Nationwide increases FlexDirect interest rate to market-leading 5%

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 £1,000. 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:

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
 
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."