You are here: Home - Saving-Banking - News -

Nationwide increases FlexDirect interest to 5%

Written by:
Customers switching to the Nationwide FlexDirect current account from today can earn 5% interest.

The building society has increased the in-credit interest from 2% to 5% AER (4.89% gross) for new account customers from today, but the rate is only available on up to £1,500 for the first 12 months.

After 12 months, the account pays 0.25% AER (0.24% gross) variable. It can be opened online or in branch and customers will need to pay in £1,000 per month which doesn’t include transfers from other Nationwide accounts or Visa credits.

For completely new customers switching to Nationwide via the Current Account Switching Service (CASS), they will receive £100. For existing Nationwide members who switch their current account to it, they will receive £125.

Overall, switchers to the FlexDirect current account can receive up to £200 in the first year through interest and the cash switch incentive.

Further, the account offers an interest-free overdraft for the first 12 months (39.9% EAR variable after 12 months).

If you’re already a FlexDirect current account customer, you will continue to receive 2% in-credit interest. And if you’ve previously held a FlexDirect account, you won’t be eligible for the new, higher rate. But if you previously held a sole account, you would be eligible for the 5% rate on a joint account and vice versa.

Debbie Crosbie, chief executive at Nationwide Building Society, said: “Being able to offer highly competitive rates is one of the biggest benefits of mutuality. This market leading rate will help new and existing members make the most of their money, which is particularly important right now.

“The FlexDirect current account also has an introductory interest-free overdraft to give some peace of mind to those struggling financially and freeing them to focus on repaying other debts.”

In the last financial year, 604,000 people switched to Nationwide – a record for the mutual.

There are 0 Comment(s)

If you wish to comment without signing in, click your cursor in the top box and tick the 'Sign in as a guest' box at the bottom.

Autumn Statement: Everything you need to know at a glance

Yesterday Chancellor Jeremy Hunt made his first fiscal statement in the role, outlining a range of tax measure...

End of Help to Buy: 10 alternatives for first-time buyers

The deadline for Help to Buy Equity Loan applications passed on 31 October. If you’re a first-time buyer who...

Moving to an energy prepayment meter: Everything you need to know

As households struggle with the soaring cost of energy, tens of thousands of billpayers are expected to move o...

What will happen if rates change

How your finances will be impacted by a rise in interest rates.

Regular Savings Calculator

Small regular contributions can build up nicely over time.

Online Savings Calculator

Work out how your online savings can build over time.

DIY investors: 10 common mistakes to avoid

For those without the help and experience of an adviser, here are 10 common DIY investor mistakes to avoid.

Mortgage down-valuations: Tips to avoid pulling out of a house sale

Down-valuations are on the rise. So, what does it mean for home buyers, and what can you do?

Five tips for surviving a bear market mauling

The S&P 500 has slipped into bear market territory and for UK investors, the FTSE 250 is also on the edge. Her...

Money Tips of the Week

Privacy Preference Center