Nationwide - new 5% saver rate

[ashtonsgran]

Nationwide have just released a Flexclusive saver, which gives 5% interest for 12 months. You can pay in up to £500 per month, withdrawals are allowed and it's instant access.

It's available to Flex Direct and Flex Plus account holders. Could be useful for some people on here. I've opened mine today.

[Sarah7]

I've opened this too; it's a pity they're replacing the existing Regular Savings account, which had several advantages over the new account despite its lower interest rate, but at least we're being notified a year in advance and they're allowing Regular Savings customers to hold both accounts in the meantime.

[mhoc]

we have been away and so far I've not seen any emails from Nationwide regarding this new account

I opened the loyalty saver a few years back and the interest rate was excellent to start with but then it plummeted so I've been gradually shifting the contents across to a regular saver which at least pays 2% - that was 2.5%The old loyalty saver is now empty

At the moment I have 2 Flexdirects - I am wondering if the system will allow me to open 2 of the new 5% saver rates

[far canel]

if you put £500 in at the start of each month you earn £107 interest in the year.

[Sarah7]

I am wondering if the system will allow me to open 2 of the new 5% saver rates

Sadly, no...

You can only have one Regular Saver or Flexclusive Regular Saver account at any one time, which can be held in sole or joint names.

http://www.nationwide.co.uk/products...s-and-benefits

[oldvicar]

if you put £500 in at the start of each month you earn £107 interest in the year.

I make it £162.50

The way I worked it out is:

Your first £500 will be invested for 12 months.
The next £500 for 11 months, etc., down to
The last investment will be invested for just one month.

(12+11+10+9+8+7+6+5+4+3+2+1) = 78.
Your total invesment (£6000) trickled in over 12 months therefore will earn interest equivalent to £500 invested for 78 months, or:
£500 x (78 / 12 ) x 5% =
£500 x 6.5 x 5% =
£3250 x 5% = £162.5

Given the poor rates elsewhere, its like being given over £100 a year just for being a customer.

The account is also available to those with bog standard (free) Flex accounts, in addition to those mentioned in the first post.

[far canel]

I make it £162.50

The way I worked it out is:

Your first £500 will be invested for 12 months.
The next £500 for 11 months, etc., down to
The last investment will be invested for just one month.

(12+11+10+9+8+7+6+5+4+3+2+1) = 78.
Your total invesment (£6000) trickled in over 12 months therefore will earn interest equivalent to £500 invested for 78 months, or:
£500 x (78 / 12 ) x 5% =
£500 x 6.5 x 5% =
£3250 x 5% = £162.5

Given the poor rates elsewhere, its like being given over £100 a year just for being a customer.

The account is also available to those with bog standard (free) Flex accounts, in addition to those mentioned in the first post.

My calculations were after tax (only 4%) and were put into a spreadsheet to work out the daily interest earned. each £500 earned 5.5p per day (at 4%) approx. £1.70 each month for every £500 if invested at the start of the month.

i.e. (£500 *.04)/365 = .0548 then the same next day with a running total. next month (£1,000 *.04)/365 = .1096 per day added to running total etc, etc.