Nationwide has significantly enhanced its FlexDirect current account, doubling the annual cashback perk to a potential £120 and offering a £175 switching bonus for new customers. The move aims to attract more users to Britain's largest building society, which the company notes is the UK's most switched-to banking brand.
The boosted cashback is available to customers who use the FlexDirect account for everyday spending and bills. Monthly rewards include £5 for spending at least £300 on direct debits, such as utility bills or subscriptions, and another £5 for spending at least £500 on the debit card. This brings the total potential annual cashback to £120, double the previous offering.
New customers opening a FlexDirect account can also benefit from a £175 switching bonus. To qualify for this bonus, applicants must open a FlexDirect account, complete a full switch within 28 days, move at least two direct debits, pay in at least £1,000, and make one eligible debit card payment within 31 days of opening the account. The offer excludes switches from Nationwide and Virgin Money accounts, and customers who have received a Nationwide current account switching incentive since 2021.
When combined, the switching incentive and the debit card cashback mean new customers could earn up to £295 in their first year with the account. The FlexDirect account also offers 5% AER/gross interest on balances up to £1,500 for the first 12 months, potentially adding another £75 to the first-year earnings, bringing the maximum potential value for many new customers to £370.
To be eligible for the FlexDirect account, applicants must be 18 or over, be a UK resident, and pay in at least £1,500 per month. The account is fee-free for everyday use and offers interest paid monthly. After the initial 12 months, the interest rate on balances up to £1,500 drops to a variable 1% AER (0.99% gross). Customers also cannot have held a FlexDirect account within the last three years, with some exceptions.
Experts highlight the attractiveness of current accounts for everyday banking and saving. Rachel Springall of Moneyfacts noted that households are actively seeking ways to make their money go further and that reviewing current accounts, which are often overlooked, is important. She described the FlexDirect account as highly attractive, rewarding customers for day-to-day spending with cashback and offering an inflation-busting interest rate for those who maintain a balance.