Switching from Barclays > Nationwide (help!)

itsamyprobably

Hi :hello:

Been a visitor of the MSE forums for a while but finally joined!
I am currently with Barclays with a regular current account and an Everyday Saver (think the rate is 0.3% or less on my savings)

Thinking of changing to Nationwide FlexDirect current account with the Flexclusive Saver account, my partner has an account with Nationwide so I would benefit from the £100 bonus for switching.

I know the FlexDirect account offers a 5% interest rate on balances of at least £1000, but I have also opened up a Monzo account which I transfer all my none bill/spoken for money into to track my spends.
If I receive say £1400 in to the FlexDirect account, all my direct debits and standing orders come out, and then I transfer a chunk of whats left into my Monzo account, would I get the 5% interest on the balance that was paid into the account at the start of the month, or just what is remaining?

sorry if this is a stupid question, new to all of this and never really took notice of interest rates etc until I started my saving and budgeting journey for real last month!

Any advice is welcomed :j:

sheramber

https://www.nationwide.co.uk/products/current-accounts/flexdirect/features-and-benefits#xtab:interest

How we pay interest

colsten

itsamyprobably wrote: »

I know the FlexDirect account offers a 5% interest rate on balances of at least £1000

This is incorrect. The FlexDirect pays 5% AER , for 12 months, and 1% AER thereafter, on max £2,500 provided that £1,000 gets paid in every month. Please read the account information on the Nationwide website.

itsamyprobably wrote: »

If I receive say £1400 in to the FlexDirect account, all my direct debits and standing orders come out, and then I transfer a chunk of whats left into my Monzo account, would I get the 5% interest on the balance that was paid into the account at the start of the month, or just what is remaining?

You will always only ever get interest on the money that is actually in your account (on max £2.5k) at the end of each day. Interest gets calculated daily, based on the balance of the account at the end of the day.

itsamyprobably

sorry, I did read the terms just put the most important part to me in the thread. But I am aware of the rest of the terms
Unsure I’ll benefit much from the 5% for the 12 months, with what balance will be left in. Unless I keep money in there almost as a “savings account” for a year to get some interest

Willing2Learn

Hi and welcome to the forum

The account pays over £10 per month interest if you keep the account balance at a constant £2,500. I have been using it like a savings account

itsamyprobably

Willing2Learn wrote: »

Hi and welcome to the forum

The account pays over £10 per month interest if you keep the account balance at a constant £2,500. I have been using it like a savings account

thank you I am thinking of doing that, just don't want to get lost as to whats my income and whats my savings, should be fine though if I put all the money for spending into my Monzo, my usual outgoings will automatically come out of the Nationwide account and I will be back to what I have saved!

kikkime

It only lasts 1 year though. I am currently saving up and will open an account in a few months when I have £2500 that I absolutely do not need to touch so I could maximise interest earnings.

xylophone

Thinking of changing to Nationwide FlexDirect current account with the Flexclusive Saver account,

If you mean the 5% Regular Saver it is no longer available to new customers (and even old customers will lose the chance to open a new one on maturity).

itsamyprobably

xylophone wrote: »

If you mean the 5% Regular Saver it is no longer available to new customers (and even old customers will lose the chance to open a new one on maturity).

Sorry, Flexclusive ISA not saver!