Nationwide BS FlexiAcccount from 1 August 2008

bristolleedsfan

http://www.mirror.co.uk/news/money/city/2008/05/10/nationwide-fees-move-set-to-spark-fury-89520-20413204/


Nationwide fees move set to spark fury



10/05/2008



Millions of Nationwide customers have been shortchanged by a shake-up of its current accounts.

The UK's biggest building society says it's putting up overdraft charges by nearly a third and cutting the rate of interest paid.
Nationwide is the first major provider to announce such a move on standard accounts since the start of a legal battle over rip-off overdraft fees earlier this year.
If banks lose, they will have to slash their charges. Experts predict other banks and building societies will follow Nationwide's lead to recoup potential losses. Lloyds TSB, NatWest and RBS have also raised fees but only on packaged accounts held by fewer people.

Nationwide is increasing the authorised overdraft rate on its Flex account - which has four million customers - from 9.9 to 12.9 per cent from June 1.
At the same time, it is dropping the interest paid on credit balances from a maximum 3.75 to 3.5 per cent.
It is also raising the minimum monthly deposit required from £1,000 to £1,500, which is a blow to customers on lower incomes who will see their interest rate cut from 3.75 to two per cent.
Nationwide's Charlotte Sjoberg denied the move was linked to the unauthorised overdraft fees battle. "Our rates are still lower than our competitors," she insisted.
But Michelle Slade, of Moneyfacts, said: "Nationwide is penalising customers who arranged their overdraft first."

Old_Slaphead

Well spotted blf

Not that long ago that NW lifted authorised o/draft rates from 7.?%

FlexAccount is becoming a much less attractive option esp. if £1500+pm isn't paid in.

free4440273

NW: I am not impressed

bristolleedsfan

free4440273 wrote: »

NW: I am not impressed

Guess most of us will hope that Nationwide dont start charging for "everyday services", if they do ill be camping on :money: doorstep. :hello: :money:

Guess have to keep as much cash in Nationwide E-Saver moving it across to Flexi-Account only when neccesary.

Certain trends have been started elsewhere as well. _pale_

http://www.thisismoney.co.uk/saving-and-banking/article.html?in_article_id=441281&in_page_id=7

earlgrey_3

Hmm, raising the minimum monthly deposit required from £1,000 to £1,500 isn't going to do their cuddly mutual society image any good. Could hit a lot of those who have their pensions paid in and they won't be pleased at all.

Nationwide obviously noticed how popular the abolition of the 10p tax rate has been and decided to put the boot into the less well-off themselves. Must employ the same PR guru. :rolleyes:

Milarky

Something I have asked to do (through their online feedback forum) is bring in monthly interest instead of only paying it once a year. I know it is usually only pennies anyway, but name me another current account provider which doesn't both pay interest and charge interest (if applicable) monthly?

free4440273

bristolleedsfan wrote: »

Guess have to keep as much cash in Nationwide E-Saver moving it across to Flexi-Account only when neccesary.

absolutely blf: that's what i've been doing since jan 07 in any case: maximum £250 at the beginning of each month into e-savings (and make sure you do indeed transfer immediately at the beginning of each month, so as to reap the maximum interest:j

bristolleedsfan

free4440273 wrote: »

: maximum £250 at the beginning of each month into e-savings (and make sure you do indeed transfer immediately at the beginning of each month, so as to reap the maximum interest:j

Just out of "interest", do u know when interest starts/stops getting paid on funds that go into the E-Saver via Flexi-Account.

i.e. Cheques paid into "savings" accounts now get interest paid from maximum second working day following receipt, many savings accounts now pay interest from either day of receipt or day following receipt on cheque deposits.

However because cheques need to go through Flexi Account before getting moved into E-Saver, have to wait i guess 3 working days for the cheque to clear and then move the cleared funds on the 4th working day to E-Saver.

Do funds that are moved into the E-Saver earn interest from day of transfer or following day ?????????? and when funds are transferred from E-Saver to Flexi-Account does interest stop getting paid from day before the transfer from E-Saver-Flexi Account. ???????????????

As u can c by the scenerio their appears to be numerous days of interest lost due to fact that people cant pay cheques direct into Nationwide E-Saver. _pale_

Milarky

bristolleedsfan wrote: »

Do funds that are moved into the E-Saver earn interest from day of transfer or following day ?????????? and when funds are transferred from E-Saver to Flexi-Account does interest stop getting paid from day before the transfer from E-Saver-Flexi Account. ???????????????

As u can c by the scenario their appears to be numerous days of interest lost due to fact that people cant pay cheques direct into Nationwide E-Saver. _pale_

I believe NW are symmetric with their dates - i.e. you get interest for all the days between a deposit and withdrawal. Whether they count first date and ignore the last date - or vice versa - won't matter as you then earn interest for every 'day'.

As to cheques into flex accounts; NW are actually better than standard - allowing a cheque to be 'cleared' after 3 days rather than 4. Also remember the overdraft facility can be used from day '3' (after two days) - once all cheques have to start receiving interest - to move some (or all) of the value of the cheque into the E savings account for a better rate (5.05% better than 3.5%..) But to use this you need the biggest possible overdraft since the remainder of the overdraft has to be enough to cover any items due out the next day. (I have a 3K overdraft) Likewise, when being able to meet large payments without the need to 'overnight' funds in the current account - they can just be moved out of e savings the next day...

Also Flex account only really pays interest up to balances £3,000 - so a second Flex account gives you the ability to split a larger cheque amount and still earn interest from day 3 (on up to £6000)

LittleVoice

free4440273 wrote: »

absolutely blf: that's what i've been doing since jan 07 in any case: maximum £250 at the beginning of each month into e-savings (and make sure you do indeed transfer immediately at the beginning of each month, so as to reap the maximum interest:j

The account that you are transferring to is, I would imagine, the Regular Saver account. That has a maximum £250/month addition. The Nationwide eSaver account is for any amount of money - though the interest rate is lower than the Regular Saver for those who can pay in £250/month.

And you can pay money directly into the Regular Saver, it doesn't have to be via a Flex account. Deposits into the eSaver have to be via Flex.

bristolleedsfan

Milarky wrote: »

Also remember the overdraft facility can be used from day '3' (after two days) -

So if i pay a cheque for 500.00 into Flexi-Account say on a Tuesday Wednesday or Thursday the funds of which i intend to move into E-Saver, Overdraft covers the sum and any payments due out, when can i move the 500.00 into E-Saver without incurring any charges.

I realise of course that the best thing is to keep as little as possible in Nationwides E-Saver with its rates being so poor, just that sometimes its handy to have funds in it for a short period of time before it say gets spent on home improvements/ Car costs.

Ive recently started increasing my overdraft level for reasons that you cite. Ive just accepted offer to increase it to 2550.