interest on balances up to...

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kezzygirl
kezzygirl Posts: 889 Forumite
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Hello all,

I have money in various accounts, currently my nationwide flexdirect pays 5% on balances up to £2500. I have put £2440 in to make way for the accumulated interest, this is probably a silly question but if I top it up and put over £2500 in, will I not earn interest on the amount over the £2500?

So, 5% up to £2500, but 0% from £2501 onwards? Will I continue to receive the 5%?

thanks, kez

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  • YorkshireBoy
    YorkshireBoy Posts: 31,541 Forumite
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    kezzygirl wrote: »
    I have money in various accounts, currently my nationwide flexdirect pays 5% on balances up to £2500. I have put £2440 in to make way for the accumulated interest
    Presumably you're making 4.89% gross p.a. on the other £60 somewhere else? If you're not then get it in the FlexDirect!
    this is probably a silly question but if I top it up and put over £2500 in, will I not earn interest on the amount over the £2500?
    This question is answered on their website isn't it?...
    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.


    http://www.nationwide.co.uk/products/current-accounts/flexdirect/rates-fees-overdrafts
    Their emboldening, not mine.
    So, 5% up to £2500, but 0% from £2501 onwards?
    £2,500.01 :)
    Will I continue to receive the 5%?
    See above.
  • jscol
    jscol Posts: 88 Forumite
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    Every month I make just over ten pounds interest on each of the flexdirect accounts we have. We have the full £2500 in each of them. We take the £10 out and transfer to our current account as we would get no interest on that £10 if we left it there.
  • kezzygirl
    kezzygirl Posts: 889 Forumite
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    thankyou...thought it was a stupid question lol but just wanted to check
  • kezzygirl
    kezzygirl Posts: 889 Forumite
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    jscol wrote: »
    Every month I make just over ten pounds interest on each of the flexdirect accounts we have. We have the full £2500 in each of them. We take the £10 out and transfer to our current account as we would get no interest on that £10 if we left it there.

    good idea, thanks. I will top them up to the £2500 now! I could always do a standing order for the date the interest is paid.
  • Eco_Miser
    Eco_Miser Posts: 4,708 Forumite
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    kezzygirl wrote: »
    good idea, thanks. I will top them up to the £2500 now! I could always do a standing order for the date the interest is paid.
    Two problems with that:
    1. the date the interest is paid varies (first working day of month (at end, after all other transactions have happened), which could be the fourth calendar day of month.
    2. the interest varies with the effective length of the month (not the calendar month).
    These make leaving exactly £2500 in the account for the whole month difficult.
    I use a manual faster payment on the second working day (about an hour ago as I type).
    Eco Miser
    Saving money for well over half a century
  • Alexland
    Alexland Posts: 9,653 Forumite
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    My interest just gets swept up as I manually cycle my salary through and fill the reg saver each month. Takes about 2 mins. Is it really worth worrying about a few days interest on 10 pounds?
  • lpgm
    lpgm Posts: 355 Forumite
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    Nationwide seems to pay interest at the end of the final day of the month, even if it's not a working day. I always see it in my account when I log in on the first of the new month.
  • TheShape
    TheShape Posts: 1,779 Forumite
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    You could set up a text alert for when the balance reaches £2501 which will prompt you to log on and shift the interest.
  • Eco_Miser
    Eco_Miser Posts: 4,708 Forumite
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    lpgm wrote: »
    Nationwide seems to pay interest at the end of the final day of the month, even if it's not a working day. I always see it in my account when I log in on the first of the new month.
    You're right. I was thinking of the various LBG banks. I have both, and it was late.
    However setting up an SO for the last day of the month can also be problematical.
    Eco Miser
    Saving money for well over half a century
  • kezzygirl
    kezzygirl Posts: 889 Forumite
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    wow, some great suggestions, thanks! We now have the max of £2500 in each of our flexdirects, I have just opened hubby a flexclusive saver also and deposited £250. I have a flexclusive saver too. I am not too fussed about missing a couple days interest, I check all of our accounts regularly anyway :)
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