A customer was surprised to be told they would have to pay an amount
Nationwide Building Society has explained its rules around extra charges that customers may have to pay. A customer asked the provider about how its overdraft interest charges work. They said: “All through October I was never above £50 overdrawn (which it tells me is interest free) yet I’ve still had overdraft charges this month?”
Guidance about overdrafts on the Nationwide website explains: “All of our current accounts offer an arranged overdraft, except FlexBasic. If you have a FlexPlus, FlexDirect or FlexAccount, there’s no interest on the first £50. After that, you’ll pay 39.9% a year compounded (variable).”
You may also be able to get an arranged overdraft with some Nationwide accounts which are interest-free, including with FlexStudent, FlexGraduate and FlexOne accounts. Customers can request an arranged overdraft when they apply to open an account or at any other time.
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Responding to the customer, Nationwide said: “You’ll always be given 28 days notice of any overdraft charges, which is provided in your monthly statement and will show charges that are due to leave your account in the next month. This means some charges can go out two months from when they were incurred.”
Nationwide does not offer unarranged overdrafts, which is when you go over your arranged overdraft limit or if your balance falls below £0 without an arranged overdraft in place. In these cases, the building society will simply stop any payments coming out of your account if you don’t have enough money.
You will not be able to withdraw cash or transfer money until your account balance is back in credit or within its limit. It’s good to avoid going into an unarranged overdrafts, as this can be bad for your credit score.
Nationwide recently announced it would keep open all its current branches, at least until 2030. This means all its 605 outlets will remain open offering in-person banking services.
However, the group does warn on its website: “There may be circumstances beyond our control that mean we have to close a branch. Or relocate it in the same town. We’ll only do so when there’s no other workable option.”
In branch, you can open an account with Nationwide and also deposit and withdraw cash. You can also get support with issues such as bereavement or setting up a power of attorney.
