Nationwide FlexDirect review: Is it the UK's best current account?
TLDRIn this video, Andy Webb discusses the Nationwide Flex Direct Account, a popular UK current account known for its high interest rates and ethical banking practices. Despite a significant drop in interest rates from 5% to 2% and changes in the switching bonus program, the account remains competitive with benefits such as a 0% overdraft for the first 12 months and no charges for ethical concerns like fossil fuel funding. Webb also shares his personal experience with the account and app, highlighting the need for a card reader for new payee setup, which may be a drawback for some users.
Takeaways
- 🏦 Nationwide Flex Direct Account is considered one of the best current accounts in the UK, with accolades from magazines and consumer polls.
- 💡 The account offers competitive in-account interest rates, despite a decrease from 5% to 2% on the first £1,500-£2,500 of savings, providing a good return compared to other savings accounts.
- 💰 The promotional interest rate is fixed for the first 12 months, offering stability and predictability for savers.
- 🎁 A referral scheme is in place, offering £100 upon switching to the account and being referred by an existing customer, although currently paused due to the pandemic.
- 🚫 The account provides an interest-free overdraft for the first 12 months, which can help users save on borrowing costs and clear existing overdrafts.
- 🌱 Ethical considerations are a strong point for Nationwide, as it ranks highly for ethical banking practices, avoiding funding for fossil fuels and arms manufacturing.
- 📱 The Nationwide mobile app is generally user-friendly but lacks some features, such as setting up new payees without a card reader, which can be inconvenient.
- 🤔 The decision to open or switch to the Nationwide Flex Direct Account may depend on individual circumstances, such as the importance of high interest rates or ethical banking practices.
- 💡 The video suggests considering a portfolio of accounts for different purposes, such as Nationwide for savings and another account for day-to-day spending.
- 📈 The Nationwide Flex Direct Account is recommended for its combination of competitive interest rates, ethical practices, and customer service, despite some limitations in the mobile app experience.
Q & A
What is the main focus of Andy Webb's channel?
-The main focus of Andy Webb's channel is to provide advice on how to make the most from one's money, which includes saving money, making money, and better managing financial resources.
Which current account does Andy Webb consider one of the best in the UK?
-Andy Webb considers the Nationwide Flex Direct account as one of the best current accounts in the UK.
What awards or recognitions has the Nationwide Flex Direct account received according to the video?
-The Nationwide Flex Direct account was awarded the best banking brand by a magazine in 2020, ranked highly in terms of customer service by Saving Expert, and recognized as the most ethical by Ethical Consumer magazine among the big banks.
What is unique about Nationwide being a building society rather than a bank?
-Although Nationwide is a building society and not a bank technically, it offers all the services one would expect from a major current account, including a debit card, numerous branches, online and telephone banking, without any difference in functionality for the customer.
What was the previous interest rate offered by the Nationwide Flex Direct account and how has it changed?
-The Nationwide Flex Direct account previously offered 5% interest on the first £2,500, but due to changes, it now offers 2% interest on the first £1,500.
What is the promotional interest rate for new Nationwide Flex Direct account holders and for how long is it valid?
-New Nationwide Flex Direct account holders are offered a promotional interest rate of 2% for the first 12 months.
What is the switching bonus offered by Nationwide and how does it work?
-The switching bonus offered by Nationwide is £100, which is received when a new customer signs up through a referral from an existing customer and switches from another bank to Nationwide Flex Direct.
How can an individual potentially get more than one promotional interest rate from Nationwide?
-An individual can potentially get more than one promotional interest rate by opening a joint account with a partner, allowing both parties to earn the promotional interest rate on their respective contributions.
What are the ethical considerations mentioned for the Nationwide Flex Direct account?
-The Nationwide Flex Direct account is considered ethical as the funds in the account won't be used for funding activities like fossil fuels or arms manufacturing, which is a positive policy compared to other major banks.
What is Andy Webb's main criticism of the Nationwide app?
-Andy Webb's main criticism of the Nationwide app is the requirement of a card reader to set up a new payee, which he finds inconvenient compared to other banking apps that do not require such a device.
What is Andy Webb's recommendation for individuals with an overdraft?
-Andy Webb recommends that individuals with an overdraft should consider the Nationwide Flex Direct account due to the 0% overdraft offer for the first 12 months, which can help clear the overdraft faster and save money on interest charges.
Outlines
💼 Introduction to Nationwide FlexDirect Account
The speaker, Andy Webb, introduces the Nationwide FlexDirect account as one of the best current accounts in the UK, recommended for its excellent customer service and ethical banking practices. He mentions that the account has been recognized for its high interest rates and has been ranked highly by Ethical Consumer magazine. Despite these accolades, he notes that changes over the past year have affected the account's benefits, and he aims to review these changes and provide his personal insights on whether the account is still worth considering.
💰 In-Account Interest and Promotional Rate Details
The speaker discusses the in-account interest rates of the Nationwide FlexDirect account, highlighting the significant drop from 5% to 2% on the first £1,500 saved. He explains that this drop in interest rate has reduced the annual earnings from £125 to £30. Despite the decrease, the account still offers the highest interest rate available, with Virgin Money's current account being the only close competitor. The speaker also mentions the promotional interest rate, which is fixed for the first 12 months and only available to new account holders, emphasizing the importance of meeting the monthly payment requirement to earn interest.
🎁 Switching Bonus and Overdraft Benefits
The speaker talks about the referral bonus offered by Nationwide, which provides £100 upon switching to the FlexDirect account through an existing customer's referral. He notes that this bonus is currently paused due to the pandemic but could return in the future. He also discusses the account's overdraft facility, which allows new customers to apply for a 0% overdraft for 12 months, helping to clear existing overdrafts faster without incurring high interest charges. This feature is particularly beneficial for those who frequently maintain an overdraft, as it can significantly reduce borrowing costs.
🌐 Ethical Considerations and App Experience
The speaker emphasizes the ethical aspect of the Nationwide FlexDirect account, noting that it is ranked as one of the most ethical current accounts by Ethical Consumer. He mentions that the account's funds are not used to fund fossil fuels or arms manufacturing, which sets it apart from other major banks. However, he expresses frustration with the Nationwide app's requirement of a card reader to set up new payees, a feature he finds outdated and inconvenient compared to other banking apps. Despite this, he suggests that the account could still be part of a diverse portfolio of current accounts, especially for those who value ethical banking practices.
📋 Summary and Final Thoughts on Nationwide FlexDirect
In the conclusion, the speaker summarizes the key points about the Nationwide FlexDirect account, including its benefits for those with overdrafts, its ethical policies, and the comprehensive banking services it offers. He acknowledges the reduced interest rates but still considers the account to be one of the best options available. He also addresses the app's shortcomings and suggests that some users might prefer other banks with more user-friendly apps. He encourages viewers to consider having multiple current accounts to maximize benefits, such as using Nationwide for savings and another account for daily spending.
Mindmap
Keywords
💡Current Accounts
💡Interest Rates
💡Ethical Banking
💡Switching Bonus
💡Overdraft
💡Customer Service
💡Mobile Banking Apps
💡Referral Program
💡Financial Management
💡Banking Brands
💡Account Features
Highlights
Nationwide Flex Direct Account is considered one of the best current accounts in the UK.
Nationwide was awarded the best banking brand in 2020 by Which? Magazine, ranking above First Direct and Starling Money.
Saving Expert on its group rates Nationwide highly in terms of customer service.
Ethical Consumer Magazine ranks Nationwide as the most ethical among the big banks.
The Nationwide Flex Direct Account offers a competitive interest rate, previously leading at 5% on the first £2,500.
The interest rate has dropped to 2% on the first £1,500, still offering one of the highest rates available.
To earn interest, a minimum of £1,000 must be paid into the account each month.
The promotional interest rate is available for the first 12 months after opening the account.
Nationwide is technically a building society, not a bank, but functions similarly with all the services of a current account.
The account offers a 0% overdraft for 12 months for first-time applicants, which can help clear existing overdrafts faster without incurring high interest charges.
The referral scheme allows existing customers to refer new users and earn a £100 bonus upon successful switch.
The account has a strong ethical stance, not using customer funds for activities like fossil fuel funding or arms manufacturing.
Despite the reduction in interest rates, the Nationwide Flex Direct Account remains a top choice for its combination of high interest rates and ethical policies.
The Nationwide app is generally user-friendly, but setting up new payees requires a card reader, which can be inconvenient.
The account is part of a portfolio of accounts recommended for those prioritizing ethics and high interest rates.
The Nationwide Flex Direct Account is particularly beneficial for those looking to clear an overdraft or seeking an ethical place to store their savings.