Nationwide FlexDirect

LisaJane

Hello,

I was wondering if you could help? I am having a look at where I can earn some extra money through bank accounts/ISA's etc including looking at new ISA options for 2014/2015 and I came across the Nationwide FlexDirect.

I currently work mainly from my Halifax account which gives me £5 per month and have the Clarity credit card attached which also gives me £5 per month. I am very happy with both. However, do you think it would work for me to continue to get my salary paid into my Halifax account to receive the £5 but then move £1000 per month into a Nationwide FlexDirect account? I am imagining that most of the time I would have to move this £1000 straight back out again, but my plan would be to maintain £2,500 of my savings in that account for at least the promotional period.

Do you then get paid the 5% interest each month? Does anyone see any flaws in this plan??

Fruit_and_Nut_Case

I think you will find many forum members who do just that.

dr_adidas01

Yup I do just that!!!

matttye

Just got approved for a FlexDirect account and I'll be doing that too.

My plan is:

* Deposit £2,500 in FlexDirect immediately.
* Move £1,000 from FlexDirect > Santander (my main current account) on payday by Standing Order.
* Move £1,000 from Santander > FlexDirect on payday by Standing Order.

That way the balance will be maintained at £2,500 automatically each month and I won't have to do anything.

ceredigion

matttye wrote: »

Just got approved for a FlexDirect account and I'll be doing that too.

My plan is:

* Deposit £2,500 in FlexDirect immediately.
* Move £1,000 from FlexDirect > Santander (my main current account) on payday by Standing Order.
* Move £1,000 from Santander > FlexDirect on payday by Standing Order.

That way the balance will be maintained at £2,500 automatically each month and I won't have to do anything.

you need to move £1000+the interest out of the nationwide account and you don't get 5%

innovate

Don't rely on SOs to always happen on the same day. Weekends can cause havoc. Although you probably won't miss £1K in the FlexDirect if there is any unplanned delay of the money coming in, will there be a potential issue on your 123 if the £1K goes out by the salary hasn't yet landed? You got a whole month to deposit the £1K into the FlexDirect, so no point pushing it through on what is normally payday.

Also, you don't want to leave the monthly interest in your FlexDirect since it will earn no interest there, but probably will in your 123. So you have to do some manual skimming each month. Could you do the £1K shuttling at the same time? Worth remembering though that the weird Santander fraud rules might hold up a £1K payment to a new-ish payee, so it may not be a job you can complete inside 5 minutes.

Not sure they will, but these rules might also mess you about on the standing orders. Nothing to really worry about because the money will get shuffled alright, it's just a question of how quickly.

ceredigion

LisaJane wrote: »

Hello,

I was wondering if you could help? I am having a look at where I can earn some extra money through bank accounts/ISA's etc including looking at new ISA options for 2014/2015 and I came across the Nationwide FlexDirect.

I currently work mainly from my Halifax account which gives me £5 per month and have the Clarity credit card attached which also gives me £5 per month. I am very happy with both. However, do you think it would work for me to continue to get my salary paid into my Halifax account to receive the £5 but then move £1000 per month into a Nationwide FlexDirect account? I am imagining that most of the time I would have to move this £1000 straight back out again, but my plan would be to maintain £2,500 of my savings in that account for at least the promotional period.

Do you then get paid the 5% interest each month? Does anyone see any flaws in this plan??

no 5%- tax per annum

innovate

ceredigion wrote: »

you need to move £1000+the interest out of the nationwide account and you don't get 5%

Not sure whether you were meant to say "and you don't get 5%"?
Only thing 5% won't get pay on is the interest if the £1K arrives every month.

ceredigion

in fact you don't even get that because the 5% is based on compound interest

londonice

This set up takes warming up like innovate says, I've pretty much highlighted this same thing in my post, where transferring to gain the benefit of each bank requires cycling the money through each account.


lookup post 64869295


It's like conducting an orchestra in a way, you need to make sure everything is in place, ensuring all the dates of your transfers will permit you to perform this without penalty.

matttye

ceredigion wrote: »

you need to move £1000+the interest out of the nationwide account and you don't get 5%

Good point!

1008.33.

innovate wrote: »

Don't rely on SOs to always happen on the same day. Weekends can cause havoc. Although you probably won't miss £1K in the FlexDirect if there is any unplanned delay of the money coming in, will there be a potential issue on your 123 if the £1K goes out by the salary hasn't yet landed? You got a whole month to deposit the £1K into the FlexDirect, so no point pushing it through on what is normally payday.

Also, you don't want to leave the monthly interest in your FlexDirect since it will earn no interest there, but probably will in your 123. So you have to do some manual skimming each month. Could you do the £1K shuttling at the same time? Worth remembering though that the weird Santander fraud rules might hold up a £1K payment to a new-ish payee, so it may not be a job you can complete inside 5 minutes.

Not sure they will, but these rules might also mess you about on the standing orders. Nothing to really worry about because the money will get shuffled alright, it's just a question of how quickly.

Ill probably send the money both ways on the 1st of each month, given that thats when interest is paid on FlexDirect. Unless you can see any problems with that?

If my payday (28th) falls on a weekend I get paid the weekday before so I can't foresee any problems.