Nationwide FlexDirect Account

RG2015

My Nationwide FlexDirect Current Account is about to reach its 1 year anniversary and the interest rate will fall from 5% to 1%. My 5% Regular Saver will also be maturing and I will be opening a new one so I need to keep the current account open.

The terms state that I need to pay in £1,000 per month to receive the 1% on up to £2,500 but there are better rates available elsewhere so I intend to reduce this to £250 to fund the RS.

If I just transfer in £250 per month for the RS and leave a balance of £1.00 will this satisfy Nationwide's requirements for both the current account and the RS eligibility criteria?

badger09

RG2015 wrote: »

My Nationwide FlexDirect Current Account is about to reach its 1 year anniversary and the interest rate will fall from 5% to 1%. My 5% Regular Saver will also be maturing and I will be opening a new one so I need to keep the current account open.

The terms state that I need to pay in £1,000 per month to receive the 1% on up to £2,500 but there are better rates available elsewhere so I intend to reduce this to £250 to fund the RS.

If I just transfer in £250 per month for the RS and leave a balance of £1.00 will this satisfy Nationwide's requirements for both the current account and the RS eligibility criteria?

Yes:)

Though, personally I would not set a SO to the RS on the same day as the SO of £250 going in. I'd move it to the RS manually, or set it a couple of days later.

I also now run my Flexdirect with a small balance but I do use it several times a year for an online payment. In fact I do that with all my 'feeder' current accounts because I'm naturally a cautious badger:o

RG2015

badger09 wrote: »

Yes:)

Though, personally I would not set a SO to the RS on the same day as the SO of £250 going in. I'd move it to the RS manually, or set it a couple of days later.

I also now run my Flexdirect with a small balance but I do use it several times a year for an online payment. In fact I do that with all my 'feeder' current accounts because I'm naturally a cautious badger:o

Thank you.

That's a good point on the SOs as to date I have always had a cushion of £2,500 to cover any external funding failures.

I too am cautious and tend to put in the occasional small cash withdrawal or contactless TX on my non main current accounts.

Kim_13

That'll be fine, subject to the Regular Savings funding precautions mentioned above. Only the FlexAccount requires the account's minimum pay in requirement to be satisfied in order to retain the Regular Saver. For the FlexDirect you only need to pay in £1,000 per month if you want to receive the 1% interest on £1 in your case.

I'm currently reusing my 1% FlexDirect for a temporary holding pot in one of the MSE savings challenges, so it has no balance some of the time.

YorkshireBoy

Kim_13 wrote: »

That'll be fine, subject to the Regular Savings funding precautions mentioned above. Only the FlexAccount requires the account's minimum pay in requirement to be satisfied in order to retain the Regular Saver. For the FlexDirect you only need to pay in £1,000 per month if you want to receive the 1% interest on £1 in your case.

I'm currently reusing my 1% FlexDirect for a temporary holding pot in one of the MSE savings challenges, so it has no balance some of the time.

Switching an account into a FlexAccount (using the CASS) eliminates the need to pay in £750 a month.

Kim_13

YorkshireBoy wrote: »

Switching an account into a FlexAccount (using the CASS) eliminates the need to pay in £750 a month.

Only for 4 months.

"hold a FlexAccount and:
have been paying in £750+ a month for the last 3 months (excluding transfers from any Nationwide account held by you or anyone else);or
completed an account switch to us (from a non-Nationwide account) using our Current Account Switch Team in the last 4 months"

https://www.nationwide.co.uk/products/savings/flexclusive-regular-saver/features-and-benefits

YorkshireBoy

Kim_13 wrote: »

Only for 4 months.

"hold a FlexAccount and:
have been paying in £750+ a month for the last 3 months (excluding transfers from any Nationwide account held by you or anyone else);or
completed an account switch to us (from a non-Nationwide account) using our Current Account Switch Team in the last 4 months"

https://www.nationwide.co.uk/products/savings/flexclusive-regular-saver/features-and-benefits

I read that before I posted. My opinion is that I'd then be a 'Main Account' holder and so be able to open the Reg Saver so long as I did it by 4/4/18.

The bit you've cropped from the start of your quote is the bit that says "To open this account:" (their bold). It follows then, that I could run this account for a year simply by switching, and there would be no need to fund each month.

I do realise that in order to get a second bite of the regular saver next year (if it's still around) I'd need to re-assess the situation nearer the time.

Kim_13

YorkshireBoy wrote: »

I read that before I posted. My opinion is that I'd then be a 'Main Account' holder and so be able to open the Reg Saver so long as I did it by 4/4/18.

The bit you've cropped from the start of your quote is the bit that says "To open this account:" (their bold). It follows then, that I could run this account for a year simply by switching, and there would be no need to fund each month.

I do realise that in order to get a second bite of the regular saver next year (if it's still around) I'd need to re-assess the situation nearer the time.

Knew I'd seen it somewhere; clause 4 would allow them to convert the account during the year: https://www.nationwide.co.uk/~/media/MainSite/documents/products/savings/terms-and-conditions/P3363-FlexclusiveRegularSaver2.pdf

YorkshireBoy

Kim_13 wrote: »

Knew I'd seen it somewhere; clause 4 would allow them to convert the account during the year: https://www.nationwide.co.uk/~/media/MainSite/documents/products/savings/terms-and-conditions/P3363-FlexclusiveRegularSaver2.pdf

I don't think they'd ever do that (under the circumstances being discussed here). If I lost my job and couldn't meet the £750 a month there's no way Nationwide would take my 5% savings account off me...in my opinion of course. Just imagine the damage done there to customer relations!

RG2015

badger09 wrote: »

Yes:)Though, personally I would not set a SO to the RS on the same day as the SO of £250 going in. I'd move it to the RS manually, or set it a couple of days later.

Definitely a good point. I have just checked this year's transactions and my Nationwide SO frequently is posted at the weekend before my external funding which does not. I will need to change the date if I take the balance down to £1.

AirlieBird

RG2015 wrote: »

Definitely a good point. I have just checked this year's transactions and my Nationwide SO frequently is posted at the weekend before my external funding which does not. I will need to change the date if I take the balance down to £1.

That's an important point. Nationwide will process SO for internal transfers on a weekend if that is when the payment date falls. Unless the Flex Account is topped up by faster payments there will need to be a sufficient balance to cover the SO before the weekend.