As a household name on the high street, Nationwide draws in thousands of savers each year due to its many savings options. One example is their FlexDirect account offering Britons five percent – a market-leading rate.
New applications have been available from June 21 and the rate applies on balances up to £1,500 for the first 12 months.
Members can only benefit from the introductory credit interest rate and interest-free overdraft offer once.
This means that anyone who has previously held a FlexDirect account will not be eligible for the new rate.
However, if applicants have previously held a sole account only, they will be eligible for the introductory rate on a joint account and vice versa.
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The building society has increased the in-credit interest from two percent to five percent AER (4.89 percent gross) for new account customers, but the rate is only available on up to £1,500 for the first 12 months.
After 12 months, the account pays 0.25 percent AER (0.24 percent gross) variable.
It can be opened online or in branch and customers will need to pay in £1,000 per month which doesn’t include transfers from other Nationwide accounts or Visa credits.
Those people who switch can also benefit from a switching incentive and gain some extra cash.
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With interest rates being at 1.25 percent and inflation sitting at nine percent, any extra cash could be vital to put towards household bills as the cost of living crisis worsens.
Savers who are switching their current account will also be able to benefit from Nationwide’s switching incentive.
It is offering £125 to existing members who make the switch, and £100 to brand new customers.
To qualify, switches must be made from another provider using the Current Account Switch Service (Cass) and at least two active direct debits must be transferred as part of the move to the new account.
Debbie Crosbie, chief executive at Nationwide Building Society, said: “This market-leading rate will help new and existing members make the most of their money, which is particularly important right now.
“The FlexDirect current account also has an introductory interest-free overdraft to give some peace of mind to those struggling financially and freeing them to focus on repaying other debts.”
Nationwide said by combining the £125 switching incentive with £75 interest people could potentially receive from the five percent interest rate, people could benefit from a £200 boost over the course of a year if they have at least £1,500 in their account over the next 12 months.
The interest-free overdraft for the first 12 months means eligible applicants can switch their overdraft from their existing current account provider or another Nationwide account.
After the initial 12 months, the overdraft interest rate is 39.9 percent and the overdraft that someone is offered in the first place will depend on individual circumstances.
On June 16, the building society also launched two new accounts.
The Start to Save Issue 2 was introduced which is a regular savings account. It offers savers a chance to win £250 in up to three prize draws. Terms and conditions can be found on their website.
Additionally, the Member Online Bond was introduced. This is a three-year fixed rate bond, just for Nationwide members. Members either have a current account, mortgage or savings account with them.
On July 1, Nationwide will be increasing the interest rates on some of their savings accounts. People can read more about which accounts on Nationwide’s website.
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