Teens of thousands flock to Nationwide

28 October 2015

FlexOne takes a fifth of all youth current accounts a year after launching

FlexOne - the UK’s top rated youth current account1 - celebrates its first anniversary with one in five young people choosing the account which gives them responsibility over their money.

Since launching on 29 October 2014, FlexOne has proved extremely popular, with customers aged 11 to 17 opening in excess of 150,000 accounts. This equates to one in five youth accounts opened in the UK in its first year alone. This means that tens of thousands of young people have been given greater control over their money, laying the foundations for being able to make good financial decisions into adulthood.

The FlexOne current account is easy-to-use and offers young people control over their finances. The account includes a range of competitive features, including access to an exclusive highly competitive Regular Saver paying 3.50% gross p.a./AER. It is completely fee-free, has dedicated financial support via a 24/7 Twitter service and includes 25 per cent discount off Vue cinema tickets.

The majority of FlexOne customers opt for face-to-face contact and support while making an application, rather than choosing to apply independently online.

Figures also show that using a debit card at point of sale is the favourite way to pay for young people, while around a quarter use ATMs to withdraw cash. Customer data also shows that young customers become much more digitally savvy from the age of 16 upwards, relying on Mobile and Online banking, possibly as a result of them becoming more financially self-assured over time.

Phil Smith, Nationwide’s head of current accounts, said: “Since opening its doors for business, FlexOne has not only proved extremely popular with young customers, but it has been a great way for them to learn about money and gain practical experience of dealing with their own finances. Our data shows this age group is financially responsible and drawn to a more traditional approach when managing money.

“We’ve also been extremely impressed with the drive many young customers have shown to make regular saving commitments. We are proud that we can offer these customers a market-leading current account that helps them feel confident when managing their money. FlexOne provides a stepping stone into the world of finance, helping to educate young customers about money and get to grips with finances from an early age.”

Notes to Editors

All figures based on Nationwide’s FlexOne customer data.

1 Which? rated children’s accounts (1 April 2015)

2 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).

FlexOne

See more information about our youth current account, FlexOne

Vue Cinema

  • 25% off at Vue Cinemas for a customer and one other for 12 months, for any film, anytime, anywhere, including 3D films.

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).

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

See more information about our 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

Nationwide is the world's largest building society as well as one of the largest savings providers 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 customers.

Customers can manage their finances in a branch, via the mobile app, on the telephone, internet and post. The Society has around 18,000 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.