
From November this year Nationwide Building Society will be charging customers 39.9% EAR – yes that’s right 39.9% EAR for agreed overdrafts on its current accounts.
At the moment Flex Direct Customers pay 50p per day and FlexAccount customers pay an interest rate of 18.9% EAR – below is what the interest rate hike will cost you:
Nationwide FlexAccount
£250 for 3 days – Now £0.36 – from November £0.70
£600 for 4 days – Now £1.15 – from November £2.24
£1200 for 6 days – Now £3.44 – from November £6.72
£2000 for 12 days – Now £11.47 – from November £22.39
Nationwide Flex Direct
£250 for 3 days – Now £1.50 – from November £0.70
£600 for 4 days – Now £2.00 – from November £2.24
£1200 for 6 days – Now £3.00 – from November £6.72
£2000 for 12 days – Now £6.00 – from November £22.39
For frequent users of an overdraft facility it will be much cheaper to borrow by credit card where rates are around half the new overdraft rate which starts in November.
- Moneycomms research reveals that only 26 of the top 50 instant access savings accounts are ‘clean’ and don’t have penalties or restrictions - February 23, 2021
- A Guide to Credit Card Balance Transfers - January 21, 2021
- Where next for NS&I customers? - October 23, 2020
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