10 August 2016
- Up to £3,000 interest-free overdraft with no fees and 1% credit interest
- Exclusive access to FlexGraduate – also offering interest-free overdraft with no fees
- Benefits include access to shopping discounts and chance to win £15,000 to share
Nationwide will, on 11 August 2016, launch its first ever student current account, becoming the first building society in the UK to offer an account for those going to university.
FlexStudent1 offers a range of benefits, including an interest-free and fee-free overdraft of up to £3,000, credit interest of 1% gross p.a/AER* variable on credit balances up to £1,000 and exclusive access to FlexGraduate2 – a post university current account offering an interest-free overdraft with no fees.
The launch of this account, which is available to anyone aged 18 and above on a full time UCAS university course, means Nationwide can offer a current account for all stages of life3. Students now have access to the world’s largest building society, which is owned by its members and run for their benefit.
Dan King, Nationwide’s Head of FlexStudent, said: “Before we started developing FlexStudent, we asked students and graduates alike what was important to them. Naturally they wanted a straightforward, simple, easy to understand current account, but also one that offered a fee-free overdraft that they could control. FlexStudent has been designed with this in mind.”
- Access to up to £3,000 interest-free, fee-free, flexible overdraft throughout a student’s studies (subject to status), where they can set borrowing limits - putting them in control of their finances.
- Credit interest of 1% gross p.a/AER* variable on credit balances up to £1,000.
- Exclusive access to the new FlexGraduate current account, with an interest-free, fee-free overdraft designed to help students find their feet after university, allowing them time to pay off their overdraft once their course has finished.
- Chance to win one of five prizes of £15,000 to share with their parents4.
- Access to a range of cash back offers on purchases across many of the UK’s favourite retailers through The Simply Rewards website5.
- Compatible with contactless technology, smartphone and Paym payments, enabling students to pay for items in a fast, easy and safe way to fit their needs.
- Online Banking, Mobile Banking, Text Alerts and Impulse Saver will give students the flexibility to easily manage money at any time on the go.
- A range of interactive educational support and tools to help students feel confident when managing their finances and make informed decisions. Resources include budgeting apps, money saving vouchers, money guides, easy-to-understand glossaries of financial terms and much more (www.yourstudentmoney.co.uk).
Dan King, Nationwide’s Head of FlexStudent, said: “Students now have an exciting new account that we believe hits all the right notes relevant to their time at university. The account is loaded with benefits, including a flexible interest-free and fee-free overdraft that puts the student in control. It also gives flexibility to set an overdraft limit and offers access to our new FlexGraduate current account when they leave university.
“Beyond this, the chance to win one of five £15,000 prizes to share with their parents to help with things like accommodation costs and mortgage payments, gives them one less thing to worry about. FlexStudent completes a range of current accounts that enables Nationwide to grow with the needs of its members throughout their lives.”
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).
1FlexStudent Current Account
- The FlexStudent account is only available to individuals in the UK aged 18 or over who are accepted for a full-time UCAS registered course of two or more years’ duration.
- Customers can only have one FlexStudent account open at any one time and it can only be held in the sole name of the customer.
- The FlexStudent account can be opened from two months before to two months after a course start date.
Funding the Account
- Customers must pay in at least £1,500 per year of study across two or more transactions and maintain a good credit record to remain eligible for the key account features.
- FlexStudent can be opened and operated online, over the phone and in branch.
- 1% gross p.a. / AER variable on credit balances up to £1,000.
- Credit interest is not payable on balances over £1,000.
- Aged 18, subject to status.
- There are no overdraft charges for any arranged or unarranged overdraft. The account is designed not to enter into an unauthorised overdraft position.
- Customers can ask Nationwide for an arranged overdraft or ask to increase their arranged overdraft limit online through the Internet Bank, by calling Nationwide or in branch.
- The overdraft is available as soon as the account is open.
- The maximum overdraft limit depends on the customer’s year of study:
|Year of Study
||Maximum available overdraft limit
- The account comes with a Visa debit card which includes contactless technology.
- FlexStudent customers can withdraw up to £500 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.
2FlexGraduate current account
- FlexGraduate is only available to FlexStudent customers.
- Students don’t need to do anything. Nationwide will write to customers on FlexStudent at least two months before we move their account to a FlexGraduate account, with full information about the account and its terms and conditions.
- FlexGraduate customers will keep the same account number, sort code and PIN and will receive a new FlexGraduate debit card.
- If customers don’t want to be moved onto FlexGraduate, they just need to contact us. FlexStudent customers are eligible for our other products, as they will be over the age of 18.
- Any other products will be subject to credit checks and the terms and conditions of the specific products.
- FlexGraduate has a maximum duration of three years for students on courses of three years or more. For courses of two years, students have a maximum duration of 2 years.
- The maximum available limits will decrease in manageable increments. For example, for a three year course the overdraft will be reduced to:
- £2,500 by the end of year one after graduation
- £1,750 by the end of year two after graduation
- £1,000 by the end of year three after graduation
- For a two year course the overdraft will be reduced to:
- £1,500 by the end of year one after graduation
- £1,000 by the end of year two after graduation
3 See details of Nationwide’s full range of current accounts here. Many of which offer an initial fee-free overdraft.
4 Prize Draw Terms and Conditions
- The prize draw will close on 30th November 2016 and the draw will take place on 10th January 2017.
- The prize draw is only open to FlexStudent current account holders whose accounts are open on the date of the draw.
- The prize draw is free to enter and no purchase is necessary.
- If you do not want to be entered into the draw, please tell us and your details will be removed from it.
- 5 winners will be drawn at random from all entries received by the closing date.
- The prize is £15,000 and the winners will be asked to nominate the person(s) they wish to share 50% of the prize with, which should be their parent(s) or legal guardian(s). The winners can nominate more than one person who will share that part of the prize.
- The winners will be notified by email no later than 13th January 2017. If a winner does not respond to the promotor within 30 days of being notified by the promotor, then the winner’s prize will be forfeited and the promotor will be entitled to select another winner in accordance with the process described above.
- The prize is non-transferable and no alternative is available.
- The decision of the promotor regarding any aspect of the prize draw is final and binding and no correspondence will be entered into about it.
- Details of the winners (name and regional area only) will be available on 28th February 2017 by contacting firstname.lastname@example.org.
- The winners may be required to participate in publicity related to the prize draw which may include the publication of their name, regional area and photograph in any media.
- Participants are deemed to have accepted and agreed to be bound by these terms and conditions upon entry. The promotor reserves the right to refuse entry, or refuse to award the prize to anyone in breach of these terms and conditions.
- The promotor is Nationwide Building Society whose registered office is at Nationwide House, Pipers Way, Swindon, SN38 1NW.
5 Simply Rewards
- Students are able to use Simply Rewards. All they need to do is register their card at www.nationwide.co.uk/simplyrewards.
- They will benefit from cashback on well-known brands when they pay with their Nationwide VISA debit card.
- There are no points to collect or vouchers to print off.
- They just need to shop as usual and so long as they’ve logged into Simply Rewards, seen the offer, and the purchase meets the criteria, the cashback will automatically be refunded to their account within 5 working days.