Nationwide Building Society offering 5% interest rate

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The account in question is Nationwide’s FlexDirect which pays an interest rate of five percent AER or 4.89 percent gross. Thanks to the building society’s current account, in-credit interest is fixed for 12 months on balances up to £1,500 however customers will need to pay in at least £1,000 a month. After the first 12 months, Nationwide Building Society’s products revert to a variable rate of 0.25 percent AER or 0.24 percent gross a year.

It should be noted that those who have had a FlexDirect current account before will not receive the 12 month credit interest offer.

Customers who have previously had the account will also not get the interest-free overdraft offer again.

On top of the five percent interest rate and cashback deal, the FlexDirect has an interest-free arranged overdraft for 12 months attached.

Despite this, customers will be able to receive the offer on a new joint account but only if they have not shared a FlexDirect account with that person before.

One of the most enticing aspects of the current account is Nationwide’s cashback deal on grocery shopping.

It can be applied when shopping at supermarkets, such as Morrisons, Tesco, Sainsbury’s or Aldi.

However, not every shopping expense will qualify someone for the building society’s deal. Members will not earn cashback shopping at the following places, according to Nationwide:

  • Cashback petrol stations, including fuel and kiosks
  • Service station stores
  • Supermarket concessions, for example at an Argos inside a Sainsbury’s
  • Telecoms and financial services providers (including those owned by supermarkets)
  • In-store services at supermarkets, for example at supermarket cafés or opticians
  • Specialist independent stores, for example bakeries and butchers
  • Wholesale stores, or
  • Delivery companies, like Deliveroo.

Through the deal, current account members receive five percent cashback on supermarket spend as of February 9, 2023.

Account holders can get up to £10 per month returned just for shopping as they do normally on essential food items.

This offering applies to online and in-store spending when using a Nationwide debit card at both large and small supermarkets and lasts until April 30.

As of today, the cashback is capped at £10 per calendar month, for each card, which customers will receive the monthly maximum by spending £200.

READ MORE: Recession fears continue despite UK economy growing

At £10 per month, this means Nationwide Building Society members could get £120 in cashback throughout the year.

Tom Riley, the director of Retail Products at the financial institution, shared why this deal will be so useful for customers at this moment in time.

He explained: “Food costs have risen sharply and many households now think carefully about how and where they shop.

“We’re helping members with £10 a month cashback on supermarket spending – just one of the benefits of having a current account with the world’s biggest building society.”

Outside of the FlexDirect account, other qualifying Nationwide products for this deal include the FlexPlus and FlexAccount accounts.

All participating customers will automatically receive the cashback payment into the account used to make purchases.

Anyone who has provided Nationwide Building Society with their mobile phone number will get a text alert after payments have been made.

As well as this, the building society is providing a cost of living hotline, 0800 030 40 66, to help customers deal with financial issues amid the economic downturn.

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