Nationwide current account pays market-leading 5% interest
Filed under: Current Accounts
Nationwide now has the market-leading current account as it increases the amount of interest it pays to 5%, from 2%.
It will pay this amount on balances up to £2,500 for 12 months at which point the interest rate will revert back to 1%.
This is a brilliant offer as it beats any other current account offers and any one-year savings rates.
There will also be no overdraft charges for the first 12 months, after which point a hefty fee of 50p a day will be applied on arranged overdrafts of more than £10.
To open a FlexDirect current account customers need to deposit at least £1,000 per month and this can be done online or in a branch.
How does it compare?
It's also possible to put more money into some of the other current accounts, such as the Santander 123 account. With this account you'll earn 3% on balances between £3,000 and £20,000 so although the rate isn't as high, you can earn interest on a far greater sum of money.
Is it any good?
The deal beats any other in the current account market and it is also way ahead of any one-year fixed-rate savings bonds.
Therefore it's an impressive deal for those people willing to switch accounts after 12 months.