Nationwide Building Society is set to introduce a £50 interest-free buffer in November, aimed at eliminating charges for those who dip into their overdraft by a small amount. This new feature will apply to overdrafts on the society’s main current accounts – FlexPlus, FlexDirect, and the FlexAccount. The exact launch date for this buffer in November will be confirmed closer to the time.
Moreover, Nationwide has recently announced a lucrative offer of £175 for customers who switch to its current account via the Current Account Switch Service (CASS), starting from Wednesday. This offer is subject to terms and conditions and is applicable to all three account types – FlexDirect, FlexPlus, and FlexAccount.
The FlexDirect account provides a competitive 5% credit interest on balances up to £1,500 for the first 12 months and previously offered an interest-free overdraft during the same period. With the new changes, customers opening a FlexDirect account will continue to receive the 5% interest rate and a bonus of 1% cashback for the first 12 months on debit card purchases, up to £5 per month and subject to terms.
Existing customers benefiting from the interest-free overdraft offer will keep this benefit until the end of their 12-month period. Starting November, eligible FlexDirect customers, along with FlexPlus and FlexAccount holders, will also receive the £50 interest-free buffer.
The FlexPlus account, known for its benefits such as insurance and breakdown cover, currently charges a monthly fee of £13, which is set to increase to £18 per month from December. On the other hand, there are no account fees associated with the FlexDirect or FlexAccount current accounts.
Rachel Springall, a finance expert at Moneyfactscompare.co.uk, highlighted that the £175 switching incentive puts Nationwide on par with First Direct in the market. She emphasised the value of the 1% cashback feature on the FlexDirect account without incurring any account management fees, making it an attractive option for customers.
Springall also pointed out TSB’s Spend & Save Plus Account, which offers cashback at a £3 fee, and the Chase Current Account, which provides higher cashback rates for new customers. As the festive season approaches, the new £50 interest-free buffer from Nationwide could prove beneficial for customers who may overspend by a small margin.
In conclusion, Springall recommended that current account holders assess the benefits they utilise against any associated charges to ensure they are maximising the value of their account. With Nationwide’s upcoming enhancements and attractive offers, customers have a range of options to consider for their banking needs.