Nationwide flexidirect - some questions.

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  • BobQ
    BobQ Posts: 11,181 Forumite
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    mt99 wrote: »
    If you upgrade you will lose your travel insurance and never be able to get it back again

    you might instead consider opening a FlexDirect account whilst keeping your Flex Account ie have two accounts


    You can convert back
    Few people are capable of expressing with equanimity opinions which differ from the prejudices of their social environment. Most people are incapable of forming such opinions.
  • TheShape
    TheShape Posts: 1,779 Forumite
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    mt99 wrote: »
    If you upgrade you will lose your travel insurance and never be able to get it back again

    you might instead consider opening a FlexDirect account whilst keeping your Flex Account ie have two accounts
    BobQ wrote: »
    You can convert back

    You won't get the travel insurance back though.
  • justpassingthrough24
    justpassingthrough24 Posts: 50 Forumite
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    Mogley wrote: »
    3) Keep a maximum balance of £2500 in the flex direct account. You have to pay £1k/month into the account for the 5% interest, but that money can be transferred back to your existing account so that you maintain £2.5k balance. Set up a standing order from your existing account for £1k and setup the matched standing order from the flexdirect account on the same day.

    Am I right in thinking if your balance exceed £2500 at any stage you won't receive the 5% interest? Isn't that impossible to achieve if you end up having to transfer in £1000 at some stage every month? Forgive me for my ignorance but what would be the best way around this?
  • YorkshireBoy
    YorkshireBoy Posts: 31,541 Forumite
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    justpassingthrough24 wrote: »
    Am I right in thinking if your balance exceed £2500 at any stage you won't receive the 5% interest?
    No, you're not right. From their website...
    In plain English this means, you'll earn interest on the first £2,500 of your balance each month but you won't get any interest on any part of your balance over £2,500.
    Their emboldening, not mine.
    Isn't that impossible to achieve if you end up having to transfer in £1000 at some stage every month?
    It's not a regular saver...it's a current account! You can withdraw as well as deposit.
    Forgive me for my ignorance but what would be the best way around this?
    Read the information about the account on their website would be my advice.
  • justpassingthrough24
    justpassingthrough24 Posts: 50 Forumite
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    YorkshireBoy wrote: »
    No, you're not right. From their website...Their emboldening, not mine.It's not a regular saver...it's a current account! You can withdraw as well as deposit.Read the information about the account on their website would be my advice.

    Thanks for clarifying. I asked because I read above that you'd need to keep the maximum balance at £2500 and so would need to transfer money out every month as well as in. Makes sense for me to just have a read of the website :o

    By that logic, I'd be ok to start with £2500 and transfer in £1000 every month?
  • YorkshireBoy
    YorkshireBoy Posts: 31,541 Forumite
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    justpassingthrough24 wrote: »
    By that logic, I'd be ok to start with £2500 and transfer in £1000 every month?
    £2.5K would qualify as the first month's funding. Then, from (calendar) month 2 onwards, a pair of cross-firing SOs (£1,000 in / £1,008 out) would automate things.
  • justpassingthrough24
    justpassingthrough24 Posts: 50 Forumite
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    YorkshireBoy wrote: »
    £2.5K would qualify as the first month's funding. Then, from (calendar) month 2 onwards, a pair of cross-firing SOs (£1,000 in / £1,008 out) would automate things.

    This may be another silly question, but why would I need to transfer £1008 out? Could I not just have an SO of £1000 going in each month?
  • binaryuniverse
    binaryuniverse Posts: 906 Forumite
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    edited 9 October 2017 at 7:52AM
    Because you don't get interest on that extra £1008 (£1000 going in, and £8 interest for that month (although it's more like £10)).
    So it makes sense to put that £1008 in a different account where it can gain interest.

    I do exactly this with a Nationwide account and 2 Tesco bank accounts. The NW is full with £2500, but I transfer £1000 in to it, and then transfer it back out, with £610 being split, and going to my Tesco accounts, and the £400 going back to my main account for bills and such. Once they are full, my TSB account, at 3%, gets filled up.
    When the NW 5% offer ends I'll start moving the money in to regular savers and/or my Lifetime ISA.

    If that seems like too much hassle, then you could easily open a NW regular saver account, and put £250 a month in there. But that still leaves you with £760 not gaining any interest. Then, in month 2, it's £1520 not gaining interest. In month 3 it's £2280, 4 it's £3040. That's a lot of potential interest being wasted.

    But yes, you CAN pay in £1000 a month and just leave it there. It's just not the most money saving thing to do. ;)
  • Zanderman
    Zanderman Posts: 4,682 Forumite
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    binaryuniverse wrote: »
    But yes, you CAN pay in £1000 a month and just leave it there. It's not the most money saving thing to do. ;)

    Unless, of course, you actually intend to use the FlexD as your main current account (which is probably a novel idea to most people on here!) in which case putting £1000 in may be essential to cover your everyday expenses and bills.

    But if you're just using the FlexD for interest don't fill it up with non-interesting earning money!
  • YorkshireBoy
    YorkshireBoy Posts: 31,541 Forumite
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    binaryuniverse wrote: »
    Because you don't get interest on that extra £1008 (£1000 going in, and £8 interest for that month (although it's more like £10)
    Apologies, don't know why I put £8. :o
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