Nationwide Flex Regular Saver Interest

GeoffTF

My Nationwide Flex Regular Saver matured yesterday. The proceeds were paid into an Instant Access Saver paying 1.1%. Not the best. The Flex Instant Access Saver pays 2.3%.

I paid £200 into the Regular Saver on the first of the month. The Instant Access Saver statement showed it as having been paid into the Instant Access Saver. It earned me 9p interest. I could not find anything about that in the Terms & Conditions.

I am only about 16p down on what I would have earned on that £200 with the Skipton, so it is not worth complaining. Nonetheless, others might want to avoid this outcome.

surreysaver

All building societies and banks mature accounts into lower paying accounts, unless they pay the money out to a nominated account

eskbanker

https://forums.moneysavingexpert.com/discussion/comment/82139317#Comment_82139317

You seem to have missed the point of OP's post - he's not objecting to the maturity into a lower-paying account as such but the misrepresentation of where the final deposit went and the consequent underpayment of interest.

charlieboycat

The Instant Access Saver is the same account (ie. same account number) as the RS. It is the same account. albeit now called something different (and with a lower interest rate). Any statement issued after maturity will be headed Instant Access Saver but will include all transactions subsequent to the previous statement - including those that took place while it was still an RS. My experience (with at least six Nationwide RS accounts over the years) is that interest at maturity is correct to the penny. I doubt you are 16p short.

GeoffTF

https://forums.moneysavingexpert.com/discussion/comment/82140297#Comment_82140297

I had not appreciated that. The email that they sent me said that the maturity value would be paid into an Instant Access Saver, not that the Flex Regular Saver would be converted into an Instant Access Saver. Very confusing. One of Nationwide's emails said that I could not open a new Flex Regular Saver until the day after the maturity of the old one, and I did not log into my account until then. I will check tomorrow, but it looks as though the 9p closing interest for the Instant Access Saver is one day's interest on the full balance at 1.1%, rather than 15 days interest on £200.

roose0

Although fairly unlikely, could it be that you withdrew four or more times during the 12-month term, and the RS account was earning a lower rate of about 1.05%?

GeoffTF

https://forums.moneysavingexpert.com/discussion/comment/82140396#Comment_82140396

Yes, that appears to be the explanation. I now have a final statement. It says that the interest rate is 1.25%. The final 9p interest payment is one day's interest on the maturity value at 1.25%.