Nationwide Flex Direct 5% for a pensioner

Angel_in_tit_tape

Hi,
Hope someone can help. My grandad has £2,500 savings which is getting poor interest rates in his savings account. I am trying to find him a better rate.

I am saving for a house deposit and have a system of current accounts to get higher returns. I wondered whether this could work for him.

I thought perhaps he could get a Nationwide Flex Direct and get 5% on his £2,500. My queries are;

1) Minimum pay in requirement is £1,000 per month. His pension is less than this. However, I thought I could transfer the money in from my saving loop I have running for my accounts and then back out again. Does anyone know if it asks for income on the application and whether the fact he is a pensioner means he will be declined.

2) are there any problems of me transferring the money in for him and then back out? I trust him completely and he trusts me but is there any chance it might not work?

Many thanks

colsten

I can't recall that Nationwide ask for income but they might. I would think the main criteria for acceptance will be the credit history of your grandad.

There's nothing to stop you paying some money into your grandad's account but whilst the money in his account, it is legally his, not yours.

Don't forget you can refer your grandad if he is happy to switch his current account to Nationwide. £100 for each of you.

EDIT: As the Nationwide FlexDirect reverts to 1% AER after 12 months, you / your grandad might want to make some alternative arrangements before long.

YorkshireBoy

Re Q1 you could easily find out for yourself if they ask for income by starting a dummy application.

xylophone

He could try for a TSB plus account and a Tesco current account - he could move £500 from the Tesco to the TSB and back again once a month together with the interest from the TSB?

Angel_in_tit_tape

Thanks for the replies. I'll try to dummy application first and see how far I can get. I worry about him getting credit checked if he's unlikely to be accepted.