Nationwide Flex Account

maxineworld

Hi,

Can I open a Nationwide Flex account at 5% with £2500, and use my Santander 123 to transfer the needed £1000 a month into the Nationwide. Then transfer that £1000 back out to Santander to get the better interest? Then repeat each month? Or does the £1000 need to be left in there?

Thanks

masonic

You'll be after a Flex Direct account if you want 5% interest for a year. Yes the funding can come from a Santander account you hold and does not need to remain at Nationwide.

Reed_Richards

Nationwide would like you to have a real current account into which you pay your salary or pension. But they don't expect you not to spend this. So the requirement is to deposit a minimum of £1000 each month, not to deposit that money and keep it there.

Voyager2002

Remember that they only pay the 5 per cent for six months, so better to do this when you have 2500 that can stay in there all the time. Since there is no interest on anything about 2500, the smart thing to do is pay in the required 1000 and then immediately transfer it out again.

masonic

Voyager2002 wrote: »

Remember that they only pay the 5 per cent for six months

Still showing as 12 months here: https://www.nationwide.co.uk/products/current-accounts/our-current-accounts/overview

Has it changed?

Dorian1958

Nope, still 12 months for Nationwide for me. I do what the Op wants to do, transfer £1000 into my Nationwide account from a Santander lite 123 account, but I wait until the next day to transfer it back again. (Then I top up Marcus having covered off any DD requirements).

phillw

None of the banks require money to be left there, all they sometimes say is that it needs to be transferred from an account that is not in their banking group.

I have a tsb->nationwide->m&s->coop->tsb which takes a couple of hours due to coop slow incoming payments

itsamyprobably

I started a thread yesterday about opening a Flex Direct account and was looking to do it soon!
Seen that a lot of people pay in the £1000 and then take it back out to make to minimum pay in....but do you have other money kept in there as well ie the £2500 to earn the interest on

I currently have around £1700 in savings that I am thinking of keeping in the nationwide Flex Account (adding to it each month) how much interest would this be per month on average?

bsms1147

itsamyprobably wrote: »

I started a thread yesterday about opening a Flex Direct account and was looking to do it soon!
Seen that a lot of people pay in the £1000 and then take it back out to make to minimum pay in....but do you have other money kept in there as well ie the £2500 to earn the interest on

I currently have around £1700 in savings that I am thinking of keeping in the nationwide Flex Account (adding to it each month) how much interest would this be per month on average?

(Assuming you mean FlexDirect) £85 over the year (£7/month) assuming the balance doesn’t increase, up to £125 over the year (£10/month) if you get to the maximum balance straight away. So somewhere between the two depending on how much you can save and how quickly you can get there.

Interest is paid monthly and calculated daily. Unless you get more than 5% interest elsewhere I’d put your money in a FlexDirect (not a FlexAccount)

StokieBecks

You would have to have money kept in the flexdirect account - a balance of zero earns zero interest.

A balance of £2500 left in the flex direct account was giving me just over £10 a month when I was getting the 5%

bowlhead99

itsamyprobably wrote: »

I currently have around £1700 in savings that I am thinking of keeping in the nationwide Flex Account (adding to it each month) how much interest would this be per month on average?

If you have on average £1700 for a year, and the account pays 5% per year, you would get about £85 a year, which is a little over £7 per month. However, you say you are going to be adding to it each month, so on average you would have more than £1700 in the account, so you would get more than the £85 / £7.

It's important to recognise that you only get interest on money that's actually in the account, and only up to £2500. So if you had £3400 for half a month and £0 for the other half of the month, you might think of the 'average' as being £1700, but when it's £3400 it's only paying interest on the first £2500, and when it's £0 it's not earning anything, so you'd get a lot less than £85 for the year. Whereas if the whole £1700 is there all the time, it's always earning, so you'll always be getting the £7 a month.