Act now to get top-pay Nationwide 5% regular savings account before it closes on FridayDanny Smith January 24, 2021 0 COMMENTS
SAVERS looking to tuck some spare cash away each month should consider opening Nationwide’s top-paying regular savings account NOW before it’s pulled on Friday.
The building society is axing its Flex Regular Online Saver account for new customers from April 6 – although existing users will be able to keep the account until it matures.
It’s a best buy for those looking to save their money on a regular basis paying a whopping 5 per cent interest for a year.
You can save between £1 and £250 a month with the account and once the year is up your cash is transferred to an instant access savings account paying 0.6 per cent.
If you saved the maximum £250 every month you’d make just over £81 in interest over 12 months.
Only First Direct and HSBC pay the same 5 per cent rate to their regular savers for a year but these accounts have higher minimum pay in requirements.
BEST BANK ACCOUNTS FOR SAVINGS
AS you can now earn interest tax free on any accounts and not just Isas, some savvy savers have been using current accounts to get a cash boost.
Here are some of the highest-paying current accounts around:
- Nationwide FlexDirect – You’ll get 5 per cent on balances up to £2,500 for the first year you have the account before it drops to 1 per cent. You’ll have to pay in £1,000 a month to qualify for the interest but you won’t have to set-up any direct debits.
- TSB Classic Plus – You’ll get 5 per cent with TSB but only on balances up to £1,500 – and you’ll need to pay in at least £500 a month and register for internet banking. You don’t need to set-up any direct debits.
- Bank of Scotland/Club Lloyds: You’ll get 1.5 per cent on up to £5,000 as long as you pay in at least £1,000 and £1,500 respectively each month. You also need at least two direct debits coming out each month.
With First Direct you can save between £25 and £300 a month, while with HSBC you can save between £25 and £250.
But while this is a regular savings account, if you need the cash earlier, you can withdraw the money penalty free.
The only catch is you must have a Nationwide current account (FlexOne, FlexStudent, FlexGraduate, FlexDirect or FlexPlus, or the FlexAccount and you’ve paid in £750 a month over the past three months or you’ve switched in the past four months) to get the deal.
How do I get the account before Friday?
If you’re already a Nationwide current account customer you can open the account online at Nationwide (branch and telephone opening isn’t available).
You’ve got until 11.59pm on Friday April 5 to do this.
Those who aren’t already Nationwide current account customers first need to open a bank account with the building society.
Current account switching usually takes seven working days but Nationwide says if you open the current account in branch before the bank closes on Friday April 5 then you can open the regular saver at the same time in branch too.
Why is the account closing?
Nationwide says it’s closing the account because it’s not meeting its goal of appealing to new savers.
It says the majority (86 per cent) of people using the regular saver already have an average of £20,000 saved with the building society.
Nationwide is launching a Loyalty Isa in its place paying 1.4 per cent. This is a competitive rate but it’s not the best on the market, with the top paying easy-access Cash Isa paying 1.5 per cent.