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Bank Accounts that Pay Interest
DaisyBryar
Posts: 7 Forumite
This is probably a stupid question, but I just can't get my head around it.
Nationwide have a current account (FlexDirect) with an introductory offer where, every month for the first 12 months, you get 5% interest (AER) on any income over £1,000. Does that honestly mean that if you deposit £1,000 every month, you get £50 per month free, totaling £600 extra for free that year???
This is way more than any of my savings accounts have ever paid so I'm convinced I've missed a trick somewhere, because they can't possibly be giving people £600 MINIMUM for free.
I've only ever dealt with annual interest so maybe I'm missing some vital information regarding monthly interest?
Nationwide have a current account (FlexDirect) with an introductory offer where, every month for the first 12 months, you get 5% interest (AER) on any income over £1,000. Does that honestly mean that if you deposit £1,000 every month, you get £50 per month free, totaling £600 extra for free that year???
This is way more than any of my savings accounts have ever paid so I'm convinced I've missed a trick somewhere, because they can't possibly be giving people £600 MINIMUM for free.
I've only ever dealt with annual interest so maybe I'm missing some vital information regarding monthly interest?
0
Comments
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No; they are not they are paying 5% per year or around 0.4% per month.
It is also capped at a balance of £2500.0 -
5% per annum on a maximum balance of £2,500 is a maximum interest of £125 in the first year .
not bad add but not as good as for example the £175 paid for switching to HSBC0
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