Nationwide Building Society Loyalty!

[Deleted User]

Thrugelmir said:

In order to treat customers fairly this is an opportune time for finance houses to ditch lots of defunct accounts. 

Nationwide could get rid of most legacy products and merge FlexDirect/FlexAccount current accounts products too.

Wsb5tails

I thought we were supposed to get 30 days notice, not 15.  Maybe I'm confusing it with a different account because I've searched but cant find anything

macman

Loyalty is a one-way process, which is one of the main reasons this site exists. Don't expect it, and you won't be disappointed.

d63

so02see said:

I thought we were supposed to get 30 days notice, not 15.  Maybe I'm confusing it with a different account because I've searched but cant find anything

in their general terms and conditions it says:

61. If we reduce the interest rate on your account and you have £100 or more in your account, we will send you a personal notification at least 14 days before we make the change. If you want to, you then have 30 days from the date of notification, to tell us you want to close your account or switch to a different account. If you do that, you will not have to give any notice, pay any charges or suffer any loss of interest that might otherwise have applied. If we do not hear from you, we will regard you as accepting the change on the date it comes into effect.

not entirely sure what that bit about "not suffer any loss of interest" if you let them know within 30 days means tho. 

anyway the letter they sent me although dated 1st april did not arrive for, well, not sure now, but with a few days to spare from the 14 day limit.

SeeMe

d63 said:

so02see said:

I thought we were supposed to get 30 days notice, not 15.  Maybe I'm confusing it with a different account because I've searched but cant find anything

not entirely sure what that bit about "not suffer any loss of interest" if you let them know within 30 days means tho. 

anyway the letter they sent me although dated 1st april did not arrive for, well, not sure now, but with a few days to spare from the 14 day limit.

Just got my letter today about my loyalty ISA also dated 1st April, i am going to transfer most of it to my FlexDirect Account and send it to another saving account with another provider (does not need to be another ISA), just need a better rate.

YellowStarling

Sorry to divert the thread slightly, but to those opening new FlexDirect accounts before 01 May 2020 (to lock in 12 months at 5% on £2,500 rather than 2% on £1,500), I've noticed this on their website today:

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

"To earn 5% AER (4.89% gross p.a.) interest on balances up to £2,500 you’ll need to pay in £1,000 a month, not counting transfers from other Nationwide accounts or Visa credits. If you’ve had a FlexDirect before, you won’t receive this offer again, unless your new FlexDirect account is in a different name or names."

Is this a new stipulation?  I have had multiple FDs in the past (the old sole and joint combo) and then opened fresh ones as the others 'matured', securing the 5% "introductory" rate each time.

Digging a little deeper (here: https://www.nationwide.co.uk/products/current-accounts/flexdirect/rates-fees-overdrafts), this is further clarified:

"You can get the 5% rate on more than one FlexDirect account as long as you haven’t opened accounts in that name or those joint names before. For example, you could earn the 5% rate on both an account in just your name, and on a joint account in your and your partner’s names. If you open new accounts in the same name or joint names as previous accounts, they'll earn the standard 1% AER rate, even if you’ve closed the first accounts in those names."

Supposing previous customers were to open new FDs (in the same name(s) as previously), then - depending on when they opened them - I am not sure exactly what is meant by "they'll earn the standard [rate]" in the quote above.  Based on the final quote from Nationwide's site below, if I (as a previous FD customer, with no new joint holder/changed name) were to open a new FD account before 01 May 2020, I will not receive 5% on £2,500 but would I receive the "standard" 1% on £2,500 that 'accompanies' new 5% accounts opened before 01 May 2020, for 12 months as per the 'honouring' of advertised rates made in the offer below.  Or would I instead receive 1% on £2,500 until 01 May 2020, then reduce to 0.25% on £1,500 from 01 May 2020, as I would presumably receive were I to open the FD (in unchanged names) on or after 01 May 2020?

"Our interest rates are changing
From 1 May 2020, the interest rates on our FlexDirect current account are changing.
For the first 12 months, the interest rate will be 2% AER (1.98% gross) on balances up to £1,500. After that, it will be 0.25% AER (0.24% gross) on balances up to £1,500.
If you started your application before 1 May 2020, the current rate of 5% AER (4.89% gross) will apply for the first 12 months on balances up to £2,500. After that, the new 0.25% rate and £1,500 balance limit will apply."

Summary: looks like it isn't as simple as opening new FDs now before 01 May 2020 to lock in the last, great rate, unless it's your first one, or you have changed your name or have found a new joint holder.  

If this doesn't describe you, then to me it is not clear if Nationwide will still provide you with 1% on £2,500 for 12 months, which - when factoring in max. amounts that are interest-payable (but excluding DD requirements) - would still be beatable by Santander's 123 (1.00% on £20,000); and RBS's Vantage and Lloyd's Bank's Club (both offering an effective 1.20% on £5,000).  Or (as you'd effectively be going straight into the "standard" aspect of the account), you'd receive 1% on £2,500 up to 01 May 2020, and then dropping to 0.25% on £1,500 from there.

Apologies if this was known/is not a new condition by Nationwide; I'm highlighting it following an earlier post talking about applying for new FDs this month, and because the suggested conditions do not fit with my previous experiences.

EDIT: removed reference to TSB as lower max. interest-payable amount (£1,500) would mean NBS's 1.00% on £2,500 would yield slightly more interest across 12 months (as TSB drops to 1.50% from 3.00% on 02 May 2020).

eskbanker

YellowStarling said:

Sorry to divert the thread slightly, but to those opening new FlexDirect accounts before 01 May 2020 (to lock in 12 months at 5% on £2,500 rather than 2% on £1,500), I've noticed this on their website today:

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

"To earn 5% AER (4.89% gross p.a.) interest on balances up to £2,500 you’ll need to pay in £1,000 a month, not counting transfers from other Nationwide accounts or Visa credits. If you’ve had a FlexDirect before, you won’t receive this offer again, unless your new FlexDirect account is in a different name or names."

Is this a new stipulation?  I have had multiple FDs in the past (the old sole and joint combo) and then opened fresh ones as the others 'matured', securing the 5% "introductory" rate each time.

No, it was announced in 2017, effective from January 2018.

https://forums.moneysavingexpert.com/discussion/5727599/flexdirect-latest-ts-cs-from-nationwide-effective-january

YellowStarling

eskbanker said:

YellowStarling said:

Sorry to divert the thread slightly, but to those opening new FlexDirect accounts before 01 May 2020 (to lock in 12 months at 5% on £2,500 rather than 2% on £1,500), I've noticed this on their website today:

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

"To earn 5% AER (4.89% gross p.a.) interest on balances up to £2,500 you’ll need to pay in £1,000 a month, not counting transfers from other Nationwide accounts or Visa credits. If you’ve had a FlexDirect before, you won’t receive this offer again, unless your new FlexDirect account is in a different name or names."

Is this a new stipulation?  I have had multiple FDs in the past (the old sole and joint combo) and then opened fresh ones as the others 'matured', securing the 5% "introductory" rate each time.

No, it was announced in 2017, effective from January 2018.

https://forums.moneysavingexpert.com/discussion/5727599/flexdirect-latest-ts-cs-from-nationwide-effective-january

Thanks eskbanker, that clearly passed me by (though I was struggling to understand why I myself hadn't 'refreshed' the accounts for some time, so perhaps I was once aware of this all along...!).

I suppose it's fair enough, as rates like that have always been described as "introductory"!  I suppose also, then, that opening a new FD before 01 May 2020 (when the account holder is not also "new") would give you only a few days at 1% on £2,500 before moving to the new rate of 0.25% on £1,500 from 01 May 2020 - as these are the 'default'/"standard" rates, there is nothing to be 'honoured' on the other side of the 01 May 2020 rates cliff.

[Deleted User]

What is RBS Vantage? A new account to launched?

Alexland

dahj said:

What is RBS Vantage? A new account to launched?

It's an add on for their current accounts:
https://www.bankofscotland.co.uk/bankaccounts/vantage.html