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01 March 2013
From 1 March 2013, Nationwide's FlexDirect current account will pay a market-leading rate for credit interest of 5% AER fixed for the first year on credit balances up to £2,500. After the first year, the account pays 1% gross p.a./AER (variable) on credit balances up to £2,500.
Customers requiring an overdraft will benefit from the introductory offer of no arranged overdraft charges for 12-months, after which a reduced daily usage charge of 50p will apply on arranged overdrafts of £10 or more.
Existing FlexDirect customers will see the credit interest on their account increased to 5% AER for an additional 12-months, not just for the remainder of their initial introductory term. These customers will also benefit from the introductory overdraft offer of no arranged overdraft usage charges for the 12 month period.
FlexDirect requires minimum monthly funding of at least £1,0001. The self-service account can be opened in branch, online or by telephone, but customers will be required to use Nationwide's online, mobile and telephone banks to carry out day-to-day transactions on their account. FlexDirect customers also have access to:
Switching current accounts is easier than people think. Nationwide has a dedicated team which switches customer's direct debits and standing orders for them. Customers are kept informed of progress via text updates.
Phil Smith, Nationwide's head of current accounts, said: "Nationwide continues to see record numbers of customers switching to the Society as people continue to look for a credible alternative to the big banks.
"FlexDirect offers a market-leading credit interest rate of 5% AER, a rate that is likely to hold wide appeal in a market where many current accounts pay little or no interest.
"As a demonstration that Nationwide is "On Your Side", existing FlexDirect customers will not miss out. The market-leading credit interest rate and introductory overdraft offer will be reset on their accounts for an additional 12-months."
Source: Competitor websites and Nationwide – 22.2.2013
1Minimum monthly funding of £1,000 excludes internal transfers.
Exclusive deals available to reward FlexDirect customers, including:
Customers also have access to Simply Rewards – A website exclusively for Nationwide debit card and credit card customers, offering discounts on top brands. Further details can be found at http://www.nationwide.co.uk/current_account/latest_deals/simply-rewards.htm
AER Stands for Annual Equivalent Rate and illustrates what the interest rate would be if interest was paid and compounded once each year.The gross rate of interest is the interest rate payable before any income tax is deducted (if you do pay tax).The net rate of interest is the interest payable after any income tax is deducted (if you do pay tax).
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.