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
---------------------------------------------------------------------------- Net interest earned on Credit Interest GBP 2,500 perProvider Account Rate Account Fee annum----------------------------------------------------------------------------Nationwide Building 5% AER (for 12 Society FlexDirect months) Nil GBP 100----------------------------------------------------------------------------Halifax Reward Current GBP 5 per month Nil GBP 60---------------------------------------------------------------------------- GBP 2 per 123 Current month (GBP 24Santander Account Up to 3% AER per annum) GBP 40---------------------------------------------------------------------------- Classic withLloyds TSB Vantage Up to 3% AER Nil GBP 40----------------------------------------------------------------------------HSBC Bank Account None Nil GBP 0----------------------------------------------------------------------------Royal Bank of Scotland Select None Nil GBP 0----------------------------------------------------------------------------NatWest Select None Nil GBP 0----------------------------------------------------------------------------
