Standing orders - going into the red temporarily?

YorkshireBoy

DragonQ wrote: »

I have no idea which of my two FlexDirect accounts Nationwide will "activate" with 5% interest in a year's time, so I just transfer in/out of both.

I don't think that's how it works is it?

In order to get another bite of 5% AER you need to open another FlexDirect account...at least 12 months after you've closed the last one. Keeping your accounts open just prolongs the wait!

Suggest you re-visit the T&Cs and re-assess your position.

DragonQ

YorkshireBoy wrote: »

I don't think that's how it works is it?

In order to get another bite of 5% AER you need to open another FlexDirect account...at least 12 months after you've closed the last one. Keeping your accounts open just prolongs the wait!

Suggest you re-visit the T&Cs and re-assess your position.

Regardless of the T&Cs, I had two FlexDirects open with neither of them earning interest. One day I got a letter saying only one of the two accounts would earn 5% interest. So you don't need to close the accounts, it seems.

YorkshireBoy

DragonQ wrote: »

Regardless of the T&Cs, I had two FlexDirects open with neither of them earning interest.

They were earning the default 1% AER interest.

One day I got a letter saying only one of the two accounts would earn 5% interest.

So did I, but it was good while it lasted.

So you don't need to close the accounts, it seems.

I'll be amazed if they suddenly start paying you 5% AER again on an existing account after 12 months!


One of mine will be closed/switched/downgraded at the end of the 2 month 'notice' period next month, and the other one will be closed/switched/downgraded 2 months later when it's 5% rate expires. That way, I'll be able to get another 5% AER bite sooner.

DragonQ

YorkshireBoy wrote: »

I'll be amazed if they suddenly start paying you 5% AER again on an existing account after 12 months!

Happened last time.

Vortigern

YorkshireBoy wrote: »

In order to get another bite of 5% AER you need to open another FlexDirect account...at least 12 months after you've closed the last one. Keeping your accounts open just prolongs the wait!

That's my understanding too.

It would be very strange if they were to unexpectedly increase the interest rate to 5% without having dangled that rate as a carrot to retain customers...

...although there's nothing in the terms to say that they won't increase the interest rate.

eskbanker

DragonQ - it sounds like it would be worth reading http://www.nationwide.co.uk/products/current-accounts/flexdirect/rates-fees-overdrafts where it's quite clear that 5% is an introductory rate for the first 12 months and that after that it's 1%. It also explicitly states:

If you have previously held a FlexDirect account in the last 12 months, you will not be entitled to the introductory rate or offer under a new agreement and therefore you will receive the standard 1% gross p.a/ AER (variable) interest rate.

ratechaser

Vortigern wrote: »

Try this:
Transfer £750 from Santander to Halifax 4-weekly on a Wednesday
Transfer back 4-weekly on a Thursday.
NB. These are 4-weekly standing orders, not monthly.

There are no Wednesday bank holidays till Boxing Day 2018, so your outbound payment will not be delayed and there will always be cash available for the return payment.

Advantage: you can automate the Halifax funding and save time.
Disadvantage: you lose a small amount of interest while £750 is out of Santander for 13 days each year.

Why are you keeping a FlexDirect with a zero balance? And why do you need to fund it regularly?

This is actually an extremely helpful and important post for anyone that's taking advantage of the multiple incentives that are on offer right now. I've got 8 different accounts on the go right now all with at least short term funding requirements, so I was in the middle of setting up SOs, in one day and out the next. But I was setting them up MONTHLY rather than FOUR WEEKLY, so not only will I hit bank holidays, but also weekends. And frankly without trawling through the payment mechanics for each bank, I suspect this could land me in trouble at some point where a debit was attempted before the credit had hit.

So a big thank you from me, I'm now going to redo all of these to be every 4 weeks with a Wednesday/Thursday in-out. I can live with losing a few quid in interest here.

RC

Vortigern

ratechaser wrote: »

This is actually an extremely helpful and important post for anyone that's taking advantage of the multiple incentives that are on offer right now. I've got 8 different accounts on the go right now all with at least short term funding requirements, so I was in the middle of setting up SOs, in one day and out the next. But I was setting them up MONTHLY rather than FOUR WEEKLY, so not only will I hit bank holidays, but also weekends. And frankly without trawling through the payment mechanics for each bank, I suspect this could land me in trouble at some point where a debit was attempted before the credit had hit.

So a big thank you from me, I'm now going to redo all of these to be every 4 weeks with a Wednesday/Thursday in-out. I can live with losing a few quid in interest here.

RC

Don't forget that there are 4 Wednesdays each month. You may need to use them all to avoid putting your hub account in the red.