Nationwide offers ‘whopping’ 5% interest rate account for savers

Martin Lewis advises on savings accounts and premium bonds

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Nationwide Building Society is making the offer through its popular FlexDirect account which offers a range of benefits. This includes the fact the account is fee-free, access to exclusive savings accounts, and the potential for an interest-free arranged overdraft.

However, the most enticing element about the account is the five percent interest rate fixed for 12 months.

It is available on balances up to £1,500, providing the chance to secure a solid return.

Individuals will need to pay in at least £1,000 a month into this account, not counting transfers from other Nationwide accounts or Visa credits.

To apply, Britons must be 18 or over and a UK resident.

They need to agree the account is for personal use only.

They will also need to hold no more than four existing sole or joint Nationwide current accounts. 

The Nationwide website warns: “If you’ve had a FlexDirect account before, you won’t receive the 12 month credit interest offer or the interest-free overdraft offer again. 

“However, you will get the offer on a new joint account, as long as you have not shared a FlexDirect account with that person before.”

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People who make the switch to FlexDirect could also benefit from a switching offer.

Those who are not yet members could get £100 simply for switching to Nationwide.

Those who are already members will benefit from a slightly higher offer of £125.

Nationwide has explained this is part of its efforts to give back to its members.

To secure this offer, all people will need to do is complete a full switch online to a FlexDirect from another building society or bank.

They will need to switch over two direct debits as part of the switch.

The FlexDirect account also has protections under the Financial Services Compensation Scheme (FSCS).

It means savings of up to £85,000 are protected should the worst happen and a provider fails.

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Martin Lewis, the founder of Money Saving Expert, used the website to point Britons towards the building society’s deal.

He said: “The FlexDirect pays a whopping five percent in-credit interest.

“It easily beats accounts if you’ve £1,500 or less to save.

“However, the rate drops sharply after a year, so look elsewhere then as it’s likely it ca be beaten.”

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