New Nationwide savings account

Uther · 2 Dec 2015 at 00:13

Launched today apparently, Flexclusive Regular Saver, one year account for Nationwide Flex account holders, seems a decent interest rate, 5% gross...

http://www.nationwide.co.uk/products/savings/flexclusive-regular-saver/features-and-benefits

robfosters · 2 Dec 2015 at 00:27

Maximum you can increase your balance is £6000 for the year. Only really worth it if you've got £10k plus to kick off with.

The_Abyss · 2 Dec 2015 at 00:31

This is quite close to the Santander 3% current account deal. I haven't worked it out but 5% a year on a regular saver will give something close to 2.6% total return, and Santander has some current account charges on top.

Probably good for those who have in excess of £20,000 cash and want to diversify a little.

Freakbro · 2 Dec 2015 at 06:47

robfosters said:
Maximum you can increase your balance is £6000 for the year. Only really worth it if you've got £10k plus to kick off with.

I don't think you can put a lump sum in to start with, it would only be £500 / month from the start.

But it is the best one on the market as the others, including the 6% offers from First Direct, HSBC and M&S, limit you to £250 - £300 / month, so the ability to deposit the higher amount beats the 1% extra interest

Edit : Actually the HSBC is 6% on £500 a month, but you need a Premier or Advance account, which come with some heftier requirements.

Uther · 2 Dec 2015 at 06:52

Yeah I was hoping you could whack a large lump sum in there, but I'm not sure that's the case, can't see any mention of it.

Freakbro · 2 Dec 2015 at 06:54

No, I've used a regular saver before and you are limited to that monthly increase, including from the first month.

But, I'm a Nationwide customer and this has just come at the right time, so I'll ring them today to confirm and let you know (though I'm 90% sure that's the case)

Uther · 2 Dec 2015 at 06:59

Thanks Freakbro! Be interested to find out.

Trifid · 2 Dec 2015 at 07:09

I tried to open one twice last night, transferring a lump sum. Both times resulted in a generic error and I now have two 5% saving accounts with no funds in them. Wonder if I can transfer £1000 a month between them?

Uther · 2 Dec 2015 at 07:26

I think you can only have one account.

[TW]Fox · 2 Dec 2015 at 07:57

If you already have the money it's nothing like as good as it looks and only really pays an effective 2.5%. This is because on average only half your money is in the account paying interest over the year as you can only drip it in at 500 quid a month.

Freakbro · 2 Dec 2015 at 08:01

[TW]Fox;28891041 said:
If you already have the money it's nothing like as good as it looks and only really pays an effective 2.5%. This is because on average only half your money is in the account paying interest over the year as you can only drip it in at 500 quid a month.

Yeah, these regular savers aren't that great if you're just transferring savings money into them, but after you've exhausted the other high interest current accounts it's about the next best thing for monthly savings via bank accounts.

Trifid · 2 Dec 2015 at 08:20

[TW]Fox;28891041 said:
If you already have the money it's nothing like as good as it looks and only really pays an effective 2.5%. This is because on average only half your money is in the account paying interest over the year as you can only drip it in at 500 quid a month.

What do you recommend for those who have a lump sum that they don't need to access for 1 or 2 years?

Freakbro · 2 Dec 2015 at 08:33

I have just checked and no, the intitial deposit can only be £500 as thought.

She is going to feed back the information though as I said it was slightly ambiguous not saying this and as the withdrawals section says up to £500,000 can be withdrawn by cheque - it's going to be hard to get £500,000 in there at £500 a month

Uther · 2 Dec 2015 at 08:36

Yeah, it's not clear from the advert. So, 6k at an effective rate of 2.5%...£150 after a year?
Santander cashback with 20k still looks like the better option then?

banja · 2 Dec 2015 at 08:42

I have a Nationwide acc so am eligible and have been looking into this. My back of a fag packet maths tells me if you put £500 in a month up to the max £6000 and don't touch it you'll net about £130 at the end year. Fair if you've got £500 a month to spare I guess.

Freakbro · 2 Dec 2015 at 08:46

Uther said:
Yeah, it's not clear from the advert. So, 6k at an effective rate of 2.5%...£150 after a year?
Santander cashback with 20k still looks like the better option then?

No, you'll still be better off putting that extra £500 a month in the NW account and leaving what you have in Santander

Say you have £10k in S123 at the minute and you put £500 a month in for the next 12 months. After account fee charges (remember they go to £5 from Jan?) you will have earnt £343.50 interest gross

If you kept that £10k in S123 and put the £500 in NW you would end up with £408.50 interest gross

MattU · 2 Dec 2015 at 08:50

It pays 5%, why do people insist on saying otherwise on these accounts? The fact that some money is in there for 12 months and some for only 1 should be pretty obvious.... you still get 5% while it is there.

Uther · 2 Dec 2015 at 09:17

I've opened one anyway, better than nothing...

Freakbro · 2 Dec 2015 at 09:21

Uther said:
I've opened one anyway, better than nothing...

Yea, I have done as well and I noticed in the T&Cs it does state £500 max initial deposit

norm · 2 Dec 2015 at 09:31

Freakbro said:
Edit : Actually the HSBC is 6% on £500 a month, but you need a Premier or Advance account, which come with some heftier requirements.

??

Put money aside each month and watch your balance grow with an HSBC Regular Saver. You can save up to £3,000 at a great interest rate that's fixed for 12 months - either 4% or 6% AER/gross.

= £250/month

This Nationwide deal is good because you can withdraw funds without penalty. Most other regular savers have strict rules in this respect.

So long as you drip feed the £500/month from another interest paying account e.g. Lloyds Club at 4% on £5000 you'll maximise your earnings.