Nationwide Flex Direct Monthly Interest

sopranolmu

Hi everyone,

I opened the FlexDirect several months ago. I don't pay tax, and keep the full amount permitted in it permanently. The £1,000 prerequisite gets transferred in and back out again a few days later in order to satisfy the terms so I can get the interest.

I presume lots of you do the same Can I ask, what the monthly interest amount in cash is? I've had a similar amount a couple of months on the trot, and it seems really high for a current account?

Not that I'm quibbling, but I'm an honest person - if they've given me too much money, I want to set it straight.

TIA. :j

YorkshireBoy

For a full £2.5K balance the gross interest is calculated as:

£2,500 x 4.89% / 365 x n

Where n is the number of days in the calendar month.

So December's should have been £10.38
Was it?

YorkshireBoy

sopranolmu wrote: »

The £1,000 prerequisite gets transferred in and back out again a few days later

Why?......

sopranolmu

Thanks, YorkshireBoy! That's what I thought, it just seemed too high for interest! Yes, £10.38 was what I've received for the last few months. Marvelous.

I transfer the £1,000 back out, as you don't get interest on anything over £2,500 with them.

knack92

sopranolmu wrote: »

Thanks, YorkshireBoy! That's what I thought, it just seemed too high for interest! Yes, £10.38 was what I've received for the last few months. Marvelous.

I transfer the £1,000 back out, as you don't get interest on anything over £2,500 with them.

YB's point was that you needn't have left the £1000 in there for a few days. It can go in and straight back out. This way you don't lose out on any interest if your other accounts are interest paying.

YorkshireBoy

sopranolmu wrote: »

Yes, £10.38 was what I've received for the last few months.

Even for November (and September) which only had 30 days?

agrinnall

knack92 wrote: »

YB's point was that you needn't have left the £1000 in there for a few days. It can go in and straight back out. This way you don't lose out on any interest if your other accounts are interest paying.

Which is what I did today, the £1000 was only there for about 5 minutes, and having moved it to TSB too it's now back in it's usual resting place having been away for less than an hour.

agrinnall

YorkshireBoy wrote: »

Even for November (and September) which only had 30 days?

Almost certainly not, I get net interest of £8.31 in 31 day months and £8.04 in 30 day months, equivalent to 26.8p per day.

anoncol

sopranolmu wrote: »

Thanks, YorkshireBoy! That's what I thought, it just seemed too high for interest! Yes, £10.38 was what I've received for the last few months. Marvelous.

I transfer the £1,000 back out, as you don't get interest on anything over £2,500 with them.

If thats what you thought, then given the interest advertised, why did you think you received too much?

anoncol

agrinnall wrote: »

Which is what I did today, the £1000 was only there for about 5 minutes, and having moved it to TSB too it's now back in it's usual resting place having been away for less than an hour.

They stay in "the other" account as long as it takes me to log in to it .

Broken_Biscuits

what day is interest paid? Only recently set mine up and nothing earned as yet.