FlexOne: A current account for the next generation

Nationwide’s new youth account is fee-free, with a range of benefits including exclusive access to a competitive regular savings account offering 3.50% gross p.a./AER*

29 October 2014

Today (29 October 2014) Nationwide Building Society announces the launch of FlexOne, the Society’s first current account aimed at young people.

FlexOne is more than just a current account; it provides a range of competitive benefits to suit the lifestyles of young people aged 11 to 17¹ while also helping to educate them about money.

It’s an easy-to-use current account that gives young people control over their finances. It includes features such as access to a competitive savings account, no fees, innovations such as 24/7 customer support via a dedicated FlexOne Twitter Handle, contactless cards and Nationwide’s top-rated mobile banking app. FlexOne also comes with a range of added value extras including 25% off at Vue cinemas and online content designed to provide customers with help and guidance on safely managing their money.

Paul Wootton, Nationwide’s Head of Product Management for Current Accounts, said: “Before we started developing FlexOne, we asked young people what’s important to them. They said they wanted a current account that’s easy to use, has no fees or charges, helps them stay in control of their money, offers added value benefits such as a gift or special offers, gives interest when saving money and provides help and advice². FlexOne has been designed with this in mind.”

Benefits of the new account include:

  • Credit interest of 1% p.a/ AER on credit balances up to £1,000.
  • Fee-free. The account has no fees or charges.
  • Exclusive access to a competitive savings account (FlexOne Regular Saver), 3.50% gross p.a./AER*.
  • A dedicated @YourFlexOne Twitter handle to answer customer questions 24 hours a day, in addition to existing support channels (online, branch and telephone).
  • Contactless technology, enabling young people to pay for items up to £20 in a fast, easy and safe way (available if they select a Visa debit card and not a cash card).
  • Online Banking, Mobile Banking, Text Alerts and Impulse Saver giving the flexibility to easily manage money at any time on the go.
  • 25% off at Vue Cinemas for a year for FlexOne members and a friend or parent, helping customers save money on the things they most enjoy. Based on a child and parent going to the cinema once a week, they could save over £200³ across the year.
  • A range of interactive and enjoyable educational support and tools, via the Nationwide Education website, to help young people feel confident when managing their finances and make informed decisions. Resources include videos, fun interactive games, factsheets, worksheets, easy to understand glossaries of financial terms and much more, all targeted at different age groups. See more here www.nationwideeducation.co.uk.
  • Monthly competitions, including the chance to win private red carpet cinema screenings for a customer and 100 of their friends.

Paul Wootton, added: “This is the first time Nationwide has offered a current account specifically for young people. We recognise their banking needs are different and that’s why we’ve designed FlexOne with this in mind. We believe we’ve created not just a strong product, but something that will be relevant to the lifestyles of young people through a range of benefits designed to help them make the most of their money in a safe and secure way. This includes access to a competitive FlexOne Regular Saver at 3.50% gross p.a./AER* and a dedicated Twitter handle – so they can get the support they want, the way they want it.

“FlexOne will help us better serve the needs of our customers, supporting them through their different stages in life. Young people now have an exciting new mutual offering which will provide them with a real alternative to the banks.”

Notes to editors:

* AER stands for Annual Equivalent Rate and illustrates what the interest rate would be if interest were paid and compounded once each year. The gross rate of interest is the interest rate payable before any income tax is deducted (if customers do pay tax).

¹ Customers aged 11 to 17 years old can apply for the account, but the account can be held up until the age of 23.

² Based on customer research.

³ Based on Vue cinema prices in August 2014. Parent and child tickets £17.15 (adult ticket £9.70, child ticket £7.45) x 52 weeks in the year = £891.80 x 25% = £222.95.

FlexOne Current Account

Account Eligibility

  • People aged 11 to 17 can apply for a FlexOne account, but the account can be held up until the age of 23.
  • The account is held in the sole name of the customer.

Account Operation

  • FlexOne can be opened online and in branch. The account can be operated online, in branch and over the telephone.
  • An adult must be present to open the account in branch for children under 16.
  • Applications can be made online for customers aged 14 and over.

Credit Interest

  • 1% AER on credit balances up to £1,000.
  • Credit interest is not payable on balances over £1,000.

Overdrafts

  • Aged 18, subject to status.
  • There are no overdraft charges on the account.

Cards

  • The account comes with a Visa debit card which includes contactless technology (a cash card is also available as an alternative).
  • Customers can switch between cards at any time.

Cash Withdrawals

  • FlexOne customers can withdraw up to £300 a day from a cash machine, as long as they have enough funds in the account or up to £500 over the counter in a branch.

Fees

  • The account has no fees or charges.

FlexOne Regular Saver

Availability

  • In branch and online at nationwide.co.uk.
  • To open a FlexOne Regular Saver, customers must hold a FlexOne current account and be aged 11 to 17 years old. Once opened, the account can be held up to the age of 23.

Account Operation

  • Account can be managed via Nationwide’s Mobile Banking app, Online Bank or via the FlexOne current account (ATM and in branch).
  • Minimum opening and operating balance is £1.
  • Maximum balance increase of £100 per month. Therefore, customers can deposit up to £100 and replace any money withdrawn in the calendar month; for example, if £50 is withdrawn, a total of £150 may be deposited in that month.

Interest

  • Calculated daily and paid annually on 31 December.

Maturity

  • When the account holder reaches 23, the account will be transferred to a Nationwide Flexclusive Saver account (or equivalent instant access account).

About Nationwide Building Society

Nationwide is the world's largest building society as well as the second largest savings and mortgage provider in the UK. It is also a major provider of current accounts, credit cards, ISAs and personal loans. Nationwide has around 15 million customers.

Customers can manage their finances in a branch, via the mobile app, on the telephone, internet and post. The Society has around 17,000 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.

Customers can manage their finances in a branch, via the mobile app, on the telephone, internet and post. The Society has around 17,000 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.

Please note: If you are a customer looking for information on our products and services, please visit the main website.