Customers with Nationwide can also get a £175 payment
Nationwide Building Society has clarified the rules for how customers can get a £75 payment. The issue came to light after a question from a customer over social media. The person wanted to clarify how the FlexDirect Account works, and how much they would need to pay in.
The current account pays 5 percent fixed for 12 months, and you can hold up to £1,500 in the account and get this rate. If you had the maximum £1,500 held in your account for the whole year, you would be paid £75 in interest.
The curious customer asked Nationwide: “Do I have to pay a minimum a month into my FlexDirect account?” The building society responded to explain the rules. The group said: “With the FlexDirect you can earn 5 percent AER (4.89 percent gross a year) fixed for the first 12 months.
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“We pay interest monthly on every penny you have in your account up to £1,500. Keep that much in your account the whole time, and you could earn up to £75 over the year.”
However, the building society warned the rate for the account will change. The provider said: “After a year, the interest rate is 1% AER (0.99% gross a year) variable. Apart from the interest mentioned above, there is no minimum amount you would need to pay into this account.”
The amount of interest you are paid is based on the balance in your account at the end of each day. Nationwide calculates the interest on the last day of each month, and you are then paid your interest on the first day of the next month.
You don’t earn any interest on amounts above the £1,500 limit. If you’re interested in opening a FlexDirect account, you may also want to check if you are eligible for Nationwide’s switch offer.
Nationwide will pay you £175 if you switch to a new or existing FlexDirect, FlexAccount or FlexPlus current account. To get the switching bonus, you need to request a switch using the Current Account Switch Service.
Your switch must include two active direct debits and has to be completed within 28 days. You also have to pay in at least £1,000 into the account and make one debit card payment, within 31 days of opening your account or of applying for a switch into an existing account.
If you secured the switch bonus as well as the maximum £75 interest payments, you would get an extra £250 in total.
