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

Nationwide8

pafpcg wrote: »

We don't know how agressive Nationwide will be in closing a Flexclusive Regular Saver in these circumstances, so to play safe:

- Open a new Flexaccount (leaving your existing FlexDirect account open to ensure your Flexclusive regular saver stays valid).
- Fund your new Flexaccount with £750pm to meet the Flexclusive regular saver criteria (for twelve months or until you want to close the Flexclusive account).
- After three months, close the FlexDirect account.
- In fifteen months, you'll be eligible again for 5% on a new FlexDirect account.

Would that work for you?

Got it,was actually thinking myself if funding a Flexacc with £750 a mth for at least 3 mths or longer would let me keep the FRS open and close the Flexdirect...might just do that and maybe check with Nationwide in 3 mths from now if that works...

enthusiasticsaver

pafpcg wrote: »

Yes, (though I think you can credit the new Flexclusive Regular Saver on 1st Jan.)



Crediting your ISA regular saver with £500 and then withdrawing it to transfer to the Flexclusive regular saver is just wasting some of your annual ISA allowance!

It appears that you want to save £1,500 per month in three regular savings accounts (Flexclusive, ISA and TSB regular savers), so you'll need to either find an additional source of funds or reduce the amounts going into each account.

The TSB regular saver is actually £250 per month which is the maximum. All my current accounts are now at maximum so I have decided to transfer the remaining balance in my Nationwide regular savings Isa to my stocks and shares isa. I am not too worried about the isa allowance as I have about £6k of my allowance left for this year which will be used by my monthly portfolio transfer. I no longer want to pay into Nationwide regular isa saver as it pays 2.07 to the 5% on the Flexclusive. The only issue is I need to keep my monthly transfer from Santander to the 20th I think to tie in with income requirements for Flexdirect so £500 will sit in there earning no interest from 20th each month to 2nd of following month for the Transfer to Flexclusive as you cannot increase by more than £500 each month. Sounds complicated 😞

fonsde

I have 10k on a regular saver with them @ 2%. Since you are only allowed a regular saver or a flex regular saver. Do you think it is worth switching to flex regular @ 5%?

ceredigion

fonsde wrote: »

I have 10k on a regular saver with them @ 2%. Since you are only allowed a regular saver or a flex regular saver. Do you think it is worth switching to flex regular @ 5%?

Read post 48 and on

Mr_Cool1

A great find,Rich and good on Nationwide a 5% Savers A/C can not be bad news!

AndyPK

So this is worth £130 a year to a basic rate tax payer. Is that correct ?

MDMD

AndyPK wrote: »

So this is worth £130 a year to a basic rate tax payer. Is that correct ?

Sort of - I work it out at £162.50 gross, but as the interest is annual and won't be paid until after 6 April, you will get the full amount and will only need to pay tax if you have used up your personal savings allowance elsewhere. (Assuming the chancellor doesn't move the goalposts as it hasn't been legislated yet)

http://www.nationwide.co.uk/support/support-articles/faqs/flexclusive-regular-saver-faqs#xtab:when-does-my-interest-get-paid

The rate is also variable, so could move if they wish, probably self defeating if they are trying to use it to grow their customer base.

colsten

AndyPK wrote: »

So this is worth £130 a year to a basic rate tax payer. Is that correct ?

It will be at least £161.29 before tax. Whether you have to pay any tax on it depends on the total interest you earn in 2016-17 - - you will have a £1,000 savings interest allowance in that tax year, and the first interest payment will be in that tax year. So you may well get away without paying any tax on the savings.

If you drip-feed the FlexClusive Saver from a 3% current account, your pre-tax interest will be £244 .

http://www.moneysavingexpert.com/savings/best-regular-savings-accounts#dripfeed

caveman38

MDMD wrote: »

Sort of - I work it out at £162.50 gross, but as the interest is annual and won't be paid until after 6 April, you will get the full amount and will only need to pay tax if you have used up your personal savings allowance elsewhere. (Assuming the chancellor doesn't move the goalposts as it hasn't been legislated yet)

http://www.nationwide.co.uk/support/support-articles/faqs/flexclusive-regular-saver-faqs#xtab:when-does-my-interest-get-paid

The rate is also variable, so could move if they wish, probably self defeating if they are trying to use it to grow their customer base.

I'm not so sure it will be paid gross as in T&C it says


"Interest is paid with income tax deducted. If you're not a UK taxpayer and wish to receive your interest without tax being deducted you will need to give us a completed R85 form."

YorkshireBoy

caveman38 wrote: »

I'm not so sure it will be paid gross as in T&C it says


"Interest is paid with income tax deducted. If you're not a UK taxpayer and wish to receive your interest without tax being deducted you will need to give us a completed R85 form."

They have to say that because, as a previous poster said, the legislation hasn't been passed yet. At the moment it's still just a "proposal".