LONDON, UNITED KINGDOM -- (Marketwire) -- 03/07/13 -- From 1 March 2013, Nationwide's FlexDirect current account will pay a market-leading rate for credit interest of 5% AER fixed for the first year on credit balances up to GBP 2,500. After the first year, the account pays 1% gross p.a./AER (variable) on credit balances up to GBP 2,500.
Customers requiring an overdraft will benefit from the introductory offer of no arranged overdraft charges for 12-months, after which a reduced daily usage charge of 50p will apply on arranged overdrafts of GBP 10 or more.
Existing FlexDirect customers will see the credit interest on their account increased to 5% AER for an additional 12-months, not just for the remainder of their initial introductory term. These customers will also benefit from the introductory overdraft offer of no arranged overdraft usage charges for the 12 month period.
FlexDirect requires minimum monthly funding of at least GBP 1,000(1). The self-service account can be opened in branch, online or by telephone, but customers will be required to use Nationwide's online, mobile and telephone banks to carry out day-to-day transactions on their account. FlexDirect customers also have access to:
-- Nationwide's range of 'Flexclusives' including exclusive savings,
mortgages, credit cards and personal loan deals
-- Simply Rewards - a website offering discounts on a range of products and
services from top consumer brands
Switching current accounts is easier than people think. Nationwide has a dedicated team which switches customer's direct debits and standing orders for them. Customers are kept informed of progress via text updates.
Phil Smith, Nationwide's head of current accounts, said: "Nationwide continues to see record numbers of customers switching to the Society as people continue to look for a credible alternative to the big banks.
"FlexDirect offers a market-leading credit interest rate of 5% AER, a rate that is likely to hold wide appeal in a market where many bank accounts pay little or no interest.
"As a demonstration that Nationwide is "On Your Side", existing FlexDirect customers will not miss out. The market-leading credit interest rate and introductory overdraft offer will be reset on their accounts for an additional 12-months."
How FlexDirect's credit interest compares against the big banks:
Source: Competitor websites and Nationwide - 22.2.2013
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Net interest
earned on
Credit Interest GBP 2,500 per
Provider Account Rate Account Fee annum
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Nationwide
Building 5% AER (for 12
Society FlexDirect months) Nil GBP 100
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Halifax Reward Current GBP 5 per month Nil GBP 60
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GBP 2 per
123 Current month (GBP 24
Santander Account Up to 3% AER per annum) GBP 40
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Classic with
Lloyds TSB Vantage Up to 3% AER Nil GBP 40
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HSBC Bank Account None Nil GBP 0
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Royal Bank of
Scotland Select None Nil GBP 0
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NatWest Select None Nil GBP 0
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Notes to editors:
(1) Minimum monthly funding of GBP 1,000 excludes internal transfers.
Account Eligibility
-- FlexDirect is open to new and existing customers aged 18 years and over
-- Minimum monthly funding of GBP 1,000 (excluding internal transfers).
-- Single and joint account options available
Account Operation
-- FlexDirect can be opened online, by telephone and in branch
-- The account is operated using online or telephone banking
Credit Interest
-- 5% AER (4.89% gross p.a.) fixed is payable for the first 12 months on
balances up to GBP 2,500. After 12 months the account pays 1% gross
p.a./AER (variable) on balances up to GBP 2,500
-- Interest is paid monthly
-- Credit interest is not payable on balances over GBP 2,500
Overdraft daily usage fees
-- Arranged overdrafts: 50p per day
-- Arranged overdraft buffer of GBP 10. No overdraft charges apply on
arranged overdrafts of less than GBP 10
-- Unarranged overdrafts: Fee free buffer of GBP 10
-- Unarranged overdrafts of over GBP 10: GBP 5 per day, capped at GBP 60
per month
-- Paid and unpaid item fees: GBP 5 each, capped at GBP 35 per month
-- Total unarranged overdraft charges capped at GBP 95 per month
Flexclusives
Exclusive deals available to reward FlexDirect customers, including:
-- Exclusive credit card: The Nationwide Select Credit Card offers
commission-free purchases abroad, unlimited cashback on all sterling
purchases and introductory offers for purchases and balance transfers.
12.9% APR Representative (variable)
-- Access to our lowest personal loan rate: Currently 5.9% APR
Representative for loans GBP 7,500 to GBP 14,999 for up to five years
-- Exclusive mortgage offers: Exclusive access to our Flexible five year
tracker mortgage, with no product fee, no Early Repayment Charges, and
free standard legal and valuation fees. Enjoy the peace of mind of a
four year fixed rate, exclusively for main FlexAccount customers (early
repayment charges apply). A GBP 99 non-refundable booking fee is payable
up front for both mortgages
-- Preferential savings rates: Our Flexclusive savings accounts have been
created exclusively for main current account customers
-- Exclusive discount on car insurance: GBP 50 off car insurance when
buying a new policy (terms and conditions apply) Rated 5 Star by Defaqto
with up to 75% no claim discount as well as a courtesy car as standard
even if your car is written off or stolen (excludes third party only
policies)
Customers also have access to Simply Rewards - A website exclusively for Nationwide debit card and credit card customers, offering discounts on top brands. Further details can be found at http://www.nationwide.co.uk/current_account/latest_deals/simply-rewards.htm.
AER Stands for Annual Equivalent Rate and illustrates what the interest rate would be if interest was paid and compounded once each year. The gross rate of interest is the interest rate payable before any income tax is deducted (if you do pay tax). The net rate of interest is the interest payable after any income tax is deducted (if you do pay tax).
About Nationwide
Nationwide is the world's largest building society as well as the second largest savings provider and a top-three provider of mortgages in the UK. It is also a major provider of current accounts, credit cards, ISAs and personal loans. Nationwide has around 15 million members.
Customers can manage their finances in a branch, on the telephone, internet and post. The Society has around 16,000 employees. Nationwide's head office is in Swindon with administration centres based in Northampton, Bournemouth and Dunfermline. The Society also has a number of call centres across the UK.
Find recent press releases and photos at the Nationwide Media Centre: www.nationwide.co.uk/mediacentre
Twitter: @NationwidePress
YouTube: http://www.youtube.com/user/NationwideBSocietyUK
