as a customer!

But before you jump ship, did you take any O/D facilities with them? If so, consider removing that value, along with your own £7.5K, and save that somewhere else until the year's up. That's what I'm doing for the next 5-6 months with my additional two accounts (and might even do it with the 3rd account).

IGetMoney

YorkshireBoy wrote: »

Not sure how you draw that conclusion?

Their operating loss on your account(s) will be less if they *don't* have you as a customer!

But before you jump ship, did you take any O/D facilities with them? If so, consider removing that value, along with your own £7.5K, and save that somewhere else until the year's up. That's what I'm doing for the next 5-6 months with my additional two accounts (and might even do it with the 3rd account).

I think I will move all my business to Santander, I have a Santander mortgage, so by moving all my bills there, and closing N/wide down, they'll be one customer down, I know I don't really give them any income, but with around £35k of my money, they would be making some money from using my money.

I didn't take the O/D options on any of the accounts, I thought it would have a negative effect on my credit rating.

Voyager2002

frank777 wrote: »

Not had my letter yet, not a big deal, new account in place for when the other one reaches 12 month. Does anyone know how strict they are about the FlexAccount with Free European multi-trip travel insurance. If I open one and just pay in £1,000 a month and leave a £10.00 balance would I still qualify for free insurance?

The free travel insurance is offered on a completely different account from the 5 per cent interest: be sure not to confuse them.

You get the free insurance so long as you meet the exact conditions they state. The web page also states that you will only be insured once you get the certificate of insurance: however, I never received this but it turns out I am covered at the moment (I telephoned them to confirm this before travelling). The golden rule has to be: read the small print and check. Although the value of Europe-only insurance is so low that it probably makes more sense just to buy insurance if you need to travel rather than messing about.

Voyager2002

IGetMoney wrote: »

I think I will move all my business to Santander, I have a Santander mortgage, so by moving all my bills there, and closing N/wide down, they'll be one customer down, I know I don't really give them any income, but with around £35k of my money, they would be making some money from using my money.

I didn't take the O/D options on any of the accounts, I thought it would have a negative effect on my credit rating.

Remember that (at least in my experience) Nationwide offers rather good customer service, while Santander is diabolical. I suggest that you keep open one of the Nationwide accounts, and use them, rather than Santander, for your routine banking.

(I don't see any reason to punish them for this clamp-down: obviously they were losing money on the 5 per cent which is why they limited the balance on which they would pay it. People who "abused" this by opening multiple accounts are being treated generously since they are being given two months notice, and I think this is more than fair.)

apt

I don't think anyone can complain about Nationwide finally getting round to enforcing its T&Cs as the 5% was always supposed to be limited to one account. I wouldn't simply close down any surplus Flex Direct Accounts. If you can't use them for a 0% overdraft or conversion to the Flex Account with free insurance (also useful for worldwide as the upgrade is cheap) they can be used for transfer offers like £100 from Halifax or cashback via Topcashback etc. for opening a Santander 123 account.

Archi_Bald

Voyager2002 wrote: »

(I don't see any reason to punish them

Why does anyone think Nationwide would feel punished if someone closes an account that would have cost Nationwide money? If anything, they'd be delighted to see the back of such customers.

ColdIron

Don't forget that 4% of the 5% is a one year bonus so from March onwards we would all need to find a new home anyway

typistretired

Voyager2002 wrote: »

People who "abused" this by opening multiple accounts are being treated generously since they are being given two months notice, and I think this is more than fair.)

I think your use of the word "abused" is being unfair as Nationwide stated you could open 4 accounts.

eskbanker

typistretired wrote: »

I think your use of the word "abused" is being unfair as Nationwide stated you could open 4 accounts.

They still do, that hasn't changed! See http://www.nationwide.co.uk/current_account/flexdirect/FAQs.htm

Can I open more than one FlexDirect account?

You can open up to four Nationwide current accounts. However, under the terms and conditions of this account: customers are only entitled to one promotional credit interest rate of 5% AER. The only permitted exception to receive more than one promotional rate is if the additional account is held in joint names.

Any additional FlexDirect accounts held or more than one joint account held by you and another customer will result in the credit interest rate being reduced from 5% to 1% within 3 working days of the account being opened.