Nationwide Building Society has launched a new version of its FlexDirect current account with more perks on the table. Customers can earn cashback and interest on their account balances, plus a generous switching bonus, potentially increasing their income by up to £470 in one year.
Account features and eligibility
Customers must pay in at least £1,500 per month to become eligible to access the monthly cashback and interest rewards. After meeting this requirement, customers can qualify for the following cashback offers:
- £5 cashback each month when they spend a minimum of £300 on direct debits (maximum £60 total)
- £5 cashback each month when they spend at least £500 using their debit card (maximum £60 total)
This means customers can earn up to £120 in cashback within the first year.
Interest and switching incentive
Customers can earn 5% AER/gross per annum (fixed) on current account balances up to £1,500 for 12 months, with a maximum of £75. After 12 months, the rate changes to 1% AER (0.99% gross a year) variable.
Eligible customers who switch their main current account to Nationwide using the Current Account Switch Service (CASS) can receive a £175 switching incentive. To qualify, they need to:
- Complete a full switch to a FlexDirect account within 28 days of opening it
- Switch from an account with at least two direct debits
- Pay in at least £1,000
- Make one eligible debit card payment within 31 days of account opening
To qualify, customers cannot have received a Nationwide current account switch incentive since 2021.
Additional perks and expert view
Nationwide customers can qualify for the mutual's Fairer Share payment, which usually awards £100 to those eligible who have at least £100 in savings or owe at least the same amount on a mortgage. When combined, these incentives allow qualifying customers to earn up to £470 in one year.
Fred Powell, head of current accounts at Nationwide, said: “Simple changes like choosing a current account with cashback and interest can make a big difference. Our new FlexDirect current account is designed for everyday spending. You can manage it in a branch or online; it has a great app with budgeting tools and selfie authentication, and we can help customers on the phone or in a branch to switch.”
Rachel Springall, finance expert at Moneyfacts, said: “Nationwide’s FlexDirect account could offer customers up to £470 in value in the first year, including cashback, credit interest, the switching incentive and, assuming the £100 Fairer Share is paid again. The account is highly attractive all-round and rewards customers on their day-to-day spending with cashback. Those who keep a bit of cash in the account will earn an inflation-busting interest rate.”
Current account customers will have access to the mutual's Flex Regular Saver paying 6.50% AER/gross a year (variable). Sharing an example of returns, the building society projected that someone saving the full £2,400 would receive £84.50 interest if they made no withdrawals over the year.
The new deal comes after research showed only 36% of people know you can earn interest on a current account, while just 18% currently earn cashback through their everyday current account. At the same time, many people are uncertain about how some of the most common banking features work. Some 18% are not confident about which cashback rewards are available to them, 16% are not confident in how overdrafts work, and 8% are not confident in how to switch current accounts.
Ms Springall said: "Switching current accounts is quick and easy to do through the Current Account Switch Service, which celebrates its 13th anniversary this month. The service moves over any balance and redirects standing orders and direct debits to the new account."
However, she pointed out: "Customers must not feel rushed to switch. There is no real ‘one-size-fits-all’ current account, as many are tailored for different needs. Those that do offer an array of add-ons must be regularly assessed to ensure they are still offering value for money, otherwise consumers will waste their cash on the packaged account fee."
