Nationwide Flexdirect ending

Goudy

Our Nationwide Flexdirect accounts that SWMBO and myself signed up to as extra current accounts are coming to the end of their 5% fix and the RS's that hang off them will soon mature.

I know we aren't the only ones considering what to do with them when the interest rate drops to 1% as half our family are asking as we bloody referred them!

So I thought it might be worth asking what anyone else plans to do?

At the moment we're considering a string of switches to suck up some switching perks while they last, we know that this might interfere with credit ratings for a while, but we've no need to borrow anymore.

Is there any other drawbacks to creaming all the switching perks one after the other?
The only thing I can think of is our Raisin accounts have these Nationwide accounts as nominated accounts and by the time they are due to pay out, we could be a few banks down the line. (though I see it's quite easy to swap nominated accounts with Raisin)

Willing2Learn

I think it could be worth keeping the account open, just for the linked 5% Regular Saver

francismay

what happened if we didn't deposit £750 per month to our Nationwide Flexdirect accounts?

Willing2Learn

You need to pay in a minimum £1,000/month to be eligible to receive interest.

xylophone

I kept my flex direct account simply for the RS - the only credit is £250 a month which is then credited to the RS.

Goudy

As I understand it, Flexdirect has a fixed interest rate of 5% on £2500 for a year if you pay in £1000 a month (and then straight back out again).
After which it's 1% if you make the same pay in. (not sure where £750 comes from)

Pay nothing in and you earn nothing for that month.

Thanks Willing, I did consider keeping both or one open for this.
But I see First Direct has also a 5% RS, this time £300 a month.(rather than the £250 of Nationwide)
If I just leave £1000 in the First Direct current account I can suck up £125 and pay no account fee and make use of their 5% RS.
A bit better than firing a grand back and forth for a year for £25 and a smaller RS total.

colsten

Sounds a good plan for yourself, Goudy. Worth noting though:

Goudy wrote: »

A
If I just leave £1000 in the First Direct current account .....

You do not need to leave £1K sitting in the FD current account. A simple FD savings account, other than their Regular Saver, waives the monthly fee for the current account. I have one which started with £1 several years ago and now has £1.03 in it.

You do need to pay in £1,000 sometime in the first 90 days to qualify for the switch bonus, but as usual, you can take that money straight out again.


BTW, the £750 have to do with the Nationwide FlexAccount - totally unrelated, and only of interest to those who had that account for aeons

francismay

I do not want the 1% interest, is too low.
what happened if we didn't deposit £1000 per month to our Nationwide Flexdirect accounts?
Do they cancel it or ?

Willing2Learn

francismay wrote: »

I do not want the 1% interest, is too low.
what happened if we didn't deposit £1000 per month to our Nationwide Flexdirect accounts?
Do they cancel it or ?

They just don't pay you interest on your credit balance. There should not be any other penalty.

Goudy

colsten wrote: »

You do not need to leave £1K sitting in the FD current account. A simple FD savings account, other than their Regular Saver, waives the monthly fee for the current account. I have one which started with £1 several years ago and now has £1.03 in it.

Thanks Colsten, this is good news. I'm sure I can make this £1000 work a bit hard elsewhere.


So my switching ends at First Direct, now where to start?
Looks like NatWest and RBS might end before I can switch.

YorkshireBoy

Goudy wrote: »

...I did consider keeping both or one open for this.

"Both" means you only have two accounts between you? Maybe 1 sole each? If you've never had a joint FlexDirect why not open one for another year of 5% on £2,500? Also retains eligibility for a pair of 5% regular savers (assuming you don't qualify by other means).