Nationwide FlexDirect Account

I just noticed on the FlexDirect account terms:
5.00% AER (4.89% gross p.a.) in-credit interest on balances up to £2,500 (fixed for the first 12 months)

with the ongoing rate at only 1% AER after this period.

I just checked and next month should be my 13th month so I wouldn't be due the 5% interest rate but will have to wait and see...

With this in mind, I was thinking of changing to the FlexPlus account which gives 3% AER but you get a load of other goodies with it too (which aren't essential for me but a nice to have). Would anyone else go for this or is there a better savings account at the moment?

P.S. I tried to post a link but I'm not allowed as I'm a new user but the deal can be found on Nationwide's own website :)

Comments

  • 1jim
    1jim Posts: 2,663
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    Doesn't this account charge £10 a month?

    So, in answer to your question, should you go for it....well that depends on if you need the extra packaged products,

    If you do and believe £10 is good value a month for the benefits and the interest is good then go for it
    If you feel £10 isn't good value, or you can buy the products separately cheaper, or you don't need them, or you can get same/better interest elsewhere then don't go for it

    Have you looked into the Lloyd's vantage accounts? Or what about accounts that give you cash for switching, or both?
  • 1jim
    1jim Posts: 2,663
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    You mention waiting and seeing, what do you hope to see?

    If nationwide have said they pay 5% for 12 months and then 1% thereafter, them all you will see is your rate drop to 1%
  • I don't remember seeing the condition about the rate dropping to after a year when I switched initially so I'm hoping maybe that it doesn't apply to me, hopeful thinking but you never know!

    Yes you're right it's £10. So by my rough calculation that's net cost of £45 after interest
    OR
    £25 that I earn if I keep it in 1% interest.

    The £45+25 cost is about breaking even with my current breakdown cover and I'd effectively be getting the other benefits for free...Decisions, decisions!

    I'll check out the Lloyds vantage accounts in the mean time. Thanks for your input
  • Gromitt
    Gromitt Posts: 5,063 Forumite
    I don't remember seeing the condition about the rate dropping to after a year when I switched initially so I'm hoping maybe that it doesn't apply to me, hopeful thinking but you never know!
    I opened the account in March and I've just received the letter saying my rate will drop in line with the terms and conditions to 1% on February 28th next year.
  • anotheruser
    anotheruser Posts: 3,485
    First Anniversary Name Dropper First Post I've been Money Tipped!
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    Do they not provide this account anymore?
    Why not just close [the original account], then re-open another one a month later?
  • Or open a joint account if you can as you are allowed one sole and one joint account.
    "Look after your pennies and your pounds will look after themselves"
  • innovate
    innovate Posts: 16,217
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    Do they not provide this account anymore?
    Why not just close [the original account], then re-open another one a month later?

    They do still offer it but if you read the T&Cs, you will see they won't pay you 5% if you already had one of these accounts within the last 12 months - unless you have not yet had a joint account, in which case, you would be able to get the 5% AER on a new joint account for 12 months.
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