Nationwide has boosted the perks of its fee-free FlexDirect current account, meaning new customers could get up to £370 in free cash in their first year.
The building society has upped its cashback deal, with customers now able to get up to £120 in free cash from spending in their first year, double its previous offering of just £60.
Spending is rewarded through £5 a month cashback when you spend at least £500 on your debit card, up to a maximum of £60 a year.
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An additional £5 a month cashback is available when you spend at least £300 through direct debits on anything from water bills to streaming subscriptions, up to a maximum of £60 a year.
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In addition to its boosted cashback offer, Nationwide’s FlexDirect account also provides 5% interest on current account balances up to £1,500 in the first 12 months, giving customers up to £75 in interest. This interest rate drops to 1% after your first 12 months.
The FlexDirect current account is fee-free, meaning none of the free cash you earn over your first year with the account will be eaten away by monthly account costs.
Since 2023, Nationwide has also distributed an annual 'Fairer Share' payment of £100 to each individual with a qualifying account, and in previous years having an active FlexDirect account has made you eligible for the payment.
That means if the building society decides to make the payment again in 2027, you may receive an additional £100 bonus.
Fred Powell, head of current account at Nationwide, said: "With our new free FlexDirect account, customers can still earn interest on money in their account, get cashback on everyday spending and benefit from a £175 switching offer.
“It means new customers could get as much as £295 with Nationwide in their first 12 months and that’s without adding the 5% on current account balances [and] access to savings accounts,” he added.
How to get £370 of free cash by switching to Nationwide’s FlexDirect
FlexDirect’s perks mean some new customers could manage to get £370 in free cash in their first 12 months – as long as they keep enough money in the account.
Firstly, new Nationwide customers are eligible for a £175 switching bonus when changing their main bank account to Nationwide through the Current Account Switching Service (CASS).
To qualify for the switch incentive, customers need to complete a full switch using CASS within 28 days of opening the new FlexDirect account, switch from an account with at least two direct debits, and pay in at least £1,000.
Then, once you have an active FlexDirect account, you can get £5 a month in cashback from everyday spending of at least £500, and another £5 a month in cashback from direct debits of at least £300
Together, this cashback will come to £120 over the full 12 months.
Finally, you can get another £75 from the 5% interest on your current account balance over your first 12 months.
To get the maximum amount, you will need to have a current account balance of at least £1,500 and make sure it does not drop below this all year to get the full £75 interest.
Put together, these bonuses mean new customers switching to Nationwide can get a maximum of £370 in their first year with the FlexDirect account – or more if Fairer Share is repeated this year.
Rachel Springall, finance expert at Moneyfacts, said: “Households are no doubt looking for simple ways to make their money go further, so it is incredibly important to take time out to review all the financial products they have, including current accounts, which are often overlooked.
“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.”
Are you eligible for a FlexDirect account?
To be eligible for a FlexDirect account, you need to be aged 18 or over and be a UK resident.
To keep the account active, you will need to pay in at least £1,500 every month. This would most likely come from your monthly salary, but could also come from other sources like savings.
You must also agree that your FlexDirect account is for personal use only, and you must hold no more than three existing sole or joint Nationwide current accounts.
