Do I have to move interest out of my account?

Evulpaperclip

Hi all,

I have signed up for the Nationwide current account that gives 5% on £2500 for a year.
In my main current account I've got a standing order sending £1000 to the nationwide, and then anoyher sending the £1000 back to my main current.

My question is whether I have to move the excess interest out of the account as well?

From my reading, it appears that the account only gives interest up until the maximum of £2500, but nothing over that amount.

Does this mean that if I exceed £2500 I will get no interest on anything in the account? Or does it mean that I will get interest on the £2500 and then no interest on anything else over the £2500?

Looking forward to hearing from you,


Alex

Alexland

Hi Alex

You will still get the interest on the first 2.5k even if the account balance grows higher. You may also wish to setup the annual 5% regular saver for £250 per month and only return £750 (or about £760 with Flex Direct interest..) to your main account.

I don't bother with standing orders as the app is good.

another Alex

Evulpaperclip

Thanks Alex!

I was worried I'd have to faff about with more standing orders and stuff. That's a weight off my mind.

Is that saver also through Nationwide then?

Cheers,

Alex

Alexland

Yes it's one of the main perks of having a Nationwide current account.

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

Evulpaperclip

I've just set that up, thanks so much for your help

Katiehound

The RS interest is annual so you won't need to worry yet!

The reason folk skim off interest is when it is paid monthly & means the capital total on which interest is paid is exceeded... so it goes off to another interest paying account (such as Tesco internet easy saver or similar.)

As is the case with Nationwide you only get interest paid on the specified sum- anything over that attracts after zero interest. (same for Lloyds, BoS, TSB, Tesco)

badger09

Katiehound wrote: »

In both cases the interest is annual so you won't need to worry yet!

The reason folk skim off interest is when it is paid monthly & means the capital total on which interest is paid is exceeded... so it goes off to another interest paying account (such as Tesco internet easy saver or similar.)

As is the case with Nationwide you only get interest paid on the specified sum- anything over that attracts after zero interest. (same for Lloyds, BoS, TSB, Tesco)

Katiehound

I doubt if its just me who is confused by your post:cool:.

Interest on the Nationwide FlexDirect current account is paid monthly. Hence most people, using it for savings only, skim the interest off.

AngelOfTheNorthWest

I move mine, as I don't use the Nationwide as my current account. Just have it to get the interest. My motto is that money should either be in an account where I'm going to spend it or one where it's going to get some interest, and the monthly interest on the Nationwide Flex is neither.

That said, it's only a tenner a month so the sums involved aren't massive anyway. Just seems like a good habit to get into!

Katiehound

Oops.. is it?
I will have to look closely at the statements.- but I have had that account for well over a year so now it will be seriously small fry!

Sorry

At least I am correct about the RS- that comes at the end of savings the year .
I know I'm correct about interest paid on the stated capital sum because I remember querying the sentence printed on a Lloyds a/c 'cos it read as if zero interest was paid- misleading in extreme.

I have amended so it is now correct, hopefully!

Evulpaperclip

That's basically how I had read it, if I go over the amount, I lose all interest payments. Now having it explained I understand, but the wording could be improved significantly.

Thanks so much for your help everyone!

Alex