Nationwide is offering a £175 incentive to those who switch their current account, as the competition among high street banks to attract customers intensifies. This is one of several benefits including a £50 buffer that allows customers to go into overdraft without incurring charges.
Customers who opt for the FlexDirect account, which offers 5 percent AER interest, will also receive 1 percent cashback on debit card spending. This latest initiative from Britain's largest building society aims to leverage its status as a mutual organisation run for its customers, unlike banks which serve shareholder interests.
Previously, it launched a £100 Fairer Share giveaway for qualifying current account holders with either £100 in a Nationwide Savings account or £100 remaining on a mortgage. The last time Nationwide offered a £175 switching bonus, it attracted a record number of new customers and sparked a race among competitors to offer similar incentives.
Tom Riley, Director of Retail at Nationwide, said: "We want to give people every reason to join Nationwide. Our new incentives are the latest demonstration of how we are making banking more rewarding for customers. We believe this shows the difference of being part of a modern mutual, which reinvests it profits for the benefit of members and customers, not shareholders."
How to qualify for the £175 perk
Customers are required to complete a full switch using the Current Account Switch Service. As part of the switch, at least two active Direct Debits must be transferred to the new account. Additionally, customers must deposit £1,000 and make one debit card payment within 31 days.
To open the account, it must be done via Nationwide's website, Internet Bank or Mobile Banking App. The switch must be requested during the application process. Existing customers also have the option to switch a current account they hold with another provider to an existing account they hold with Nationwide via the Internet Bank. This switch must be completed within 28 days of the request.
Customers can choose to switch to one of the Society's three main current accounts:
- FlexPlus: A top-tier packaged account offering benefits such as worldwide family travel insurance, mobile phone insurance, UK and European breakdown cover, and commission-free usage abroad for a monthly fee of £13.
- FlexDirect: An online account that pays 5% AER credit interest and offers 1% cashback on debit card spend.
- FlexAccount: A standard bank account where customers can bank online and in branch at no cost.
In terms of cashback, customers who open a FlexDirect account and haven't previously benefitted from a FlexDirect incentive will also receive 1 percent cashback (capped at £5 per month) for the first 12 months on debit card spend. This is in addition to receiving a market-leading 5 per cent AER credit interest on balances up to £1,500 for the first 12 months.
Overdrafts
Nationwide is set to introduce a £50 interest-free buffer in November, aimed at assisting new and existing customers who occasionally find themselves in their overdraft. This buffer will be applicable to all three of the Society's main current accounts (FlexPlus, FlexDirect and FlexAccount), reducing the representative APR to 38.2 per cent.
The introductory overdraft offer on the FlexDirect account will be discontinued for new account openings and replaced with cashback. However, there will be no changes for existing FlexDirect customers who are already benefiting from an existing offer.
