Nationwide FlexDirect Current Account

S_T

Hello, 

In need of some advice regarding the Nationwide FlexDirect Current Account. The account states that you can get 5% AER interest on balances up to £1500 as long as you pay in £1000 per month. Interest is paid monthly. If I open this account, assuming I pay in £1000 and have £1500 in it, does this mean I will receive 5% of £1500 in interest per month? 

Any help appreciated! Thanks. 

PloughmansLunch

S_T said:

Hello, 

In need of some advice regarding the Nationwide FlexDirect Current Account. The account states that you can get 5% AER interest on balances up to £1500 as long as you pay in £1000 per month. Interest is paid monthly. If I open this account, assuming I pay in £1000 and have £1500 in it, does this mean I will receive 5% of £1500 in interest per month? 

Any help appreciated! Thanks. 

5% over the entire year, so roughly £6.20ish in interest per month on an average length month. I keep £1500 in the account and cycle the minimum payment in and out at the start of the month.

ColdIron

S_T said:

The account states that you can get 5% AER interest on balances up to £1500

AER stands for Annual Equivalent Rate
So you will get about £75 annually, you won't get £75 monthly

WillPS

Apologies for going a little beyond the remit of the original question - but unless you'd already applied I'd advise against taking a FlexDirect account right now.

In the last decade the interest % offered has been unbeatable but right now there are easy access accounts offering more, with less limitations.

No doubt Nationwide will improve their offer in time (or the market will fall around them leaving them highest) but since this is a 'once per lifetime' bonus it'd be a shame to waste it now.

boingy

Also bear in mind the 5% interest is only for the first year and then drops to a paltry 1%. Anything above £1500 earns nothing at all. However, if you fancy a punt on meeting their unknown criteria for their next "Fairer Share" pay-out it might be worth using a FlexDirect account to meet some of those unknown criteria (some folks are guessing that the 2024 criteria will be the same as this year).

Middle_of_the_Road

WillPS said:

Apologies for going a little beyond the remit of the original question - but unless you'd already applied I'd advise against taking a FlexDirect account right now.

In the last decade the interest % offered has been unbeatable but right now there are easy access accounts offering more, with less limitations.

No doubt Nationwide will improve their offer in time (or the market will fall around them leaving them highest) but since this is a 'once per lifetime' bonus it'd be a shame to waste it now.

Thanks, I've had £1,500 in the Flex direct since January. I've just moved the lot to Santander. As you said, it was a good interest rate for a long time, but there's better available now. I also have a 4% 1 year fixed rate with them maturing next month, so that will also be moved elsewhere. 

NorwichMan

Hope it's okay to ask a related question on the same thread. The flex direct terms say that to get the 5% interest you have to pay in £1000 or more each month. Does anyone know if that can be in multiple small payments that add up to over £1000, or to get the 5% do you have to make at least one incoming payment of at least £1000?

Zanderman

NorwichMan said:

Hope it's okay to ask a related question on the same thread. The flex direct terms say that to get the 5% interest you have to pay in £1000 or more each month. Does anyone know if that can be in multiple small payments that add up to over £1000, or to get the 5% do you have to make at least one incoming payment of at least £1000?

Multiples adding up to £1k should be fine. 

General_Grant

NorwichMan said:

Hope it's okay to ask a related question on the same thread. The flex direct terms say that to get the 5% interest you have to pay in £1000 or more each month. Does anyone know if that can be in multiple small payments that add up to over £1000, or to get the 5% do you have to make at least one incoming payment of at least £1000?

Multiple pay-ins totalling £1K or more satisfy the criterion.  

You will have seen that to count towards this sum the money must not come from another Nationwide account.  That apples whoever sends it - so if a relative with a Nationwide account was making a payment from that to your Flex Direct account it would not count towards the £1K.