Nationwide FlexAccount launches free travel insurance
Nationwide is writing to customers, to offer them free travel insurance worth almost £80 for joint cover, if they use its award winning FlexAccount as their main current account.
Nationwide's FlexAccount now offers its customers an exclusive and unique package of benefits with no monthly fee, including:
Free European multi-trip travel insurance worth up to £80 per annum
Access to the lowest personal loan rate in the market at 7.7% APR typical
Access to exclusive mortgage products including Protector Mortgage which offers Mortgage Payment
Protection Insurance at no extra charge, free standard legal and valuation fees, borrowing of up to 90% loan to value and the Flexible Mortgage
Among the lowest charges in the market for foreign currency transactions
The changes are designed to reward and provide outstanding value to customers who use Nationwide's FlexAccount as their main current account for their everyday banking. The Society is re-distributing value in a fairer way to ensure that those who have the strongest relationships with the Society, receive the most value.
From 1 November 2010, the Society will be making some additional changes to its current account including the introduction of a low charge for transactions in currencies other than sterling. This replaces the 1% third party foreign currency charge for point of sale transactions made outside of the Visa European region. Nationwide's FlexAccount remains the cheapest mass market current account to use abroad. The Society's new commission charge of 2% and £1 cash withdrawal fee are lower than any of those charged by other standard or free current accounts in the market. Unlike several other card providers, Nationwide does not also charge a fee when a customer makes a purchase abroad (see table on industry charges below). Up until 1 November 2010, many customers will benefit from both free travel insurance and commission-free card use abroad.
Nationwide's credit card continues to offer free use abroad within the VISA European region and a 1% charge worldwide.
When spending £1,000 abroad, Nationwide customers will be charged at least £15 less than those using a card from seven other providers.
Nationwide has also reviewed a number of other charges on its account in order to give customers more control and make them easier to understand. These include:
The reduction of the unpaid item charge by £15 to £15
The removal of the £21.50 cheque guarantee misuse charge
The ability to review and switch off the reserve limit
A maximum monthly overdraft charges cap of £95
A paid item charge of £15
Chris Rhodes, executive director of marketing at Nationwide said: "Our new package of benefits offers greater value to more of our current account customers than before. The average customer saving with free card use abroad was about £12 a year. We're now able to offer those who use us for their day to day banking a benefit of much greater value and one that no other bank account offers - free travel insurance worth up to £80.
"Our current account now works in a way which ensures that those members who have the deepest relationship with Nationwide receive the most benefit. Previously, only a third of our current account customers used their card abroad, and many used it only for that, holding their main current account with another provider, bringing little or no benefit to the Society and its other members.
"Now, customers who use Nationwide's FlexAccount as their main current account can also access other great offers such as MPPI at no extra charge and 90% loan to value deals on some mortgage products, the UK's lowest personal loan rate of 7.7% APR typical and access to our best savings rates. What's more, we continue to provide the cheapest mass market debit card for use abroad."