Nationwide Flex Direct options

Simon7685

I have had the dreaded letter from Nationwide telling me that in 2 months time my 5% interest rate is ending, so I am looking at options going forward.

Having read the T&C's I think I have understood it correctly that if I was to open a joint account it would be eligible for the 5% again for 12 months. Can anyone confirm for me that I have got this right?

Just a bit of additional info the joint account would include another relative that also currently has a flex direct account in an individual capacity.

A second question would be are we able to open 2 joint accounts and get 5% on both or is that too much to hope for?

We have also already maxed out the TSB accounts so can't fall back on them for the 5%.

MARTYM8`

I was curious about the joint account option - I presume its fine if both have their own sole flex direct accounts.

Could you for example both wait for your 5% for one year to expire on your sole accounts - and then open a joint account (albeit sharing the £2.5k limit) for a second year.

The other option I gather is is to swap the sole account for a year to the flex account (avoiding credit checks) - no interest is paid on that but it does give you free European travel insurance - and then if the FD is still available in a year move it back to a new FD.

Because you cannot get a further year's 5% on a sole account if you have had a flexdirect sole account in the last 12 months.

Jsscmm

MARTYM8` wrote: »

The other option I gather is is to swap the sole account for a year to the flex account (avoiding credit checks) - no interest is paid on that but it does give you free European travel insurance - and then if the FD is still available in a year move it back to a new FD.

Another variation is to open a new Flex Account and then use the old Flex Direct as an account to switch to another bank for their bonuses... It closes down the FD on the Nationwide systems and therefore lets you start up the FD again in a year (if it is still there!) whilst giving you circa. £100 and (after 3 months) the European travel insurance in the mean time.

Archi_Bald

One person can only have 1 sole and 1 joint FD so you can't find a new home for 2 x £2,500 at 5% at Nationwide.

But if you are happy to tie up the money for 12 months, each of you you could move the cash to a 3% account and drip-feed a 6% Regular Saver.

Here is the outline of one plan that could work, depending on what accounts you have. It would pay you £93 after BR tax plus the £125 switching bonus, versus £100 in a 5% account.

1. switch your FD to M&S; collect the £125 switching bonus. Use this link else it will be just £100
2. set up the M&S RS and put £250 into it
3. open a Tesco current account
4. move the remaining £2,250 from M&S into Tesco
5. move £250 from Tesco to M&S for RS for the next 11 months (you will obviously need to top up from other funds, or reduce the £250. You'll also need to cycle £750 a month through the Tesco account. I assume this is not a problem for you)
6. when the year is up, check whether Nationwide still offer a 5% account......and whether you still need the Tesco account. Although you will be allowed a new M&S RS.

First Direct and HSBC also do 6% RS accounts.

The MSE RS dripfeed calc can help you work out the interest: http://www.moneysavingexpert.com/savings/best-regular-savings-accounts#savingscalc

SevenOfNine

I switched my 'maturing' FlexDirect over temporarily to Yorkshire for £150 & 2% interest (up to 3k) while I decide what to do next, no d/d's needed but think that's changed.

Ideally, I'd like an interest bank a/c with access to a 6% monthly savings (my Lloyds monthly saver 4% maturing next week). 2x Tesco, Santander, 2x Lloyds, BoS all maxed out already

Bit stuffed as I'm non tax payer & hubby is 40% so keep having to leave him out of the equation.......shame, I have to look after all 'our' dosh!! :A

I'm fed up with crummy interest rates which mean savings have to be scattered all over the place. I know I shouldn't moan as many don't have spare cash to scatter, but...............:(

Jsscmm

SevenOfNine wrote: »

I switched my 'maturing' FlexDirect over temporarily to Yorkshire for £150 & 2% interest (up to 3k) while I decide what to do next, no d/d's needed but think that's changed.

Ideally, I'd like an interest bank a/c with access to a 6% monthly savings (my Lloyds monthly saver 4% maturing next week). 2x Tesco, Santander, 2x Lloyds, BoS all maxed out already

I don't see the TSB 5% (for 2k) account mentioned? No monthly savings (HSBC, First Direct or M&S are the only banks with those, none of which have any interest on the currant account) but 5% is better than 3%.

ceredigion

SevenOfNine wrote: »

I switched my 'maturing' FlexDirect over temporarily to Yorkshire for £150 & 2% interest (up to 3k) while I decide what to do next, no d/d's needed but think that's changed.

Ideally, I'd like an interest bank a/c with access to a 6% monthly savings (my Lloyds monthly saver 4% maturing next week). 2x Tesco, Santander, 2x Lloyds, BoS all maxed out already

Bit stuffed as I'm non tax payer & hubby is 40% so keep having to leave him out of the equation.......shame, I have to look after all 'our' dosh!! :A

I'm fed up with crummy interest rates which mean savings have to be scattered all over the place. I know I shouldn't moan as many don't have spare cash to scatter, but...............:(

Tell me more

SevenOfNine

Jsscmm wrote: »

I don't see the TSB 5% (for 2k) account mentioned? No monthly savings (HSBC, First Direct or M&S are the only banks with those, none of which have any interest on the currant account) but 5% is better than 3%.

There, you see, money scattered all over (exc numerous ISAs & other savings a/c's) - I forgot to include my 2 x TSBs!

Had First Direct a few years ago so can't get switching incentive, might give more thought to M&S switch & settle for voucher (oh dear, then I'll have to spend it on clothes for myself, what a shame:T).

All food for thought, thanks.

Ceredigion - what do you want to know?

YorkshireBoy

SevenOfNine wrote: »

Ceredigion - what do you want to know?

I'd guess clarification on the Lloyds accounts, ie are they both sole Club accounts? Or maybe one is joint?...but that goes against what you said about keeping hubby out of the loop, so the 2nd might be a 1.5% AER Vantage?


Why leave hubby "out of the equation"? TSB would see a return of 3% after tax, Nationwide the same, and Club Lloyds 2.4%. Of course making them joint would reduce the loss.

ceredigion

Thanks Yorkshire boy, couldn't have put it better myself. Suppose one of the accounts could have been left over from vantage. But there's always the outside possibility that people have managed to acquire 2 club accounts.

SevenOfNine

YorkshireBoy wrote: »

I'd guess clarification on the Lloyds accounts, ie are they both sole Club accounts? Or maybe one is joint?...but that goes against what you said about keeping hubby out of the loop, so the 2nd might be a 1.5% AER Vantage?


Why leave hubby "out of the equation"? TSB would see a return of 3% after tax, Nationwide the same, and Club Lloyds 2.4%. Of course making them joint would reduce the loss.

Yes, 1x Club Lloyds IS joint, it's our active daily bank a/c (got to have 1 somewhere).

Very good points made in your second para, definitely worth consideration & now I might have to tell him!:rotfl: