Nationwide Flexplus account

grumbler

Mr_Goodkat wrote: »

The fee is offset with £2,500 in the account earning 3% interest

As I said above, it's a delusion.
Even if you took advantage of all possible 3-6% accounts, it's just 1% more than 2% available in Tesco and YB, i.e. just £20 p.a. extra for a basic rate taxpayer, not £120.

le_loup

grumbler wrote: »

As I said above, it's a delusion.

Not it isn't.
If this is your main bank account, generally you will have a balance in that account awaiting a cheque to be presented or a dd to go out. So unless you are using it as a savings account with £2,500 sitting there, there is interest earning potential on all balances in your account.

Mr_Goodkat

grumbler wrote: »

As I said above, it's a delusion.
Even if you took advantage of all possible 3-6% accounts, it's just 1% more than 2% available in Tesco and YB, i.e. just £20 p.a. extra for a basic rate taxpayer, not £120.

It is not a delusion!


The account operated as a joint account is costing us £120 gross at 12 x £10 monthly fees.


I actually think £120 per year to cover two people (some of the cover even stretches to the full family) for worldwide travel, European breakdown and mobile phone insurance plus extended warranty cover is very good value.


The fact they will also pay 3% interest on £2500 held in the account means that the monthly net cost to us as a couple is £10 minus the monthly interest as we only need to make a single transfer for the difference between the £10 fee and the interest received. There are no minimum funding or direct debit requirements.


With 30+ current accounts I operate the above as part of a wider portfolio to take advantage of higher rates and regular savers. We could not earn more than 3% on the £2500 as every higher rate is already exploited.

grumbler

le_loup wrote: »

Not it isn't.
If this is your main bank account, generally you will have a balance in that account awaiting a cheque to be presented or a dd to go out.

Not necessarily, and most people won't need £2.5K for this regardless.

Mr_Goodkat wrote: »

It is not a delusion!

The account operated as a joint account is costing us £120 gross at 12 x £10 monthly fees.

I actually think £120 per year to cover two people (some of the cover even stretches to the full family) for worldwide travel, European breakdown and mobile phone insurance plus extended warranty cover is very good value.

I have never said that this account wasn't a good value for people needing phone insurances, but how is this relevant to 3% interest that apparently offsets the fee?!

With 30+ current accounts I operate the above as part of a wider portfolio to take advantage of higher rates and regular savers.

Well, my calculation was incorrect only if your portfolio includes all 2% accounts available. Even if it does, it would be 1.6% (net) extra compared to 1% accounts, i.e. £4 p.m., not £10 needed to "offset" the full fee.

That said, my interpretation of the word "offsets" might be different from yours.
I assumed that by "offsets" you meant "covers the full fee".

We could not earn more than 3% on the £2500 as every higher rate is already exploited.

Fine, but you can earn less without paying a fee.

Mr_Goodkat

grumbler wrote: »

Not necessarily, and most people won't need £2.5K for this regardless.

I have never said that this account wasn't a good value for people needing phone insurances, but how is this relevant to 3% interest that apparently offsets the fee?!
Well, my calculation was incorrect only if your portfolio includes all 2% accounts available. Even if it does, it would be 1.6% (net) extra compared to 1% accounts, i.e. £4 p.m., not £10 needed to "offset" the full fee.

That said, my interpretation of the word "offsets" might be different from yours.
I assumed that by "offsets" you meant "covers the full fee".
Fine, but you can earn less without paying a fee.

Nobody has claimed that 3% on £2.5k 'fully offsets' the £10 per month fee - it clearly doesn't.


Offset or offsetting to me does not mean covering the full amount so that the net is zero it is simply a reduction in the total cost by taking into account the interest the account pays.


In the past when mortgage rates were significantly higher I have used an Offset mortgage and was benefitting from offsetting at no time were my savings 100% offsetting my mortgage but I was reducing the interest I was paying on the mortgage by not receiving interest on the savings and using these savings to reduce the total amount I was then paying interest on.


All I and others have said that by keeping the account topped up with £2,500 and earning 3% interest on it means the net monthly cost operating the account is £10 minus interest received. I am therefore partly offsetting the £10 operational cost of the account by funding part of the fee with interest.


The way I and others operate this account is very much like an offset mortgage - it is not a formal offsetting agreement but the reality the net cost to me per month is £10 minus monthly interest received.


£120 per year for two or £60 each per year for the covers provided as a gross cost is to my mind good value. Having taken advantage of all higher rate current accounts and regular savers I am also pleased to get 3% interest on £2.5k meaning the reality is this interest is more than I could get anywhere else on that particular £2.5k and is partly offsetting a fee that I would happily pay for the cover provided.

grumbler

Mr_Goodkat wrote: »

Nobody has claimed that 3% on £2.5k 'fully offsets' the £10 per month fee

My apologies then for misinterpreting your statement.

zagfles

chelldavies wrote: »

Thanks zagfles, safi is scheduled airline failure insurance, recommended for non package hols in case airline cancels flight, I think?!?! Just trying to establish if I have enough cover through Nationwide flex plus and credit card.
Sorry for high jacking your thread pay_me ☺️

Any decent insurance would cover this - pretty sure the NW one does and anyway paying by CC would normally cover you under the CCA so you'll likely be doubly covered!

pollypenny

Martin has a best bank account calculator. We used it and found that it recommended NW Flex Plus,,as I thought.

We've had it a year now and are very pleased. We are covered for both smart phones, breakdown, extended warranties etc.

OH has existing medical conditions which we've just renewed at £96, essential for our regular visits to the USA.

There's also access to a Regular Saver paying 5% with instant access. Oh, and British call centres.

We consider £2500 our minimum balance, so the account costs about £5 a month really.

colsten

pollypenny wrote: »

Martin has a best bank account calculator.

Have you got a link pls?

YorkshireBoy

colsten wrote: »

Have you got a link pls?

This one?...

http://www.moneysavingexpert.com/banking/best-fee-charging-current-accounts