FlexDirect - Latest t's & c's from Nationwide effective January

No_6

Back a couple of months, opened another 5% saver account, after the OLD one finished @ £250 a month for 12 months.
Said how to open, on the paper work that came b4 the old on finished.
£500 in it now

Giammy85

Under the terms and conditions of this account customers are only entitled to one promotional credit interest rate of 5% AER (4.89% gross pa.). The only permitted exception to receive more than one promotional rate is if the additional account is held in joint names.

Any additional FlexDirect accounts held or more than one joint account held by you and another customer will result in the credit interest rate being reduced from 5% (4.89% gross p.a.) to 1% gross p.a/ AER (variable) within 7 working days of the account being opened. If you have previously held a FlexDirect account 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.

Me and my partner have previously held a FlexDirect account but not together.
If we now open a joint account will that qualify for 5%?

System

This 5% offer sounds good on paper, but what would you actually get in a year if you had the £2500 in the account for the full year? Is it as simple as 2500 x 5%? I get £5.50 a month from my Co-operative Bank account and don't have to bother about keeping £2500 in it for 12 months. It doesn't stop after a year either.

YorkshireBoy

scgf wrote: »

This 5% offer sounds good on paper, but what would you actually get in a year if you had the £2500 in the account for the full year? Is it as simple as 2500 x 5%?

Nearly. It's £2,500 x 4.89%.

I get £5.50 a month from my Co-operative Bank account and don't have to bother about keeping £2500 in it for 12 months. It doesn't stop after a year either.

Nor will it go on indefinitely! What will you do with the £2,500 if you don't save it with Nationwide at 5% AER?...save it at 3% with Tesco?...save it at 1.5% with Marcus?...or something else? But why not have Co-op and Nationwide? Maybe you don't have £2,500 you could leave in there for a year?

System

I'm retired on a pension, so I try to have a £1000-£1500 buffer, but couldn't afford more than that - I suppose I could put that £1000 to better use elsewhere since it earns me nothing with the Co-op. But what I'd earn on £1000 probably isn't worth it.

YorkshireBoy

scgf wrote: »

I'm retired on a pension, so I try to have a £1000-£1500 buffer, but couldn't afford more than that - I suppose I could put that £1000 to better use elsewhere since it earns me nothing with the Co-op. But what I'd earn on £1000 probably isn't worth it.

I would have thought with only £1,000 to £1,500 in cash, the extra £50 to £75 would come in handy...especially if combined with a £100 switching bonus if you could open a donor account?

masonic

scgf wrote: »

I'm retired on a pension, so I try to have a £1000-£1500 buffer, but couldn't afford more than that - I suppose I could put that £1000 to better use elsewhere since it earns me nothing with the Co-op. But what I'd earn on £1000 probably isn't worth it.

If £50 a year isn't worth it, then perhaps you'd consider doing it anyway and donating the interest to charity.

System

I've had a Nationwide account before so wouldn't be eligible for the 5% offer. I have a couple of other current accounts doing nothing so could use them as donor accounts. Is Tesco bank the next best thing, or the TSB?

masonic

scgf wrote: »

or the TSB?

TSB was the account I had in mind. Up to £1500 fits nicely in there for 5%.

System

Food for thought. I wonder if they'll announce a switching bonus any time soon?