Nationwide FlexDirect present account evaluation

Prime paying curiosity, ethics and a good switching bonus make the account price contemplating once more.

There’s been a revamp of the account. Not solely does it provide one the very best rates of interest (for some), newbies may also now get 1% cashback on spending. Plus you may nab a good switching bonus. It additionally ranks effectively as an moral financial institution and scores extremely for customer support. Nonetheless, the constructing society has ditched the massive 0% overdraft.

So are these extras sufficient to make it your predominant account? Right here’s what you get with the FlexDirect, and whether or not it’s best to open up an account.

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What’s the Nationwide FlexDirect account?

The FlexDirect account is a present account from the Nationwide Constructing Society. It’s free to open and use, although you do need to pay in at the least £1,000 a month to get the curiosity. That doesn’t should be in a single go, or keep within the account.

You can not get the account if you have already got 4 or extra Nationwide present accounts.

In contrast to many rivals, Nationwide has a good community of branches you may entry throughout the UK, and there’s additionally a telephone assist line.

In account curiosity of 5%

Nationwide’s FlexDirect account is among the few present accounts that pay curiosity on balances held in the principle account. And it’s often a significantly better fee than you’ll get in regular easy-access accounts.

You will get 5% curiosity on financial savings – which is tough to beat proper now. The speed can be mounted, which you’ll get 5% for the complete 12 months.

And you’ll enhance your earnings should you’re in a pair. You possibly can every have an account, after which open up a joint account too, that means you’ll earn the 5% on £4,500.

It’s important to pay in £1,000 each month to qualify for the curiosity. This may’t be from one other Nationwide account.

Sounds good? Properly it has its limits.

First, there’s a essential rule that might be a difficulty – this fee is for first-time account holders solely. So should you’ve had the FlexDirect account earlier than, you received’t get the brand new fee, even should you open up a brand new account.

You additionally solely earn cash on the primary £1,500. Above this you get 0%. This implies in case you have the complete quantity doable within the account for 12 months you’ll make £75.

Additionally the speed additionally solely lasts for one 12 months (after that it drops to 1%), so it would be best to transfer your cash in 12 months.

1% cashback on spending

A brand new characteristic is cashback on spending with the debit card. It’s just for new prospects who’ve not had a FlexDirect up to now.

As with the 5% curiosity, this cashback is just for the primary 12 months. It’s additionally capped at £5 cashback every month, so it’ll solely apply to the primary £500 you spend every month.

Cashback received’t be paid on playing, crypto transactions or money withdrawals.

FlexDirect 0% overdraft

Sadly with the addition of the 1% cashback, Nationwide has ditched the sizeable 0% overdraft that was obtainable for the primary 12 months.

As a replacement there might be a £50 curiosity free buffer throughout all Nationwide accounts. It’ll be added from November 2024. Our information to the most cost effective overdrafts will aid you discover a bigger various – although there aren’t many choices left now.

Nationwide switching bonus

I’ve written about Nationwide’s financial institution switching deal intimately in a separate information, however listed below are the important need-to-knows:

Nationwide has an ongoing £175 incentive for financial institution switchers with no set finish date, however that would imply it goes any time. It’s open to new and present prospects, so should you open or improve to a FlexDirect account you’ll be eligible.

You possibly can solely declare the money as soon as on a private account, however in contrast to different banks, you will get an additional bonus should you swap a joint account (there’s only one cost for each of you on this). So a pair you would have three switching bonuses in complete.

Different Nationwide perks

Common saver 6.5%

There’s additionally a 6.5% paying common saver just for all Nationwide present account prospects. This may be overwhelmed by a handful of different suppliers, however isn’t a nasty guess.

Annual member bonus

Although there’s no assure it’ll nonetheless be on provide in 2025, for the final two years Nationwide has supplied members with an energetic present account and financial savings or mortgage product on high a £100 ‘Fairer Share’ bonus. Right here’s all the pieces you’ll want to learn about when Nationwide final supplied this free money.

Nationwide’s app

Thus far so good. Now the dangerous. The app is among the predominant causes I moved my predominant banking from Nationwide to Starling a number of years in the past.

There have been some huge enhancements, nevertheless it nonetheless falls wanting the options you get from challenger banks like Monzo, Starling and Chase.

So what does it do? You possibly can activate a few options that will help you save. One, Impulse Saver permits you to add cash to your financial savings account from the homescreen of the app.

The opposite is a round-up characteristic, as you see with many different banks. When you flip this on a small amount of cash might be transferred every time you spend. So say you spend £1.20 in your debit card, 80p will go to financial savings.

You’re additionally in a position to decrease your contactless restrict, freeze your card and block playing transactions.

My massive frustration is that you simply nonetheless want a card reader. Although a latest replace has diminished how typically that is required, together with for app funds, you may’t throw it away. And it’s not clear when you’ll and once you received’t want it – it simply says “for another issues”, which appears to be like like may nonetheless embrace establishing new payees. In fact, that may not be a nasty factor because it does add an additional layer of safety, nevertheless it’s not one thing many of the different banks I take advantage of require.

You can also’t entry card particulars, and it’s a number of clicks to search out and duplicate or share account numbers. There are additionally no monitoring or budgeting options.

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Account Ethics

One thing I’ve been fascinated by extra over the previous couple of years has been how the cash I maintain in a financial institution is getting used. It’s not sitting in a vault, it’s being invested and loaned by the financial institution. And that would imply it’s used for issues I actually don’t agree with – from supporting arms producers by means of to funding new oil pipelines.

If this bothers you too then Nationwide is thought to be probably the greatest choices. An enormous a part of that is that it’s a constructing society somewhat than a financial institution, which suggests it has to make use of 75% of its holdings to lend to house consumers.

That forestalls it lending massive quantities to unethical sources – nevertheless it additionally has a optimistic funding insurance policies. For instance your cash is not going to be invested in fossil fuels.

Nationwide can be a mutual – that means it’s owned by and run for the advantages of its prospects (or members) somewhat than shareholders.

Moral Client charges Nationwide forward of all the opposite main banks, so it’s guess if you wish to put your cash someplace aside from low-scoring banks resembling HSBC, Natwest, Barclays, Lloyds, Santander and co.

And whereas the top-rated present account for ethics is from Triodos, that comes with a £3 month-to-month payment and a extra restricted app, so Nationwide signify various.

Do you have to open a Nationwide FlexDirect account?

Andy’s Evaluation

With financial savings charges dropping on easy accessibility accounts, Nationwide’s FlexDirect has sprung again into competition. That 5% might be overwhelmed, however not with a set fee.

The £1,500 restrict for this fee might be a frustration for some (particularly for the reason that stability was £2,500 a number of years in the past), but when that’s not a fear and also you need to lock in a fee it’s price a glance – for one 12 months solely although.

And the switching provide is a improbable additional too, particularly should you’re a pair who may also swap a joint account.

The app has additionally improved massively, although it’s inferior to the providing from digital banks Monzo, Starling or Chase.

Nonetheless, the cashback is restricted by the £5 month-to-month cap. You possibly can beat this with Chase’s present account paying the identical fee however restricted to £15 again a month, or a bank card just like the American Specific Nectar.

However, vitally for my part, it’s an excellent account to go for should you’re involved about how your cash might be invested.

What do prospects say?

Buyer evaluations on our sister web site Sensible Cash Folks fee the FlexDirect account at 4.24 out of 5, liking the customer support and the provision of excessive avenue branches. The app is the place folks assume it may do higher.