Nationwide monthly saver

zak2012

If i pay £500 for first two months of opening regular saver with nationwide which pays %5 and then on third month pay £50 or £20 a month, how much intrested i earn after a year on my £1000 which i paid in first two months?please ignore 3rd or rest of ten months because i wont pay into that much. so do i earn %5 for whole year on that £1000 ? or they just pay intrest for the two months? thanks

colsten

Interest gets calculated at the end of each day, on the balance in the account at that time. You will not get interest for money that was not in the account at that time.

The interest rate applied each day is the gross rate divided by 365. The gross rate for the FlexDirect is 4.89%.

For example, if you had £500 in the account for 300 days, the interest earned on that £500 in 12 months would be £7.34.

Note that the FlexDirect pays interest each month, into the FlexDirect. If your FlexDirect balance stays below £2,500, you will earn interest on interest (compounded interest).

zak2012

colsten wrote: »

Interest gets calculated at the end of each day, on the balance in the account at that time. You will not get interest for money that was not in the account at that time.

The interest rate applied each day is the gross rate divided by 365. The gross rate for the FlexDirect is 4.89%.

For example, if you had £500 in the account for 300 days, the interest earned on that £500 in 12 months would be £7.34.

Note that the FlexDirect pays interest each month, into the FlexDirect. If your FlexDirect balance stays below £2,500, you will earn interest on interest (compounded interest).

i have FlexiDirect current account, i want open thier monthly saver as well but i cant pay in £500 for 12months so i thought if i pay first two months 500 each it would have higher interest after a year even if i paid lower following months.i can keep 1000 in regular safer .so do you think i leave this £1000 in Nationwide regular saver or tesco current account?which better?thanks

Vortigern

For the regular saver, the first deposit earns interest for 12 months, the second earns interest for 11 months etc.

The first £500 deposit earns 500 x 5/100 x 365/365
The second earns 500 x 5/100 x 335/365 (approx, depends on date of deposit)
...

zak2012

colsten wrote: »

Note that the FlexDirect pays interest each month, into the FlexDirect. If your FlexDirect balance stays below £2,500, you will earn interest on interest (compounded interest).

but its only for 12 months.so can i apply for new FlexiDirect after 12 month and still get %5 rate?or its only for new customers?

eskbanker

zak2012 wrote: »

but its only for 12 months.so can i apply for new FlexiDirect after 12 month and still get %5 rate?or its only for new customers?

You have to wait another 12 months before getting 5% again (assuming they're still offering it by then), as per http://www.nationwide.co.uk/products/current-accounts/flexdirect/rates-fees-overdrafts:

If you have previously held a FlexDirect account in the last 12 months, you will not be entitled to the introductory rate

Zanderman

eskbanker wrote: »

You have to wait another 12 months before getting 5% again (assuming they're still offering it by then), as per http://www.nationwide.co.uk/products/current-accounts/flexdirect/rates-fees-overdrafts:

And you have to have closed the old FlexDirect - as it will still be classified as FlexDirect even if it isn't paying 5% anymore. You can do this by closing it yourself, switching it elsewhere (with the new bank closing it for you) or by downgrading it to a FlexAccount or any other Nationwide Current Account. The 12 months wait only begins after you have done this...