Flexdirect nationwide

jblakes

Morning

I have got around 1.5k saving at the minute and am looking to save 500 a month. If i stick the 1.5k in fd nationwide and then cycle 1k from my halifax account each month, would this meet the needs to get the 5% interest. It looks like it should i am just checking. Also is that the best way to do it and then find another current account to stick my 500 a month in?

Mean i think i will get the £5 from halifax and then 125 over the year for nw unless im missing something.

thanks in advance

James

apt

Yes just cycle £1000 from Nationwide to Halifax and back once a month. Once you've reached the £2,500 limit at Nationwide TSB plus pays 5% on upto £2,000.

jblakes

thanks for you reply. Just another question do i need to leave the 2.5k in there all the time to get the full amount (5%) if so would it not be better to open it once i have 2.5k saved?

thanks James

Yorkie1

I think you get 5% on any balance up to £2500 for the first 12 months in the NWide Flexdirect. But as you don't get interest as such on the Halifax, keep the balances up in the NWide and just comply with the Halifax T&Cs (£750 credit & 2 live DDs for the standard reward).

I do this: I put £750 into my Halifax account via standing order, and then remove about £725 a few days later via standing order. This allows for the 2 DDs I have coming out from it, and takes the £5 reward with it. The ongoing balance is about £30.

As for NWide, I have £2500 balance in there, and manually credit it with £1K per month, and immediately remove the £1K plus the previous month's interest. This goes back into my Vantage account at 3%.

jblakes

thats whats i thought. Thank you very much

planteria

jblakes wrote: »

Morning

I have got around 1.5k saving at the minute and am looking to save 500 a month. If i stick the 1.5k in fd nationwide and then cycle 1k from my halifax account each month, would this meet the needs to get the 5% interest. It looks like it should i am just checking. Also is that the best way to do it and then find another current account to stick my 500 a month in?

Mean i think i will get the £5 from halifax and then 125 over the year for nw unless im missing something.

thanks in advance

James

yes, that will work. but you need to get the balance up to a consistent £2,500 to earn the full £125 over the year.

planteria

Yorkie1 wrote: »

I do this: I put £750 into my Halifax account via standing order, and then remove about £725 a few days later via standing order. This allows for the 2 DDs I have coming out from it, and takes the £5 reward with it. The ongoing balance is about £30.

As for NWide, I have £2500 balance in there, and manually credit it with £1K per month, and immediately remove the £1K plus the previous month's interest. This goes back into my Vantage account at 3%.

very similar with me, but i move £1k, leave £40 behind in HR accounts, and don't use a Vantage account...i cycle it through Santander123 account too.

Archi_Bald

Unless you are a not a tax payer and have filled in an R85, you will only see £100 since like all other providers, Nationwide will automatically withhold 20% tax on the interest.

The monthly Halifax fiver is already net of the 20%, and I believe it is not possible to get it paid gross, even with an R85.

ad10

Hi guys,

I've been trying to follow the MSE guide to in-credit current accounts as ISAs are not making me any money. I recently signed up to Nationwide's FlexDirect Account and put £2500 into the account last month. When I checked my account today, I was only given £2.05 and £0.41 was deducted for tax.

When I called prior to opening the account, I was assured that all I would need to do is put between £1000 and £2500 into the account and as long as it can be seen that the money was transferred in at some point in the month, I would gain the interest on the last day of the month. As well as this the FAQ page on the website, also states that I would receive the interest monthly.

When I called today, I was told the amount I had been given as interest was correct as the 5% would average out across the year, she didn't seem to make sense.

Am I being thick here? The amount I have received would not add up to the £125 expected to receive by the end of the year.

Archi_Bald

You will get interest on the amount you have in the account. If you have £2,500 in it every day of the year, and pay in £1,000 a month, you will make £125 or thereabouts before tax over the year. After basic rate tax, withheld automatically, it is around £100.

How much did you have in the account for how long?

YorkshireBoy

ad10 wrote: »

I recently signed up to Nationwide's FlexDirect Account and put £2500 into the account last month. When I checked my account today, I was only given £2.05 and £0.41 was deducted for tax.

If you'd had the money in the account for the whole of March you'd have received...


£2,500 x 4.89% / 365 x 31 x 0.8 = £8.31 (net of BR tax)


Suspect you funded part way through the month (and not all in one go because I can't make your numbers add up!)?