Nationwide Flex Account 4% (when at least £1000 is credited)

thebeak

Hello,
I realise that this isn't a savings account. If £1000.00 or over is paid in....how many days interest does it earn? Do you get 4% for the remainder of the month (after the payment is made)? So if it's paid in towards the end of the month, you only get 4% up to the end of the month?
If anyone knows how this works please share
Thanks

caveat_emptor

You get 4%/365*number of days invested, paid at the end of the year.

thebeak

So..... as an example.....say you paid in £1000 or more on the 21st Jan, do you get the 4% interest from the 21 - 31st Jan? Then in February you are back to the 0.10%?

Or do you get the 4% for the whole month of January, i.e 31 days interest?

KTF

The easiest option would be to call them up or pop in to your local branch and ask. It doesnt appear to be defined on their website or in the account t&c.

MattB_4

I think if you meet the credit conditions you would get the rate over the calender month. So you pay in your £1k on the 21st to get your 4%, which you will receive 4%/(365*days in the month). Dont hold me to that though.

LittleVoice

If you pay in a total of £1K during a calendar month, you get 4% (calculated daily) on the money in your account during that month.

If you had a nil balance on 1 January, put in £1K on 21 January and left it there, you would earn 4% (pro rata) for the period to the end of the month.

If you left it in for the whole of February but didn't add anything, you would only get the 0.1% for February.

If you had £500 on 1 January and then added the £1K on 21 January, even if you took out £1.5K before the end of the month, you would earn 4% on all of the funds during the period it was in your account that month.

LittleVoice

MattB wrote: »

I think if you meet the credit conditions you would get the rate over the calender month. So you pay in your £1k on the 21st to get your 4%, which you will receive 4%/(365*days in the month). Dont hold me to that though.

To clarify - It doesn't work like that formula - otherwise you could put in £2K on 29 January and receive as much interest as if you had put the money in on 1 January!

rather than multiply (*) by "days in the month" (which would be 31 in January), you multiply by the number of days in that month that the money is in the account.

You may have meant that Matt but shortening the formula might mislead someone.

Johnhowell

Do be aware that NW Flexaccount has an upper limit of £3000 that would attract the higher interest rate because you paid in more than the £1000 that month.

Funds over £3000 attract the lower interest rate - so zap it over to the e-savings account attached to the Flexaccount (now with £3,000,000 limit rather than the old £50,000 limit)

Regards,
John

dadsarmy

Had this back from customer HQ

The interest on a Flex account is tiered, this is determined on the monthly credit into the Flex account. I have listed this information below:

- Monthly credit £0 - £499, Net Rate 0.08%, Gross Rate 0.10%, AER 0.10%

- Monthly credit £500 - £999, Net Rate 0.80%, Gross Rate 1.00%, AER 1.00%

- Monthly credit £1000+, Net Rate 3.20%, Gross Rate 4.00%, AER 4.00%

Milarky

dadsarmy wrote: »

Had this back from customer HQ

The interest on a Flex account is tiered, this is determined on the monthly credit into the Flex account. I have listed this information below:

- Monthly credit £0 - £499, Net Rate 0.08%, Gross Rate 0.10%, AER 0.10%

- Monthly credit £500 - £999, Net Rate 0.80%, Gross Rate 1.00%, AER 1.00%

- Monthly credit £1000+, Net Rate 3.20%, Gross Rate 4.00%, AER 4.00%

Hmm! The usual Nationwide trick of not answering the question asked...

All of the above is correct but even if you had asked them the OP's question: What's a 'month' mean for the purposes of the rate applicable? they wouldn't get it. The answer is, of course, a calendar month

If Nationwide wanted to make things easier for their customers they would drop the funding rule - as the rate of 4% is poor anyway. Additionally, the interest you receive isn't credited until December. They don't actually show you how much you earned in any given calendar month - just the year as a whole.

(Here's a challenge: find another current account that doesn't credit interest monthly?)

MattB_4

LittleVoice wrote: »

To clarify - It doesn't work like that formula - otherwise you could put in £2K on 29 January and receive as much interest as if you had put the money in on 1 January!

rather than multiply (*) by "days in the month" (which would be 31 in January), you multiply by the number of days in that month that the money is in the account.

You may have meant that Matt but shortening the formula might mislead someone.

Yes, sorry i did and you're quite right it was misleading. If only it did haha! Mind you, my money never stays in there long anyway. NBS pays me then almost immediately takes it all back again!