Get 5% on up to £2.5k. Nationwide FlexDirect

IAN_Hughes

Can anyone advise how much money and how long I'd need to keep in this account to make the full £2,500 @ %5 AER? I'm estimating £50k for 12 months but I'm not sure I have the right calculation. Is it safe to assume I can stooze the £1000 monthly pay in and out as long as I kept the required balance?

This question relates to this article on this site(sorry I'm not allowed to post a hyperlink)
STOP accepting paltry savings - earn up to 5%

Archi_Bald

You seem to misunderstand the account. You cannot earn £2,500 in interest. You can earn interest on up to £2,500. Any balance above £2,500 does not earn interest.

binaryuniverse

I think you've read it wrong. It's not interest of £2500. It's interest on a balance of £2500.

The next clue is in the A in AER. Which means annual.

So. (2500 / 100) * 5 = £125 per year. Divide by another 12 gives you 10.416 a month.

IAN_Hughes

I thought I must have it wrong, thanks folks.

grumbler

What the newsletter actually says is:

MSE wrote:

Get 5% on up to £2.5k. Nationwide FlexDirect* (choose 'FlexDirect' from accounts in the link) pays 5% AER fixed for 1yr on up to £2.5k

teddysmum

Archi_Bald wrote: »

You seem to misunderstand the account. You cannot earn £2,500 in interest.

Wouldn't that be lovely ?