We'd like to remind Forumites to please avoid political debate on the Forum. This is to keep it a safe and useful space for MoneySaving discussions. Threads that are - or become - political in nature may be removed in line with the Forum’s rules. Thank you for your understanding.

Nationwide FlexDirect Rate Decrease

Options
I opened my FlexDirect Account last August and I have been formed that my rate of 5% will drop down, as expected, to 1%. I'm wondering whether or not anybody has managed to convince Nationwide to extend this?

I have been told that I would need to wait a year and then I could close and open a new account and get 5% (assuming the product is still around), or alternatively I could open a second FlexDirect account now in a joint name (unfortunately I don't think this is an option for me) and start earning 5%. This sounds a little odd to me, and so I'm wondering if anyone else has had more success / had Nationwide give them a better offer?

I'm aware of most of the similar current accounts on the market however I'm already leveraging many these and it would be advantageous if I could find a way to keep the 5% rate!

Thanks!
«13

Comments

  • apt
    apt Posts: 3,190 Forumite
    Name Dropper First Post First Anniversary
    Options
    Haggle away, but I doubt you'll get anywhere. Best to use the account for a switching bonus and re-apply in a year's time if the 5% is still available.
  • bowlhead99
    bowlhead99 Posts: 12,295 Forumite
    Name Dropper First Post First Anniversary Post of the Month
    Options
    They have c. 6-7% of the UK current account market, and over £140 billion of savings supporting their £200 billion balance sheet.

    If you think they need your couple of thousand pounds enough to give you special terms and a continuing 5% risk free return on your old account, just ask and see.

    Or, close the account and come back as a new current account customer later, or launch a new joint account as a new joint customer, like they suggested.
  • colsten
    colsten Posts: 17,597 Forumite
    First Anniversary Photogenic Name Dropper First Post
    Options
    mageliken wrote: »
    I have been told that I would need to wait a year and then I could close and open a new account and get 5% (assuming the product is still around)

    You have either been mis-advised, or you have mis-heard, or you have mis-written. Under current terms, if you wait for a year to close your FlexDirect, you would have to wait another year before you could possibly get 5% on a FlexDirect again. If you close yours now, you can apply for another one in 12 months time (assuming they still do FlexDirects then), and if accepted, and if they still pay 5% for 12 months, you will get 5% for 12 months on that new account.

    Have you got a TSB Plus? And a TSB Monthly Saver?
  • mageliken
    Options
    bowlhead99 - Point taken!
    colsten wrote: »
    Under current terms, if you wait for a year to close your FlexDirect, you would have to wait another year before you could possibly get 5% on a FlexDirect again. If you close yours now, you can apply for another one in 12 months time (assuming they still do FlexDirects then), and if accepted, and if they still pay 5% for 12 months, you will get 5% for 12 months on that new account.

    You are quite right colsten, I should have said close and wait 12 months rather than wait 12 months to close.
    colsten wrote: »
    Have you got a TSB Plus? And a TSB Monthly Saver?

    TSB Plus yes, although I wasn't aware of the TSB Monthly Saver - thanks.
  • grey_gym_sock
    Options
    do you have to actually close the FlexDirect account? or can you convert it to FlexPlus or FlexAccount, and then convert it back to FlexDirect after 12 months?

    and a different question: are there any restrictions on converting an account between the 3 current account types? e.g. i have a FlexAccount, and it appears i could convert it to either FlexDirect or FlexPlus; but could i subsequently make further conversions in any direction?
  • colsten
    colsten Posts: 17,597 Forumite
    First Anniversary Photogenic Name Dropper First Post
    Options
    You are right, you could upgrade / side-grade to another Nationwide account. If you haven't done all the switch offers yet, you could also put the account to good use and make between £100 and £150, which is more than the interest it could yield in a year at 5%.
  • bristolleedsfan
    bristolleedsfan Posts: 12,158 Forumite
    First Post Name Dropper First Anniversary Photogenic
    edited 14 August 2015 at 1:10PM
    Options
    colsten wrote: »
    You have either been mis-advised, or you have mis-heard, or you have mis-written. Under current terms, if you wait for a year to close your FlexDirect, you would have to wait another year before you could possibly get 5% on a FlexDirect again. If you close yours now, you can apply for another one in 12 months time (assuming they still do FlexDirects then), and if accepted, and if they still pay 5% for 12 months, you will get 5% for 12 months on that new account.

    QUOTE]


    Not only was I informed both by a Branch ( In person) and via secure message reply that it is 12 Months from when the 5% rate ended, NOT 12 Months from when the 5% account was closed, when I opened a new 5% account via a Cashback Site during May 2015 the promotional rate of interest was automatically applied/added to the account.


    Branch gave me date when my last 5% promotional rate account finished ( I had 4 accounts during that earlier 12 Month period and they were not all closed as soon as 5% rate ended) and that was the basis on which I opened new account with as I said interest was automatically correctly applied


    Subject: RE: Managing my FlexAccount & FlexDirect - Tax & interest - Interest queries Date: 02/06/15 13:47


    Unique Tracking Number: 1........


    [FONT=Tahoma, Verdana]Unique Tracking Number: 00000 8
    [/FONT]
    [FONT=Tahoma, Verdana]Hi Mr ,,,,,,,

    [FONT=Tahoma, Verdana]Thanks for your message. You'll be pleased to know you are right.
    [/FONT][/FONT]

    The promotional interest rate of 5% AER is for the first 12 months of a new FlexDirect Account, after this it reverts to 1% gross AER.

    So you know for the future, to qualify for the promotional interest again, you will need to wait 12 months from the point you stopped receiving it, then open a new FlexDirect account.

    Yes again you are right, the interest, whether 5% or 1% is only payable up to £2,500 in the account.

    It's been a pleasure to clarify this for you and if there is anything else I can help you with, please don't hesitate to reply to this message or give our 24/7 Customer Service Centre a call on 0800 30 20 1. If abroad, please call +44 1793 656789.

    Kind Regards,

    .............
    Customer Consultant,

    e-Cont@cts
    http://www.nationwide.co.uk
  • colsten
    colsten Posts: 17,597 Forumite
    First Anniversary Photogenic Name Dropper First Post
    Options
    It's the T&Cs that prevail, and they couldn't be any clearer:
    If you have previously held the same Nationwide current account product in the last 12 months, you will not be entitled to the introductory rate or offer under this agreement.

    Up- / down - / side-grading or switching all close the FlexDirect.
  • grey_gym_sock
    grey_gym_sock Posts: 4,508 Forumite
    Options
    so, for an existing current account, is it possible to make any of the following up-/down-/side-grades whenever 1 wants to?

    FlexAccount -> FlexDirect
    FlexAccount -> FlexPlus
    FlexDirect -> FlexPlus
    FlexDirect -> FlexAccount
    FlexPlus -> FlexDirect
    FlexPlus -> FlexAccount
  • colsten
    colsten Posts: 17,597 Forumite
    First Anniversary Photogenic Name Dropper First Post
    Options
    I think you can, albeit not online in all cases. You might have to call them or pop into Branch. http://www.nationwide.co.uk/support/support-articles/how-to/how-do-i-upgrade-my-current-account
This discussion has been closed.
Meet your Ambassadors

Categories

  • All Categories
  • 12 Election 2024: The MSE Leaders' Debate
  • 344.2K Banking & Borrowing
  • 250.4K Reduce Debt & Boost Income
  • 450.1K Spending & Discounts
  • 236.3K Work, Benefits & Business
  • 609.7K Mortgages, Homes & Bills
  • 173.6K Life & Family
  • 248.9K Travel & Transport
  • 1.5M Hobbies & Leisure
  • 15.9K Discuss & Feedback
  • 15.1K Coronavirus Support Boards