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Nationwide Flexdirect current account
Hello,
Im musing over opening this current account. Am I right in thinking that if l deposit £500 into it, then take it back out and redeposit that will cover me for the minimum amount per month for the year (£1000 monthly)?
Also, just leave £1500 sitting in the account for the year to get the 5% saving?
I currently also have a flexaccount if that matters with Nationwide.
Comments
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That will work, providing you don't transfer the money in from your FlexAccount, because transfers from other Nationwide accounts don't count; it's got to come from a different bank.
3 -
As above, as long as each of the £500 deposits comes from outside Nationwide (so transfers from your Flex account would not count).
The interest is paid simply for having the balance and doesn't depend on any other factor (unlike some accounts with other banks which might require DDs being paid out).
Already having the Flex account with them might make it quicker to open the FlexDirect account.
2 -
I don't think that is quite right. If that were the case, I could simply open the account and put £1500 in and leave it there as a minimum balance. It also requires the £1000 to be paid in each month as well (even if I then took it out again). That last bit puts me off because I don't want it to be my principal account.
1 -
To qualify for interest, you do have to pay in £1000 per month, which doesn’t have to be in one deposit, and which can be withdrawn again immediately. It does have to come from a non Nationwide account though.
There is no need for Nationwide FlexDirect to be your ‘principal’ account, as long as you can meet the above.5 -
Don't forget you will only get the 5% interest for the first year. After that it drops to 1%. You can never have the 5% again, even if you close the FlexDirect account and open another one at a later date.
3 -
Yes I am aware of that. I doubt I will bother. I was just looking for a subsidiary/alternative current account to replace TSB.
1 -
I don't think you understood.
I was agreeing with EarthBoy that you could pay in £500 twice to make up the £1K needed. You yourself had acknowledged that it needed to be done monthly.
How do you think you would earn interest on the funds in your account if you don't leave the money in that account?
3 -
I think you have misunderstood me. I am perfectly happy to pay in a lump sum of £1500 and leave it there to earn the interest. I just don't want to pay in £1000 a month.
1 -
You can just bounce it in and out, I used it for a year as a space for spare cash not in higher interest accounts - moving it in and out is very easy
Sam Vimes' Boots Theory of Socioeconomic Unfairness:
People are rich because they spend less money. A poor man buys $10 boots that last a season or two before he's walking in wet shoes and has to buy another pair. A rich man buys $50 boots that are made better and give him 10 years of dry feet. The poor man has spent $100 over those 10 years and still has wet feet.
3 -
You could even withdraw £1000 to your external account, and then pay it back in the same day, or do the same with £500 twice.
Eco Miser
Saving money for well over half a century1
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