Nationwide flexidirect - some questions.

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  • Eco_Miser
    Eco_Miser Posts: 4,708 Forumite
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    binaryuniverse wrote: »
    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.
    Why isn't £500 (or £250) going to earn 5% in NW Regular Saver?
    Eco Miser
    Saving money for well over half a century
  • binaryuniverse
    binaryuniverse Posts: 906 Forumite
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    At present, I need a readily available sum of cash, ready to go in to my LISA, at the end of March (the Tesco accounts should be just about full at that point, too). Over the course of a year, £3000 in a Tesco account (if full, of course) returns slightly more interest over £250pm in the NW RS. Although I have been paying in £300pm to both, so no, I'm not maximising the interest potential there. But like I say, readily available is a requirement. Hence why I haven't opened the RS yet.

    The FlexDirect 5% deal ends in May so I'll start shipping it out in a NW RS and First Direct RS.
    By the time it's time to dump the next lot in to the LISA for year 2, I should have a decent enough amount readily available so I can not worry about that.
  • 10_66
    10_66 Posts: 3,269 Forumite
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    I've been given conflicting information by Nationwide about what you should do with a Flex Direct account once the 5% drops:

    A) Close the account and wait for 12 months before reapplying.
    B) Leave it open, and the 5% interest becomes payable 12 months after the interest rate drop.

    In the past I've gone down the option A route, unaware that option B was possible. Can anyone confirm that option B is definitely possible?
  • david78
    david78 Posts: 1,654 Forumite
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    10_66 wrote: »
    I've been given conflicting information by Nationwide about what you should do with a Flex Direct account once the 5% drops:

    A) Close the account and wait for 12 months before reapplying.
    B) Leave it open, and the 5% interest becomes payable 12 months after the interest rate drop.

    In the past I've gone down the option A route, unaware that option B was possible. Can anyone confirm that option B is definitely possible?

    B) doesn't work. You need to close the account or transfer it away (A) or downgrade it to a FlexAccount. Then wait 12 months if you want to open a new one.
  • 10_66
    10_66 Posts: 3,269 Forumite
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    david78 wrote: »
    B) doesn't work. You need to close the account or transfer it away (A) or downgrade it to a FlexAccount. Then wait 12 months if you want to open a new one.

    Thank you. A) is what I've done in the past. I had to ring N'wide last week and it was only then that one of their staff mentioned B). Their inconsistency doesn't change (rolls eyes).
  • Imvrasos
    Imvrasos Posts: 81 Forumite
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    I remember a dedicated thread for the flex direct interest increase, where several customers followed B, with the instant down and upgrade. Some of them had actually the 5% re-instated for them, without any down/upgrade on the account.

    I am 9 months in the 1% period, and am now considering switching, if option B has been explicitly withdrawn by the bank...
  • Kernel_Sanders
    Kernel_Sanders Posts: 3,617 Forumite
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    Imvrasos wrote: »
    I am 9 months in the 1% period, and am now considering switching, if option B has been explicitly withdrawn by the bank...
    Same here, for my mother's account. If I downgrade now, will the one year waiting period still end in January? I suspect not.
    Also, how would this affect switching into NW, as I'm considering closing her Santander 123 a/c.
  • Eco_Miser
    Eco_Miser Posts: 4,708 Forumite
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    edited 10 October 2017 at 6:17PM
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    binaryuniverse wrote: »
    Over the course of a year, £3000 in a Tesco account (if full, of course) returns slightly more interest over £250pm in the NW RS.
    But those choices employ differing amounts. The optimum (assuming no new money) is to move the £3000 from Tesco to NW RS over the year.
    The NW RS is instant access, you don't need to complete the year if you need to feed LISA.
    Eco Miser
    Saving money for well over half a century
  • binaryuniverse
    binaryuniverse Posts: 906 Forumite
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    Eco_Miser wrote: »
    The NW RS is instant access, you don't need to complete the year if you need to feed LISA.

    I noticed that, after I looked a bit further in to it, the other day.
    I might look in to opening one, in a couple of months. Possibly in the new year, once Christmas is out the way.
  • kezzygirl
    kezzygirl Posts: 889 Forumite
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    I have a quick question, both hubby and i have sole flexdirect and flex saver accounts, can we also open one of each jointly to reap the 5%?
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