The revised account comes as households continue to review their finances and look for ways to manage regular spending. According to the Daily Express, research found that only 36% of people know they can earn interest on a current account, while 18% currently receive cashback through their everyday account.
Flexdirect Combines Cashback, Interest and Switching Incentives
The updated FlexDirect account allows eligible customers to earn up to £120 in cashback over 12 months. Customers who pay in at least £1,500 per month can receive £5 cashback each month when they spend a minimum of £300 through direct debits, alongside another £5 each month when they spend at least £500 using their debit card.
The account also continues to offer a 5% AER/gross fixed interest rate on balances up to £1,500 for the first 12 months. The maximum potential interest available from this rate is £75. After the initial period, the account pays 1% AER (0.99% gross a year) variable interest.
Eligible customers who move their main current account to Nationwide through the Current Account Switch Service can also receive a £175 switching incentive. To qualify, customers must complete a full switch to FlexDirect within 28 days of opening the account, move an account with at least two direct debits, pay in at least £1,000 and make one eligible debit card payment within 31 days.
According to Nationwide, customers who meet the criteria could receive up to £370 from the switching incentive, cashback and interest. The figure can rise to £470 when including the potential Fairer Share payment of £100, if it is paid again and eligibility requirements are met.
Banking Experts Highlight Rewards and Customer Considerations
The updated account has drawn attention from financial experts because of the combination of everyday rewards and interest payments. Rachel Springall, finance expert at Moneyfacts, said the account could offer customers up to £470 in first-year value when cashback, interest, the switching incentive and the Fairer Share payment are included.
Springall said customers should review whether an account’s features match their own financial needs rather than switching solely because of additional benefits. She noted that current accounts can have different features and that customers should assess whether they continue to provide value.
Alongside FlexDirect, Nationwide customers can access the Flex Regular Saver, which pays 6.50% AER/gross a year (variable). The building society stated that a customer saving the full £2,400 allowance without withdrawals over the year would receive £84.50 in interest.
According to Nationwide, the organisation was the most-switched-to banking provider in the latest Current Account Switch Service figures, gaining 58,000 net new customers from other banking brands during the previous quarter.
The account is available to UK residents aged 18 or over who meet the application requirements. Customers must pay in at least £1,500 each month, while cashback and switching rewards are subject to eligibility conditions.
The launch follows wider uncertainty among consumers about common banking features. Nationwide reported that some people lack confidence in understanding cashback rewards, overdrafts and the process of switching current accounts. The Current Account Switch Service transfers balances and redirects standing orders and direct debits when customers move to a new provider.
