Nationwide 5% interest question

dylantombides

I currently have a Flex Direct account. Been with them nearly a year now meaning the interest is about to drop. If I open a Saver account with them, does this interest remain at 5%?

pphillips

The Flex Direct goes down to 1% after a year - there is no way round this.

dylantombides

Ok but the Saver account offers 5% so surely I can just move over to this one to continue to enjoy the 5% interest?

Terry_Towelling

It's a regular saver that offers 5% interest as long as you have a qualifying Nationwide current account. So, at the moment, 'yes' that savings account will continue to pay you 5% interest on whatever balance you have in it, but you can't just transfer a load of cash into it - you are limited to paying in no more than £250 per calendar month.

MisterMotivated

The Flex Regular Saver pays 5%, but it's just that; a regular saver account, not a current account. You can put up to £250 into it per month, so you'd ideally need to find a decent home for the rest of your money and drip feed it in.

londoninvestor

Terry_Towelling wrote: »

It's a regular saver that offers 5% interest as long as you have a qualifying Nationwide current account. So, at the moment, 'yes' that savings account will continue to pay you 5% interest on whatever balance you have in it, but you can't just transfer a load of cash into it - you are limited to paying in no more than £250 per calendar month.

And of course, every 12 months it will empty itself out and you'll need to start refilling it again.

Bobblehat

Also bear in mind that if you put the maximum in each month £250, you'll have £3000 in after a years worth of deposits, but that WON'T generate £150 interest …. it'll be approximately £81. You may already know this but it's a regular question from new savers in Regular Saver accounts. That 5% looks more like 2.7% because the £3000 has not been it the account for the whole year … it builds up to that by the 12th month. So the interest generated is approximately the same as having £3000 in for a whole year at 2.7%. I won't bore you with the maths!

PRAISETHESUN

The Nationwide FlexDirect account will drop to 1% after 12 months - as mentioned above there is no way around this. The regular saver is a separate product which offers 5% interest on balances, but you can only deposit up to £250 per month - making it unsuitable if you have a lump sum you want to deposit straight away. You will need to drip feed the money in over 12 months before it matures, the interest is paid and the account is closed.

Chaykin

Is the trick for re-instating the 5% on FlexDirect after not having it for at least a year still working or have they cancelled that as well?

Nebulous2

Chaykin wrote: »

Is the trick for re-instating the 5% on FlexDirect after not having it for at least a year still working or have they cancelled that as well?

That no longer works it is once only as an individual. You can get it again with a joint account though.

No_6

Why did you not have one when you joined,,,,,
unless you didn't have a extra £250 a month spare ?

but no worries NW are still running 5% savings for £250 a month for 12 months...… read your data from NW !