Nationwide 5K overdraft

Pablo2010

Nationwide was more than happy to increase my overdraft to 5K. Is it not too much?
Having read some comments here, it seems to me Nationwide is really generous in my case.



thanks

masonic

Do you have to pay any fees for using it? If so, it's not really a generous offer.

Pablo2010

I've never used overdraft and don't really need to. It comes with interest free offer for another 10 months with my FlexDirect account

masonic

Pablo2010 wrote: »

I've never used overdraft and don't really need to. It comes with interest free offer for another 10 months with my FlexDirect account.

So let me get this straight, they've offered you a £5k overdraft with no interest/charges when you use it? That's really generous. I'd put the whole £5k in an interest-paying account and earn some interest on it. Start with TSB with £1,500 at 5%, Tesco £3,000 at 3%, leaving £500 to find a home for, perhaps their Flexclusive regular saver at 5%.

Edit: Extremely generous given they are currently charging new customers for using their overdraft: https://www.nationwide.co.uk/products/current-accounts/our-current-accounts/overview
"Representative Example: If you use an arranged overdraft of £1,200 the amount we will charge you is 50p per day (variable)." - It turns out this is actually fee free for the first 12 months.

Pablo2010

Thanks for quick reply and further information;)
Yes, all new FlexDirect customers can avail of interest free overdraft for 12 months. My Flex Account has been upgraded and I could get this offer.

TheShape

Pablo2010 wrote: »

Thanks for quick reply and further information;)
Yes, all new FlexDirect customers can avail of interest free overdraft for 12 months. My Flex Account has been upgraded and I could get this offer.

The 'problem' with the interest-free overdraft for the first 12 months with the Flexdirect account is that it runs for the same 12 month period in which you can earn 5% interest on a balance of up to £2500.

Essentially you can have the interest free overdraft OR the 5% interest.

masonic

TheShape wrote: »

The 'problem' with the interest-free overdraft for the first 12 months with the Flexdirect account is that it runs for the same 12 month period in which you can earn 5% interest on a balance of up to £2500.

Essentially you can have the interest free overdraft OR the 5% interest.

But the overdraft is not subject to the condition "If you have previously held a FlexDirect account and benefitted from the 5% AER introductory rate, you will not be entitled to this rate again", so is great for those who can't get the 5% interest.