Nationwide launch new 5 per cent regular saver for current account customers

colsten

Yorkshire_Pud wrote: »

MSE says in its Summary for this account regarding interest rate:

5% AER fixed for 12 months.

Nationwide says the interest rate is Variable but that the Flexclusive Regular Saver account runs for a fixed 12 month TERM.

The counter assistant in my local Nationwide said interest is fixed at 5% for 12 months.

I'm confused.

The Nationwide website says interest rate is 5% AER variable so it's most unlikely that the interest rate would be 5% AER fixed. What is fixed is the term of the account - 12 months.

http://www.nationwide.co.uk/products/savings/flexclusive-regular-saver/features-and-benefits

hoc

Like a few others, I had been building a balance over the past years in the now withdrawn Regular Savings (not the Regular Saver). A choice between this new 5% with usual 12 month cycle and a never ending account at lower 2% rate would have been the obvious choice. Nobody would sign up for the new 2% one and Nationwide must have done their sums in losing the money (and potentially customers) of balances built up in the Regular Savings when it comes to an end next year. I am surprised actually given Nationwide's frequent efforts to highlight themselves as being different in rewarding long term customer loyalty.

I will open one of these new 5% accounts and continue with my Regular Savings until Dec 2016 when it converts to a pathetic savings rate. I will then take out my entire cash balance and only rinse and repeat the 5% regular saver.

colsten

hoc wrote: »

I will open one of these new 5% accounts and continue with my Regular Savings until Dec 2016 when it converts to a pathetic savings rate. I will then take out my entire cash balance and only rinse and repeat the 5% regular saver.

And will you make more interest than you would have made in the 2% Regular Savings account? If not, why not?

lolly5648

Can you pay into the 5% account from another bank or do have to do it via the N/W current a/c and then transfer the money?

YorkshireBoy

lolly5648 wrote: »

Can you pay into the 5% account from another bank or do have to do it via the N/W current a/c and then transfer the money?

See post #124 (and the account T&Cs).

Pincher

YorkshireBoy wrote: »

I thought that wasn't possible with FD? Unless they've changed the rules? Or maybe you don't have an FD regular saver and you're just referring to those you do have/have had in the past?

Very odd. The most recent First Direct Regular Saver seems to be taking the £300 on the 2nd of each month.


On the other hand:


The full year statement for September 2013 to 1st September 2014 shows the £300 were paid/taken on


01 Sep 2013
01 Oct
01 Nov
02 Dec
02 Jan 2014
03 Feb
03 Mar
01 Apr
01 May
02 Jun
01 Jul
01 Aug


and then on 1st Sep 2014


NET INTEREST TO 31AUG2014 £93.55




Have to say I didn't bother to pursue the logic.
Probably a next working day thing.




I suppose I could manually cancel the standing order and set one up out of curiosity. Nah, can't be bothered.

noelphobic

noelphobic wrote: »

Apologies if this has already been asked and answered. Do the changes to the Regular Savings account (the 'old' 2% one) mean that I will get the 2% rate irrespective of whether I pay in and/or withdraw or not? In other words, I can use it like an instant access account, provided I don't increase the balance by more than 1k a month?

I'm very pleased if that's the case!

Does anyone know the answer to this please?

Pincher

Yorkshire_Pud wrote: »

MSE says in its Summary for this account regarding interest rate:

5% AER fixed for 12 months.

Nationwide says the interest rate is Variable but that the Flexclusive Regular Saver account runs for a fixed 12 month TERM.

The counter assistant in my local Nationwide said interest is fixed at 5% for 12 months.

I'm confused.

When the one year is up, the Regular Saver will become a low interest holding account, but why would they drop the interest rate beforehand, and upset all the customers they lured in with a ~£150 bribe?

Yorkshire_Pud

noelphobic wrote: »

Apologies if this has already been asked and answered. Do the changes to the Regular Savings account (the 'old' 2% one) mean that I will get the 2% rate irrespective of whether I pay in and/or withdraw or not? In other words, I can use it like an instant access account, provided I don't increase the balance by more than 1k a month?

I'm very pleased if that's the case!

Appears to be that way, no more tiered interest, and a £0 to £1,000 per month funding. Do check with Nationwide though.

I junked this account when they reduced the rate from 2.5% to 2%, not worth it with all the nasty little catch outs Nationwide built into it.

Think thay are trying to re brand themselves as the Friendly Society with their new Flexclusive Regular Saver without catches for once but not so Friendly that they could actually commit to paying the 5% for a whole 12 months so made it variable rate. Unlike all the other Regular Savers from TSB, HSBC, M&S, FD which are ALL fixed rate. But then that's because Nationwide are 'different'.

They do have a proven track record of reeling customers in then chopping the rate, like the so called Loyalty Saver which as a customer of over 15 years i got the top rate of 1.8% which swiftly went down to 1.2%.

I did enjoy closing my Regular Savings account in branch and the sheepish looks on their faces as I told them why and they looked for a pair of scissors to ceremonially cut up my bank card and bin it:)

2010

You can save maximum of £500 for 12 months equalling £6k.
How much interest would you accumilate and whats the eayiest method to work it out?