21 Jun 2022

Nationwide increases interest rate on its FlexDirect current account to a market-leading five per cent

  • Introductory rate available for new applications on balances up to £1,500 for first 12 months
  • Members switching their current account receive £125 while new customers receive £100
  • Switchers could benefit from up to £200 within first year through interest and switching incentive
  • Interest free overdraft for first 12 months helping members reduce existing debt and outgoings

Nationwide is tomorrow (Tuesday 21 June) increasing the introductory credit interest rate on its FlexDirect current account to a market-leading1 5% AER – benefitting members by up to £200 within a year if they switch to the building society.

Debbie Crosbie, Chief Executive at Nationwide Building Society, said: “Being able to offer highly competitive rates is one of the biggest benefits of mutuality. This market leading rate will help new and existing members make the most of their money, which is particularly important right now. The FlexDirect current account also has an introductory interest-free overdraft to give some peace of mind to those struggling financially and freeing them to focus on repaying other debts.”

Key Product Information

The 5% AER rate (4.89 gross) will be available for new applications2 opened from 21 June on balances up to £1,500 for the first 12 months3. Those switching their current account could also benefit from the Society’s switching incentive, which pays £125 to existing members who switch their current account to the Society and £100 to new customers4. 

It is hoped that the additional interest and switching incentive helps members get more value for their money at a time when they need it most - those with at least £1,500 in their account each month could benefit from a £200 boost across the 12-month period (£75 interest plus £125 switching incentive).

FlexDirect also offers an interest-free overdraft for the first 12 months, meaning eligible applicants2 can switch their overdraft from their existing current account provider or another Nationwide account – a real benefit for those looking to reduce their debt and outgoings with the cost-of-living pressures.

This follows on from the launch last week of two highly competitive products designed to appeal to new and existing savers - Member Online Bond and a new Start to Save account.

In the last five years, Nationwide has been number one for current account switching, gaining nearly twice as many its nearest competitor. In the last financial year alone, a record 604,000 people switched to the Society with many looking for a credible and attractive alternative to the big banks.

- Ends -

Notes to editors

1 Source: High Interest Current Accounts | moneyfacts.co.uk 

2 Members can only benefit from the introductory credit interest rate and interest free overdraft offer once, meaning anyone who has previously held a FlexDirect account will not be eligible for the new rate. However, if applicants have previously held a sole account only, they would be eligible for the introductory rate on a joint account and vice versa. 

3 After 12 months, the account pays 0.25% AER (0.24% gross) variable. The self-service account operated online and can be opened online or in branch. Members will need to pay in £1,000 per month, not counting transfers from other Nationwide accounts or Visa credits. 

4 To qualify, switches must be made from another provider using the Current Account Switch Service and a minimum of two active Direct Debits must be transferred as part of the switch and set up on the new account.