The Nationwide FlexDirect account offers one of the highest interest rates on the market. However, this rate only lasts for the first 12 months and is only open to customers who haven’t had an account with the building society in the last year.
As the cost of living crisis continues there has never been a more important time to make sure people are getting the best savings rate.
Following the Bank of England base rate increase on Thursday, savers are encouraged to look around to get the best rate possible.
The Nationwide FlexDirect account offers:
- Minimum pay-in: None (£1,000/month to get the interest)
- Interest: Five percent AER fixed for a year on up to £1,500
- Arranged overdrafts: Zero percent AER variable for one year.
Money Saving Expert founder Martin Lewis recently named Nationwide as one of his “top for savers” accounts in his weekly MSE newsletter.
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If someone has had a FlexDirect account previously then they won’t get the high rate and will only be offered a lower interest rate of 0.25 percent.
After 12 months, the interest rate on the account also drops to 0.25 percent so, after one year, people may want to look elsewhere for a better interest rate offer.
Nationwide calculates the interest rate on the last day of each month and pays it on the first day of the next month.
There are no withdrawal limits on the account so people can access their cash whenever they like.
This is a great option for people who do not want to lock away their cash into a saving account to get a high interest rate offer.
Nationwide Building Society has also announced it is launching a new issue of one of its most popular savings accounts.
It is introducing new issues of its Fixed Rate Online Bonds.
The two particular savings accounts which will be affected are the Two Year Fixed Rate Online Bond and the Three Year Fixed Rate Online Bond, with one of the products offering a 4.20 percent rate.
These savings accounts, and their attached interest rates, are available for balances of £1 or more.
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Savers interested in taking advantage of this offer can open either of the Online Bonds account through the Nationwide website, Internet Banking or the financial institution’s app.
At the beginning of this month, the building society carried out rate increases on all of its off-sale variable rate savings accounts.
As a result, Nationwide increased interest rates across this range by up to 1.50 percent in a major boon for savers.
Among the affected accounts were the Flexclusive Regular Save, Start to Save 2 and the Help 2 Buy ISA.
Tom Riley, the director of Retail Products at Nationwide Building Society, outlined last month why interest rates have been hiked in recent months.
Mr Riley explained: “We remain committed to supporting savers, which is why we have increased rates on all our off-sale savings accounts.
“In recent months, our average deposit rate has been at least 70 percent higher than the market average, demonstrating our mutual difference.
“Helping people develop a savings habit, particularly at this time, is core to the ethos of a building society.
“For this reason, one of our biggest increases was made to our regular savings accounts, which we hope will encourage those that can put money away to do so.”