Nationwide FlexDirect A/Cs

SevenOfNine

Sorry everyone, suffering bit of 'brain freeze' & N/W site keeps crashing on me as well or I'd try to find answer myself...........

Our individual FlexDirect interest rates will drop shortly from 5% to 1%. Am I right in thinking when that happens we will be able to open a new JOINT FlexDirect straight away at 5%?

If so, we can just leave the others open at 1% as well (for the time being anyway).

YorkshireBoy

You could open the joint now if you have the funds elsewhere. If you don't, then wait until the rate drops.


In your shoes I'd close the sole accounts as soon as the rate drops, rather than waiting and hoping they still allow the (unofficial) lift to 5% this time next year.

SevenOfNine

Thanks YB.

Only planning to keep the accounts open at 1% because everywhere else pays measly interest as well! Can't cope with any more bank accounts (18 already), but it sounds like keeping them both open & languishing there I might trip over wanting 2 new individual ones in 12 months at 5%!

I had it in my head that they would no longer be FlexDirect accounts during that period, but clearly they would be, just at 1% interest instead of 5%.

I'd better leave this until another day when my brain can function!

YorkshireBoy

SevenOfNine wrote: »

Only planning to keep the accounts open at 1% because everywhere else pays measly interest as well! Can't cope with any more bank accounts (18 already)

Trade them both in for an Ulster Bank savings account paying 1.25%?

Alice_Holt

There is, of course, the linked regular saver paying 5%, this might make it worth putting up with 1% rather than move.

However, the monthly contribution has been reduced to £250.
So approx £80 interest from that adding to the £25 from a current account.

An average of £4k in the ulster account - approx £50 annual interest

But do check my assumptions & maths.
(And I'm not sure how many of those you can have as a couple - one for each individual current account?)

I'd be inclined to stay, open (or continue) a linked RS, and hope you can get back the 5% rate in a years time (if it's still on offer).

YorkshireBoy

Alice_Holt wrote: »

There is, of course, the linked regular saver paying 5%, this might make it worth putting up with 1% rather than move.

There's no need to "move". They qualify for a joint FlexDirect, which in turn qualifies them both for another 5% regular saver.

I'd be inclined to stay, open (or continue) a linked RS, and hope you can get back the 5% rate in a years time.

See above. A joint FlexDirect account means no "hope" is necessary. They'll kick themselves if the 'revert back to 5%' option isn't available next year but the 'new' account option is...and it's still paying 5%.

SevenOfNine

We've got a joint FlexPlus, a joint loyalty saver & a regular saver each, but having read about the rate drop when these 'regulars' mature, I don't think we'll start new ones.

Glad I asked my question, rather not risk tripping over in 12 months by holding on to the 1% FlexDirects & missing out on 2 new 5% ones. I'll take a look at the Ulster Bank & open a new joint 5% FlexDirect.

Sorted, hopefully, thanks both of you.

YorkshireBoy

SevenOfNine wrote: »

We've got a joint FlexPlus, a joint loyalty saver & a regular saver each, but having read about the rate drop when these 'regulars' mature, I don't think we'll start new ones.

The rate's not dropping (at least not yet)...it's the maximum monthly subscription that's recently dropped from £500 to £250 for new customers on issue 2, aligning it with HSBC and M&S.

[Deleted User]

My Nationwide FexDirect 5% interest year ended on 4 May 2017. I decided to close the account, rather than risk being turned down for a new "5% year" in May 2018. You can get better than 1% on £2,500 elsewhere (for example, 1.11% with current issue of Tesco Internet Saver or 1.25% with Ulster Bank E Saving account).

I was able to keep my eligibilty for the Flex Regular Saver as I had taken the precaution (following advice on this forum) of opening a Nationwide Flex Account current account in December 2016, into which I had been depositing £750 for more than 3 months prior to closing the FlexDirect in May 2017 (also getting the bonus, no longer available for new Flex Accounts, of free EU travel insurance),

Closing the Flex Direct was easy. Just log on to internet banking and print out the pre-completed current account closure form for the relevant FlexDirect account. Post the form to Swindon and the FlexDirect will close in about 3 days time. Leaves you with no need to worry as to whether "will they, won't they" let me have 5% in a year's time.

Of course, the year's 5% may be withdrawn by next May.

AlanP_2

This has raised a question which hopefully one of you good souls can answer for me.

I have a Flexdirect that I was getting the 5% on £2.5k for up until about 10 months ago.

I have kept it open as it is linked to my NW RS account.

Are you saying that after 12 months at the 1% rate I can somehow go back up to the 5% level? I thought that only applied to new account openings.

alanq

AlanP wrote: »

Are you saying that after 12 months at the 1% rate I can somehow go back up to the 5% level?

Curently you must be without a FlexDirect account for 12 months before reacquiring one at 5%. This might be achieve by downgrading to a Flexaccount but that means losing 1% for a year with no guarantee that 5% will still be on offer at the end of that period.

"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."
http://www.nationwide.co.uk/products/current-accounts/flexdirect/rates-fees-overdrafts