Nationwide FlexDirect VS TSB Plus
I knew I was coming down with something… well, it hammered down on me overnight. I felt unwell yesterday, but today wins the pity prize.
Too bad for me, I bunked off so much that the house has fallen to rack and ruin (love saying that, don’t really love seeing it). I hate cleaning on the best of days, far less a day like today. So I’ve got to drag myself up and into action, but before then I’m going to drink the last cuppa I can before Lord Balders returns from work with a jug of milk, and motivate myself by thinking about what’s gone right in the last week or two.
I opened a new Nationwide FlexDirect account. It’s been a year since I closed my last one, and now I can get 5% gross interest on up to £2500 – hooray for money babies!
I’ve been filling up our TSB Plus accounts and linked 5% regular savers for some time now, and I do want to open a joint TSB Plus account to earn another 5% on up to £2000*, but… I don’t actually have a spare £2000 knocking about right now. All in good time!
Nationwide FlexDirect vs TSB Plus
The advantage of TSB’s Plus accounts over Nationwide’s FlexDirect is that the FlexDirect interest rate reverts to 1% after one year. Bummer, I know.
I’d recommend them both, but not having to worry about your rate dropping after a year is a major boon.
Lord Balders and I used these accounts as mainstays of our savings circle when we first started out, and I just loved them. But then, after a year, I switched mine to the Co-Op to get a £100 incentive. I wanted Lord Balders to do the same, but he thought it would be better to hold on to it – keep a finger in every pie, so to speak, to increase our options when mortgage application time came around.
(As for Co-Op, it was an ok account, but there was nothing to keep me there, the local branch was dire, and the mobile app was dreadful as well.)
Guess what – he was so right. We (I) shopped around furiously for the best mortgage rate for us, and landed on a 3 year “Flexclusive” tracker with Nationwide – a rate of 1.39% + base rate, which means that we pay 1.89%, and will do until the base rate rises or the intro period ends. I’m pretty darned happy with that – our mortgage is pretty low, and would have been lower if we’d gone for a longer term instead of only 10 years.
We would probably have gone with Nationwide for the mortgage anyway based on the other rates available, but keeping the FlexDirect account live meant that we got the best possible deal.
|A family’s moved in… does this makes me a landlord?|
So now, his account doesn’t pay much in interest, but we’ve got around that by taking out the 5% linked regular saver and topping it up by £500 each month. I probably should’ve waited a bit longer before opening my new FlexDirect account and switching to it, but we’re hoping to get our hands on Nationwide’s £100 refer a friend bonus… and I’m very impatient.
Nationwide wins… but we still keep both!
I’m off to clean this house now – talking about interest rates has put me in a more ‘homeownery’, less ‘woe-is-me’ frame of mind. Next, I think I’m going to try to take some pics of the decorating progress – when you feel stuck in a rut, it’s always good to look back at where you started, to see how far you’ve come.
*update 2017 – TSB Plus accounts now pay 3% interest on the first £1500.