Nationwide FlexDirect Current Accounts Offer Best Current Account Interest Rates on the Market
- Author Laura Ginn
- Published November 26, 2013
- Word count 632
Are you looking for a current account that not only allows you to handle your bills and everyday spending, but also pays you a little bit of interest on your money? Current account interest rates are usually very low, or even non-existent, but there is one account that offers an incredible 5% interest. That figure is more than twice as much as is paid on most savings account!
Meet the Nationwide FlexDirect Account
The account in question is the Nationwide FlexDirect account, which launched in late 2012 and began offering an interest rate well above the market average in March 2013. If you already have a Nationwide FlexAccount, then converting to the new FlexDirect is easy - simply make the request online using your usual online banking system and your account will be switched over within a few days, keeping the same account number and sort code. FlexDirect is also open to new customers, who can apply online, by phone, or in a Nationwide branch.
Too Good to Be True?
Perhaps five percent interest strikes you as sounding just a little too good to be true? Well, it must be said that there are a few limitations. The headline rate of 5% is only paid on the first £2,500 in the account; any additional balance over that amount earns no interest at all. If you are disappointed after reading that fact, remember that 5% interest on £2,500 still nets you £125 in one year, so the return is almost certainly worth the few minutes that you spend setting up the account.
The other bad news is that the five percent rate is an introductory rate; it only lasts for the first 12 months. After the first year, the interest rate drops to an unremarkable 1%. However, by that time smart savers will already have found a new high-paying account to move their money into.
What You Need to Do to Earn Interest on a FlexDirect Account
There is just a single requirement to keep your account eligible for 5% interest: keep paying at least £1,000 into the account each month. The money must come from an external source, such as an account held by another bank. Having your salary paid into your FlexDirect account is an easy way to meet this requirement.
The money you take out of the account has no impact on your eligibility for interest payments, so you can move the £1,000 that you are required to pay in straight back out again if you only want to use the FlexDirect as a source of interest rather than as your main current account. You also get a Visa debit card with the account, which you can use to withdraw cash for free from Nationwide and Link cash machines, or to spend money in shops and restaurants via a chip and PIN payment.
An Added Benefit for Nationwide FlexDirect Customers
There is one more benefit that you gain when you open a FlexDirect account. Nationwide customers with one of these accounts are eligible to apply for a Flexclusive ISA, which pays 2% interest on savings up to £5,760. Sure, 2% is not as impressive as the 5% you're getting on your FlexDirect current account, but the big advantage of an ISA is that all the interest earned on this type of account is completely tax free.
The Verdict
Despite its limitations, the FlexDirect account still beats most other current accounts in terms of the interest it pays. If you are looking for current account interest rates that reward you for storing a larger amount of money, then the Santander 123 account is likely to be a better option, as this account pays interest on balances of up to £20,000. However, the Santander 123 account does come with a monthly fee, so it is probably not worth it if you only have a small amount of money to store and spend.
Hannah Whiteoak knows that for many people current account interest rates hold little interest. If you want to find out more about interest rates and how they affect your current account check out the free information provided on the uSwitch.com website.
Article source: https://articlebiz.comRate article
Article comments
There are no posted comments.
Related articles
- Used Master Prime Inspection: 5 Critical Checks to Avoid Refurbished Scams
- Staying Charged: A Guide to Electrolyte Balance for Health and Exercise
- Creating a Profitable Business with PLR Planners and Printables
- How to Spend 48 Hours in Cape Town: A Quick Itinerary
- “Wounds That Time Couldn’t Heal: Watching The Best Years of Our Lives Through the Lens of Memory and Mourning.”
- Understanding an ACL Tear
- Top 5 Funniest Gag Gifts for Your Best Friend
- Why Second Hand Pianos for Sale Are a Smart Investment
- Finding the Right Piano Shop Near Me: A Guide to Second Hand Pianos
- “Mira Sorvino: From Oscar Glory to Hollywood Silence.”
- Ireland Sino Institute Launches 2025 China Internship Program
- “Beyond the Spotlight: The Rise and Fall of Dorothy Dandridge.”
- “Through the Mist of Venice: Revisiting Don’t Look Now and Its Haunting Grip on Grief.”
- The Art of Coaching: Cultivating Growth and Inspiration
- Creating a Holistic Backyard Retreat: Old World Elegance Meets Nature
- Understanding T1 and T2 Transit Documents in EU: Your Complete Guide
- Cryptonews.money: Your Ultimate Guide to Understanding Cryptocurrency
- 15 Basketball Dribbling Games and Passing Drills for Better Ball Handling
- Transdermal Progesterone Cream: Benefits for Hot Flashes and Menopause Symptoms
- Tepezcohuite: The Ancient Skin Health Secret You Need to Know
- Quiet Cars and Busy Calendars: The Overlooked Role of Chauffeurs in Post-July Corporate Travel
- 1031 Exchange
- Breaking Karmic Cycles, Creating a Shiva Altar with Deity Carvings and Sculptures from Mogul Interior
- The Art of Whimsical Carved Wall Art & Eclectic Décor
- “Hellfire and Heresy: Ken Russell’s The Devils and the Fury of Sacred Cinema.”
- Transform Your Bedroom into a Productive Haven: Ultimate Guide to Bedroom Inspirations with Desk
- “Heatwave: When Crime, Character, and Two Legends Collided in Michael Mann’s L.A.”
- Steam Vs. Scrub: The Best Chemical-Free Tools For Cleaning Tile Edges And Grout
- A Smart Solution for Clean Environments: Hygienic PVC Wall Cladding
- Choosing the Right Stainless Steel Panel Adhesive for Durable Wall Cladding Installations