Nationwide FlexDirect Question

IvanDP

Evening everyone.

After taking advice from members of the forum, i opened a FlexDirect account, just for the interest.
As I have never used a current account purely for savings, I am after a little advice.
I have the £2500 ready to deposit, and am aware of the £1000 monthly pay in to qualify for the 5% interest.

My question is:
Would I be better off depositing a bit more in the account to use to cycle backwards and forwards to meet the pay in requirements so the balance never drops below £2500, or just use some of the original deposit for the same purpose?

Thanks in advance:D

ceredigion

It makes little difference.
8.30 pm is what maters

PRAISETHESUN

As long as the balance at the end of the day is £2500 then you'll get interest on £2500. The order of payments doesn't really matter. Personally I'd keep your account balance spot on £2500 as anything over this amount will get no interest. At least if it sits elsewhere it might be getting something...

xylophone

Do you have another account which always has at least £1000 in it?

For example, suppose a TSB account where you are holding £1500 so as to get the 3% interest.

You can set up a mid month same day SO for £1000 from TSB to NW and from NW to TSB and so automate the process.

eskbanker

xylophone wrote: »

Do you have another account which always has at least £1000 in it?

For example, suppose a TSB account where you are holding £1500 so as to get the 3% interest.

You can set up a mid month same day SO for £1000 from TSB to NW and from NW to TSB and so automate the process.

The same principle can also be applied with a smaller balance elsewhere, by (for example) using cross-firing weekly SOs of £250....

PRAISETHESUN

eskbanker wrote: »

The same principle can also be applied with a smaller balance elsewhere, by (for example) using cross-firing weekly SOs of £250....

Or daily transfers of £35.72??? (to cover the February eventuality )

mikemmb

Quote: "As long as the balance at the end of each day is £2500 then you'll get interest on £2500. The order of payments doesn't really matter."

I am curious how this works with the £1000 per month minimum you must pay in?
For example if you keep a minimum of £2500 in the account at the end of each day this meets the max interest requirements.
But for the £1000 min paid in requirement, does the additional £1000 have to be "seen" in your account over at least one night? Or could you pay it in in the morning and out again in the afternoon?
I suppose what I am saying is that in order to satisfy both criteria would you have to leave £3500 in the account overnight?

System

I know that we all want to maximise our interest, but the blurb does say "every penny up to £2500", so if you don't quite manage to keep the whole £2500 in your account for the entire month, as I understand it you would still receive 5% on what is in there, provided you are paying in your £1,000 each month.

badger09

mikemmb wrote: »

Quote: "As long as the balance at the end of each day is £2500 then you'll get interest on £2500. The order of payments doesn't really matter."

I am curious how this works with the £1000 per month minimum you must pay in?
For example if you keep a minimum of £2500 in the account at the end of each day this meets the max interest requirements.
But for the £1000 min paid in requirement, does the additional £1000 have to be "seen" in your account over at least one night? Or could you pay it in in the morning and out again in the afternoon?
I suppose what I am saying is that in order to satisfy both criteria would you have to leave £3500 in the account overnight?

No it doesn't have to be there overnight.

The monthly funding of £1k just has to land in the Nationwide FlexDirect (from outside Nationwide).

It can be manually shifted out again immediately. Or - drum roll..... it can go out first, then back in;)

molerat

mikemmb wrote: »

But for the £1000 min paid in requirement, does the additional £1000 have to be "seen" in your account over at least one night? Or could you pay it in in the morning and out again in the afternoon?

My £1K stays in the account for about 10 seconds.

mikemmb

badger09 wrote: »

No it doesn't have to be there overnight.

The monthly funding of £1k just has to land in the Nationwide FlexDirect (from outside Nationwide).

It can be manually shifted out again immediately. Or - drum roll..... it can go out first, then back in;)

Hey that's good! So if you had another "similar" type of bank account set up elsewhere you could always meet their criteria as well?

The mind boggles at the vision of endless churning of money between numerous accounts, could have a competition to see who could create the most interlinked accounts generating micro amounts of daily interest?