E-saver to current account interest

dadsarmy

Hello

I have 2000 a month going into a current account with a Nationwide

There is a e-saver linked to this account at Nationwide

If I transfer say 1000 from e-saver to current account and then direct debit it from Nationwide to another Building Society - do Nationwide look upon that 1000 as coming from within Nationwide and transfer 1000 from the 2000 that is paid in every month?

In that case I would only receive interest on 1000 a month but have 2000 in there

Example

Wages in 2000 Balance 2000 at reasonable interest rate

Transfer from esaver 1000 Balance 3000 so 2000 at reasonable rate and 1000
at little interest rate

Direct debit from Nationwide of 1000 Balance 2000


Of this 2000 balance am I getting reasonable interest on 2000 or 1000?

Nationwide pay little interest on the current account money that is transfered from the e-saver

Am I thinking right here?

CLAPTON

interest is calculated on your daily balance

so each day they look at your closing balance and multiply by the daily rate and keep a running total. Its actually added to the a/c in accordance with the T&Cs (i.e. monthly or yearly or whatever)

noh

A little confusing but I think I understand what you are asking.
Nationwide will pay 4% interest on all the balance (upto a maximum of £3000) in the Flexaccount, regardless of its source, as long as you fund the Flexaccount with at least £1000 a month from a source external to Nationwide.
So in your example all the money in the Flex account will earn the higher rate of interest as you pay in in excess of £1000 from an external source.


Nigel

dadsarmy

Thanks so far

If I had say 20k in e-savings that I wanted to transfer out of Nationwide
When balance is 2000 or less in current account - transfer 1000 from e-savings to current account - then direct debit it to another building society

- do this say every couple of days at 1000 a time - and therfore get the 4% interest on the 20K?

Or is there a easier way to get money out of Nationwide without losing interest?

YorkshireBoy

For every day your £20K isn't in the e-Saver, you're losing £2.41

If you want to DD 'pull' your money from the FlexAccount to another savings account elsewhere...

Action the DD (on the other providers website) on Monday
Transfer your £20K from e-Saver to FlexAccount on Tuesday
Money transferred on Wednesday

Result = one days loss of interest = £2.41


If you want to BACS 'push' your money to the other provider...

Transfer £20K from e-Saver to FlexAccount on Monday (am)
Immediately send it to the other provider
Money arrives on Wednesday

Result = two days loss of interest = £4.82


(I've assumed you're a basic rate tax-payer)

dadsarmy

Great - thanks

I assumed I had to transfer from e-saver to current account (both Nationwide) on Monday then action direct debit at the other building society on the Tuesday