Nationwide

Newly_retired

I have a flex direct account now paying 1%.
I want to open the Flexplus, as, despite its fee, it will be cheaper for me than my breakdown and phone insurance premiums, and I will get interest at 3%.

Is there any advantage in opening it as a second account, or would I be better to upgrade my Flex direct?
I am thinking if I do that, I can open another Flexdurect at 5% in a year's time.
By the way, I have a Regular Saver which I believe will be unaffected. Can anyone confirm this, please?

Mchambers

Newly_retired wrote: »

By the way, I have a Regular Saver which I believe will be unaffected. Can anyone confirm this, please?

Yes...it will be unaffected.

bigadaj

The nationwide policy on upgrading a flexdirect seems to be confused, it's often allowed on appeal to get the 5% after a year but the terms seem ambiguous.

I'd upgrade the flex direct and then reapply for that product a year after the interest downgrade.

I switched my flex direct earlier this year and will be opening a new one next spring, assuming the offer is still the same of course, no guarantees.

EachPenny

Newly_retired wrote: »

...it will be cheaper for me than my breakdown and phone insurance premiums, and I will get interest at 3%.

Have you shopped around for quotes for breakdown and phone insurance first? The Nationwide fee might be less than what you pay for cover currently, but it doesn't necessarily mean it is the cheapest option.

If you are a Tesco customer they have a good (though not as good as it was) deal with the RAC for example.

Also make sure the insurance offered with package accounts gives you the same (or better) cover than you are currently paying for, not all insurance policies are the same.

Joe_Bloggs

You will be paying £13 per month from the 21st September.
The amount you can deposit into a new Regular Saver has been clipped to 250 a month from 500, for all .

Some arithmetic:-
12 x 13 = 156
Interest on 2500 @ 3% per year = 75
There may be some value in the deal for some.
J_B.

Newly_retired

Thanks for all the replies.
156-75 = 81 and I think I would struggle to get phone, breakdown and travel insurance for that, so I reckon it is worth it for me.
Yes, I think I am satisfied with the T & C.
I am not a Tesco customer.
I had not read about the Regular Saver amount being lowered. I am still on £500 pm for a few months yet anyway, as I presume it is not changed part way through a year. I will check on that. Who knows what will be on offer next year.

Newly_retired

Did I do the right calculation there?

ceredigion

Newly_retired wrote: »

Did I do the right calculation there?

In my view, no. You can get the interest elsewhere and should not be calculated in. The charge for the insurance is 156 pounds.

bigadaj

ceredigion wrote: »

In my view, no. You can get the interest elsewhere and should not be calculated in. The charge for the insurance is 156 pounds.

I'd put it somewhere between the two, exactly where depends on individual opinion.

Newly_retired

Well I have used most of the higher interest possibilities, so an extra account at 3% comes in handy.

EachPenny

Newly_retired wrote: »

Well I have used most of the higher interest possibilities, so an extra account at 3% comes in handy.

Most, but not all?

The way I'd approach it would be that it is easy to get a rate of about 1.1% easy access at the moment. This would be £27.50 on your £2500. By going to 3% you'd gain an extra £47.50. So the maths is 156 - 47.50 = £108.50 (cost).

I don't know your insurance requirements, but basic breakdown starts at around £30 (£20.50 from Tesco). To get the equivalent breakdown cover provided by FlexPlus you might be paying more like the whole £100, but it really depends if you need this level of cover. The same applies to the mobile and travel insurance elements. It is good cover, but only if you need it.

On the other side of the equation, there is a regular flow of new regular saver accounts. Even if you have the latest pair from Virgin at 2.25%, there should be another two coming along in a couple of months. That would mean the assumption about a 1.1% 'best' interest rate would be wrong, and the net cost of the FlexPlus account would be higher.

What you really need is a crystal ball