Today (27 November 2012), Nationwide is announcing the launch of FlexDirect, the Society’s first new current account in over 25 years.
FlexDirect will pay credit interest of 2% p.a./AER (fixed) for the first year on in-credit balances up to £2,500. After the first year, the account pays 1% p.a./AER (variable).
FlexDirect is a self-service account requiring minimum monthly funding of at least £1,000¹. Customers can open the account in branch, online or by telephone, but will be required to use Nationwide's online and telephone bank to carry out day-to-day transactions on their account. FlexDirect customers will 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.
Eligible customers are offered a three month fee free overdraft, after which arranged overdrafts are charged at £1 per day, with a maximum charge of £20 per month.
To help those intending to transfer their current account, the Society has a dedicated team which switches customer’s direct debits and standing orders for them. Customers are kept informed of progress via text updates. At the same time the Society offers an account transfer promise to contact a customer’s direct debit providers within ten working days, if not we give them £100.
Phil Smith, Nationwide’s head of current accounts, said: "FlexDirect offers customers a competitive rate of credit interest as well as providing them with access to exclusive deals on other Nationwide products. Supported by our Internet Bank, we feel this account will be a real hit with customers looking to get more from their current account.
"Nationwide continues to see an increase in the number of customers switching to the Society as people look at credible alternatives to the big banks. Switching current accounts is easier than people think. Our account transfer team will switch customer’s regular payments for them and will keep them informed of how the switch is progressing via text.
"Nationwide continues to offer competitive products with long-term good value, which is underpinned by a commitment to great customer service."
Notes to editors:
¹ Minimum monthly funding of £1,000 (excluding internal transfers). An underfunding charge of £5 is applied and no in-credit interest is payable, in any month where £1,000 is not credited.
- FlexDirect is open to new and existing customers aged 18 years and over
- Minimum monthly funding of £1,000 (excluding internal transfers). An underfunding charge of £5 is applied and no in-credit interest is payable, in any month where £1,000 is not credited. Single and joint account options available
- FlexDirect can be opened online, by telephone and in branch
- The account is operated using online or telephone banking
- 2% p.a./AER (fixed) is payable for the first 12 months on balances up to £2,500. After 12 months the account pays 1% p.a./AER (variable) on balances up to £2,500
- Credit interest is not payable on balances over £2,500
- Arranged overdrafts: £1 per day, capped at £20 per month
- Unarranged overdrafts: £5 per day, capped at £60 per month
- Fee free buffer (unarranged overdrafts): £10
- Paid and unpaid item fees: £5 each, capped at £35 per month
- Total unarranged overdraft charges capped at £95 per month
Exclusive deals available to reward FlexDirect customers, including:
- Exclusive credit card: The Nationwide Select Credit Card offers commission-free purchases abroad, unlimited cashback on all sterling purchases and introductory offers for purchases and balance transfers. 12.9% APR Representative (variable)
- Access to our lowest personal loan rate: Currently 6.3% APR Representative for loans £7,500 to £14,999 for up to five years
- Exclusive mortgage offers: Exclusive access to our Flexible five year tracker mortgage, with no product fee, no Early Repayment Charges, and free standard legal and valuation fees. Enjoy the peace of mind of a four year fixed rate, exclusively for main FlexAccount customers (early repayment charges apply). A £99 non-refundable booking fee is payable up front for both mortgages
- Preferential savings rates: Our Flexclusive savings accounts have been created exclusively for main current account customers and offers the reassurance of a rate guarantee
- Exclusive discount on car insurance: £50 off car insurance when buying a new policy (terms and conditions apply)*. Rated 5 Star by Defaqto with up to 75% no claim discount as well as a courtesy car as standard even if your car is written off or stolen (excludes third party only policies)
- Access to Simply Rewards – A website exclusively for Nationwide debit card and credit card customers, offering discounts on top brands.
Nationwide is the world's largest building society as well as the second largest savings provider and a top-three provider of mortgages in the UK. It is also a major provider of current accounts, credit cards, ISAs and personal loans. Nationwide has around 15 million members.
Customers can manage their finances in a branch, on the telephone, internet and post. The Society has around 16,000 employees. Nationwide's head office is in Swindon with administration centres based in Northampton, Bournemouth and Dunfermline. The Society also has a number of call centres across the UK.