Nationwide to cut interest and overhaul overdraft fees on FlexPlus account - is it still worth it?

Gordon_the_Moron

Halifax is changing slightly, it's currently £15 per month if you pay out 2 direct debits and pay in at least £750 and stay in credit. If you don't meet that criteria it's £17.

From December 1st until November 2020 (we don't know what happens after that!?) the fee will be £17 regardless but you will be able to earn a £5/month reward (paid the following month - making it effectively £12/month)

To get the £5 you will need to pay in at least £1500 per month and spend at least £500 on your debit card per month. If like me you do your day to day spending with a cashback credit card, simply pay your bill online using your debit card.

Clive_Woody

Chris Rhodes, executive director of products and propositions at Nationwide, said: "As a mutual Nationwide is not driven by profit. However, we are not immune to inflationary pressures and we need to make some essential changes to our FlexPlus account so that it remains relevant to new and existing members

How does cutting benefits from the account equate to remaining relevant to customers? What does that even mean? This is an absolute nonsense statement and essentially a lie. This is being done to maintain profits, nothing more, nothing less.

The only time I ever hear from nationwide is when they send me an email or letter to tell me they are cutting benefits or reducing interest paid.

The mobile phone insurance is now becoming an irrelevance as I have a low end Samsung phone, so deducting the increased excess would result in a minor payout, certainly not enough to justify multiple years of premium payouts before any claim.

Essentially it's travel and breakdown insurance, which I suspect can be purchased for less than the annual costs of this account.

Time to say goodbye to nationwide

Thrugelmir

Clive_Woody wrote: »

This is being done to maintain profits, nothing more, nothing less.

Banks like everyone else are starting to get squeezed in this era of low interest rates.

System

!!! wrote: »

No, that’s not what’s being implied...

Ever heard of tongue in cheek?!

The BS should simply charge (for the services) per account holder then it would make it more equitable for other members.

Guess they won't - like keeping free FlexAccount insurance for older account holders and cashback for older Select card holders.

Julia_Coletta

Does anyone know if similar changes are likely to be applied to the Nationwide FlexDirect Account? I was just about to open an account based on the benefits listed on MSE’s info on accounts useful as a respite while you manage your overdraft.

And if they are, what might be a useful alternative account?

Westin

If they didn’t spend so much on marketing with those truly terrible and very cringe worthy TV adverts perhaps they wouldn’t need to cut back on rewards and interest to customers.

chattychappy

Nationwide love to adopt the superior "we're different we work for our members" stuff, but they play the same game as the plcs.

Personally I'd like to see them demutualise so I can cash in!

TheShape

chattychappy wrote: »

Nationwide love to adopt the superior "we're different we work for our members" stuff, but they play the same game as the plcs.

Personally I'd like to see them demutualise so I can cash in!

I worked for Nationwide from 2007 to 2008. Their internal 'motto' at that time was 'Be more like the Banks'. After the financial crisis they incorporated the 'Proud to be a Building Society' motto into their advertising.

roddydogs

They put demutualisation to a vote and it was voted down many years ago. Too many people believed the hype about "caring more "

Freda_Salway

Flexplus will still be excellent value for travellers over 70 yrs of age. £13 a month for annual insurance for a couple is excellent value. There maybe a small additional charge from insurers if you have ongoing health issues - but still a goodcdeal if you go away several times a year.
Also, it us worth remembering that there is no charge to withdraw cash from machines abroad - well certainly in Europe.