Nationwide Flexdirect Help

Vanda2

Hello,

I am trying to get my head around having more than one current account to earn interest on my savings. I've been looking on the Nationwide website about their flexdirect account. It says ...

This rate is fixed for the first 12 months (reverting to 1% gross p.a./AER (variable) after this period). You must pay in £1,000 or more each month to receive interest (excluding transfers from any Nationwide account held by you or anyone else) ...

Am I assuming correctly that if I put in £2,500 (maximum amount to gain the interest) and then set up a standing order from my Halifax account for £1000 to be paid in every month, I will qualify? If so can I take the £1000 out again a few days later? It's confusing me a little bit when it says "excluding transfers".

Thank you in advance for any help

darkidoe

Vanda2 wrote: »

Hello,

I am trying to get my head around having more than one current account to earn interest on my savings. I've been looking on the Nationwide website about their flexdirect account. It says ...

This rate is fixed for the first 12 months (reverting to 1% gross p.a./AER (variable) after this period). You must pay in £1,000 or more each month to receive interest (excluding transfers from any Nationwide account held by you or anyone else) ...

Am I assuming correctly that if I put in £2,500 (maximum amount to gain the interest) and then set up a standing order from my Halifax account for £1000 to be paid in every month, I will qualify? If so can I take the £1000 out again a few days later? It's confusing me a little bit when it says "excluding transfers".

Thank you in advance for any help

Yes you are correct. Standing orders from other Banks are considered paying into the account. What most people do is set a standing order (£1000) from Nationwide to another interest paying account (eg. TSB, Tesco) and also a standing order (£1000) from the interest paying account to Nationwide on the same day. That way, there is no net change in the balances and its automatically set up to meet the criteria for interest.

polymaff

Vanda2 wrote: »

Hello,

I am trying to get my head around having more than one current account to earn interest on my savings. I've been looking on the Nationwide website about their flexdirect account. It says ...

This rate is fixed for the first 12 months (reverting to 1% gross p.a./AER (variable) after this period). You must pay in £1,000 or more each month to receive interest (excluding transfers from any Nationwide account held by you or anyone else) ...

Am I assuming correctly that if I put in £2,500 (maximum amount to gain the interest) and then set up a standing order from my Halifax account for £1000 to be paid in every month, I will qualify? If so can I take the £1000 out again a few days later? It's confusing me a little bit when it says "excluding transfers".

Thank you in advance for any help

You're correct - except that you can take the £1,000 back out a few milliseconds after you've paid it in and still meet the terms and conditions.

jimjames

In NW terms, transfer means moving money between their own accounts. They call money going externally a payment.

eskbanker

Vanda2 wrote: »

It's confusing me a little bit when it says "excluding transfers".

But as you've already quoted, it actually says "excluding transfers from any Nationwide account held by you or anyone else"!

polymaff wrote: »

You're correct - except that you can take the £1,000 back out a few milliseconds after you've paid it in and still meet the terms and conditions.

You can even take it out before paying it back in again, assuming the balance exceeds £1,000 before doing this of course!

greenglide

Or, of course, you can two separate transfers and back of £500 on different dates if you are concerned that the balance may be less than £1,000.

polymaff

eskbanker wrote: »

You can even take it out before paying it back in again, assuming the balance exceeds £1,000 before doing this of course!

Providing the second transaction occurs that same day - or it's loss of interest time. Do you feel lucky?

Eco_Miser

polymaff wrote: »

Providing the second transaction occurs that same day - or it's loss of interest time. Do you feel lucky?

Yes. And it's probably loss of interest time on the other account if you do it your way and anything goes wrong - and definitely loss of interest time if you do it Martin's way, with a couple of days between movements.

ceredigion

polymaff wrote: »

Providing the second transaction occurs that same day - or it's loss of interest time. Do you feel lucky?

Depends how you define "day".

Vanda2

Thank you both. My 1st bank account (and my only one up till now) is with the Halifax. I've opened a Nationwide account (as above). When I've got it all set up do I go and deposit £2500 (to get the interest) and then set up a standing order from the Halifax to the Nationwide for £1000 a month? This money isn't wages, it's savings. So on the first month there will be £3500 in the account. What do I do then? I'm still not understanding, sorry.

Vanda2

Should have said thank you all �� There were more replies after composing my second message lol.