Nationwide Start-to-Save

Descrabled

I have now made my final payment for January to ensure my participation in the prize draw.

I then have a peculiar account from February to the maturity date. As far as I can see, from the T&C, there is no maximum nor minimum payment stipulated and there are no restrictions on the number of payments or withdrawals. 

So, am I correct, that from February it becomes an easy access account with an interest rate of 5.5%?

schiff

Easy access at 5.5% is unlikely.

Descrabled

Correction:

T&C contains "You can’t increase the amount of money in your account (the balance) by more than £50 at any time during a Calendar Month."

So you can withdraw any amount. You can only add up to £50 above start of month balance.

Still quite useful

david72

I wouldn't be entirely surprised if Nationwide add an extra prize draw date for this account in the future, given that there are still quite a few months until the accounts reach the end of their terms. If I remember rightly, they later added at least two(?) extra prize draws for the fairly similar Start to Save issue 1 account?

Kim_13

david72 said:

I wouldn't be entirely surprised if Nationwide add an extra prize draw date for this account in the future, given that there are still quite a few months until the accounts reach the end of their terms. If I remember rightly, they later added at least two(?) extra prize draws for the fairly similar Start to Save issue 1 account?

They did, however given the greater number of months funding required to be entered into a draw (six versus three for Issue 1, IIRC) I think the chances of extra draws are slimmer this time. If they don’t change the draw frequency, the next draw would be in August. I opened mine on day 1 I believe and it matures in June. 

david72

Good point: I hadn't realised that the earliest opened accounts would be reaching the end of their term quite as soon as that. Maybe they wouldn't add an extra draw, then, but after the last prize draw they might find a lot of account balances gradually sliding across to something like Principality's 2 Year Healthy Habits Saver Bond (6%, also max £50/month deposit, although no withdrawals apart from early closure, and no prize draws), unless they quickly come up with a competitive issue 3 account!

Kim_13

david72 said:

Good point: I hadn't realised that the earliest opened accounts would be reaching the end of their term quite as soon as that. Maybe they wouldn't add an extra draw, then, but after the last prize draw they might find a lot of account balances gradually sliding across to something like Principality's 2 Year Healthy Habits Saver Bond (6%, also max £50/month deposit, although no withdrawals apart from early closure, and no prize draws), unless they quickly come up with a competitive issue 3 account!

Very true - I’ll leave mine until March and if no news, it’ll be funding most of my RS’s for that month.

On an earlier point about it effectively becoming an Easy Access, my interpretation was that it always could be used that way. It was just that if you did increase the balance by more than £50 (as opposed to say pay in £75, which would need to be possible if someone withdrew £50 and still wanted to be able to qualify for the draw) you would cease to be eligible for the forthcoming draw.

allegro120

david72 said:

Good point: I hadn't realised that the earliest opened accounts would be reaching the end of their term quite as soon as that. Maybe they wouldn't add an extra draw, then, but after the last prize draw they might find a lot of account balances gradually sliding across to something like Principality's 2 Year Healthy Habits Saver Bond (6%, also max £50/month deposit, although no withdrawals apart from early closure, and no prize draws), unless they quickly come up with a competitive issue 3 account!

I don't think providers are competing on £50 p/m field.  These products are designed for getting more customers on board,  providers don't intend to make profit directly from accounts like this.  If the number of customers decrease they will introduce or reintroduce another perk.  In case of Nationwide they might reintroduce switching offer if they need to.

In my case, I have both, Start-to-Save and Healthy Habits, and don't plan to ditch one if favour of another. "Prize Draw" gimmick doesn't bother me, I never win prizes, the only reason I'm in Start-to-Save is the interest rate - if NW reduce it to below the current top EA I will withdraw.

gb901

Only reason I opened the account was a chance to win £250!