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

darkidoe

Yet another awesome regular saver!:j Damn I am running out of monthly income to save! They need to stop these tempting savings account if not I shall run out of money to buy food.

EarthBoy

This is a great account, -at the moment. However, has anybody else noticed that the interest rate is variable? It's not fixed for 12 months, like it is with TSB and First Direct.

The term of the account is fixed for 12 months, but the interest rate is specifically described as variable, so it's 5% now, but it could easily fall in a few months' time.

On a positive note, you're not limited to one payment a month, like you are with TSB and FD, so if you can't afford £500 in one go you can put a smaller amount in and add further deposits later, subject to the monthly total of £500.

MDMD

EarthBoy wrote: »

On a positive note, you're not limited to one payment a month, like you are with TSB and FD, so if you can't afford £500 in one go you can put a smaller amount in and add further deposits later, subject to the monthly total of £500.

It's not actually a monthly pay in total of £500, rather a monthly balance increase of £500. So you can take money out and pay back in subject to that proviso.

http://www.nationwide.co.uk/support/support-articles/faqs/flexclusive-regular-saver-faqs#xtab:how-can-i-add-money

darkidoe

MDMD wrote: »

It's not actually a monthly pay in total of £500, rather a monthly balance increase of £500. So you can take money out and pay back in subject to that proviso.

http://www.nationwide.co.uk/support/support-articles/faqs/flexclusive-regular-saver-faqs#xtab:how-can-i-add-money

However, 'Interest is calculated daily and paid annually on anniversary of account opening and on closure of the account' So worthwhile keepin it in there as long as you can!

EarthBoy

darkidoe wrote: »

However, 'Interest is calculated daily and paid annually on anniversary of account opening and on closure of the account' So worthwhile keepin it in there as long as you can!

True, but that's just the same as with any other account that pays interest.

jimjames

EarthBoy wrote: »

The term of the account is fixed for 12 months, but the interest rate is specifically described as variable, so it's 5% now, but it could easily fall in a few months' time.

It is variable and yes it could fall in a few months. Some people were saying the same about the Santander and TSB accounts paying 3% and 5% so didn't bother to open them. Over 3 years on they're still paying those rates and those people have missed out on 3 years worth of better interest.

EarthBoy

jimjames wrote: »

It is variable and yes it could fall in a few months. Some people were saying the same about the Santander and TSB accounts paying 3% and 5% so didn't bother to open them. Over 3 years on they're still paying those rates and those people have missed out on 3 years worth of better interest.

I can't speak for Santander, but TSB hasn't been paying 5% for three years yet. The Classic Plus account, paying 5% was only launched in spring 2014, I believe, and the Monthly Saver, paying 5%, is only a few months old.

apt

EarthBoy wrote: »

This is a great account, -at the moment. However, has anybody else noticed that the interest rate is variable? It's not fixed for 12 months, like it is with TSB and First Direct.

.

Nationwide has had 'variable' 12 month regular savers before and has not varied the rate. The likelihood is that it will keep the rate for the 12 month term.

colsten

I don't understand why anyone would not make use of a great interest rate for as long as they possibly can.

As and if Nationwide should drop their rate, you can move your money instantly, and at no penalty, to a better place. You can even instantly and penalty-free move your money to a better place if Nationwide don't drop their rate.

What's there to lose?

uptdale

Be careful how you open the Regular Saver account. Because each person can have only one account, separately or jointly, a couple should maximise the interest by each having a separate account. But if your Nationwide current account is a joint account and you set up the Regular Saver by transferring funds from your current account, the Regular Saver will automatically be a joint account, and neither party will be able to open another Regular Saver.

So make sure each person opens a Regular Saver by transferring funds from an account in his or her sole name.