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The Ayatollah Buggeri

Change To Nationwide Flexacount T & Cs

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Just had a letter from Nationwide explaining that they are scrapping their 'no transaction fee abroad' deal on Flexaccount Visa debit cards, and introducing charges for 'electronic payments in the UK and abroad' (which I presume means for standing orders and direct debits). In exchange, they're giving account holders free European travel insurance if they credit more than £750 a month to their account, and reducing the fee for bounced payments from £30 to £15.

Presumably this is designed to get rid of customers like me, who only use their Flexaccount for the Visa card while abroad and put just enough money in it as needed. However, reducing the overdraft charges while charging people in credit for DDs and SOs is an obscene moral hazard - yet another example of the responsible being forced to subsidise the feckless.

Nationwide will achieve their objective - I will be closing my Flexaccount shortly before the new charges are introduced on 1 November. I will also be closing the ISA with £20k in it and taking that elsewhere out of protest, and if NW ask, I'll tell them why. Hopefully enough savers who also have Flexaccounts will do the same and Nationwide will learn a lesson about the law of unintended consequences.

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Just had a letter from Nationwide explaining that they are scrapping their 'no transaction fee abroad' deal on Flexaccount Visa debit cards, and introducing charges for 'electronic payments in the UK and abroad' (which I presume means for standing orders and direct debits). In exchange, they're giving account holders free European travel insurance if they credit more than £750 a month to their account, and reducing the fee for bounced payments from £30 to £15.

Presumably this is designed to get rid of customers like me, who only use their Flexaccount for the Visa card while abroad and put just enough money in it as needed. However, reducing the overdraft charges while charging people in credit for DDs and SOs is an obscene moral hazard - yet another example of the responsible being forced to subsidise the feckless.

Nationwide will achieve their objective - I will be closing my Flexaccount shortly before the new charges are introduced on 1 November. I will also be closing the ISA with £20k in it and taking that elsewhere out of protest, and if NW ask, I'll tell them why. Hopefully enough savers who also have Flexaccounts will do the same and Nationwide will learn a lesson about the law of unintended consequences.

Well, I read the same letter and concluded they were only referring to CHAPS and SWIFT payments. i.e. increasing the charges from £20 to £25.

This would appear to confirm that, but if you are correct about standing orders/direct debits please let us know.

Cheers

http://www.nationwide.co.uk/current_account/flexaccount-changes.htm

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A new 2% charge on oversea's cashpoint withdrawals. Not sure if this includes Europe.

When my bond matures with them next month all my money is going to be withdrawn.

Since their profits tanked this year it's quiet surprising how far they going with new charges.

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http://www.nationwide.co.uk/current_account/flexaccount-changes.htm

Commission charge for non-UK transactions 2.00% of the transaction amount

Non-UK cash withdrawal charge (as well as the commission charge) £1 for each withdrawal

Umm, thats gettin expensive now........

So withrawing $500.00 in say Australia, thats a $10.00 charge plus £1.00 so roughly at $1.7 to £1 thats £6.90 costs...........

sign up with these

http://www.ozforex.com.au/

£7.00 one off fee for as much as you need, the problem arises as you need a local currency account

Edited by Panda

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Just had a letter from Nationwide explaining that they are scrapping their 'no transaction fee abroad' deal on Flexaccount Visa .......

Added to:

  • extra day for cheques to clear
  • £10 to replace your card if it is damaged/lost etc
  • Have to have cleared funds the night before the day a transfer/payment is due to be made (WTF)

I think I will also consider closing my NW account...

Edited by Bubble&Squeak

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Well, I read the same letter and concluded they were only referring to CHAPS and SWIFT payments. i.e. increasing the charges from £20 to £25.

This would appear to confirm that, but if you are correct about standing orders/direct debits please let us know.

I was going by what the letter said ('...charges for UK and overseas electronic payments...'). Given that SWIFT is specifically for overseas transfers and no-one uses CHAPS unless they're moving hundreds of thousands and thus need the security and/or speed, I assumed that this included bogstandard DDs and SOs, given the reference to UK as well. But you're right - their website only mentions SWIFT and CHAPS. I wonder how many people will infer what I did and think about closing their Flexaccounts?

It's pretty obvious from all this that they're trying to dissuade people from having Flexaccounts as additional current accounts. Thinking about this further, I might leave mine open and dormant with a tiny sum in it, just to have the satisfaction of knowing that I'm hitting them with the administration costs.

As for overseas transactions, I think I'll just use cash from now on, obtained from an online foreign currency vendor before departure.

Edited by The Ayatollah Buggeri

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It's pretty obvious from all this that they're trying to dissuade people from having Flexaccounts as additional current accounts. Thinking about this further, I might leave mine open and dormant with a tiny sum in it, just to have the satisfaction of knowing that I'm hitting them with the administration costs.

As for overseas transactions, I think I'll just use cash from now on, obtained from an online foreign currency vendor before departure.

But that is the point, they have had to make changes as so many people were taking the piss and using the Flex account only for the using overseas advantages. I know several people who were doing this so really it is the minority who are ruining it for the rest of us who were using the account as it should have been.

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But that is the point, they have had to make changes as so many people were taking the piss and using the Flex account only for the using overseas advantages. I know several people who were doing this so really it is the minority who are ruining it for the rest of us who were using the account as it should have been.

We only use ours for travelling and will be using it in the coming week. I believe the changes come into force Oct/Nov?

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But that is the point, they have had to make changes as so many people were taking the piss and using the Flex account only for the using overseas advantages. I know several people who were doing this so really it is the minority who are ruining it for the rest of us who were using the account as it should have been.

If it 'should have been' used as a main current account only, then why didn/t the T & Cs enforce this (e.g. by requiring, say, a minimum £1k deposit into the account each month) anyway? And in my case, the £20k I have in a Nationwide ISA currently earning a lot less interest than Nationwide are taking in on the mortgages they lend is earning them a lot more than I'm costing them in debit card use overseas. One of the reasons I got the account was that the application process was simpler, given that I was an existing savings customer. I won't be any longer - that ISA is going. If anyone is 'taking the piss' it's Nationwide's mortgage holders who are being subsidised by the low interest rates on my savings. When NW publicly declare that there will never be more than a 0.5% gap between their lowest mortgage rate and their highest savings rate, then and only then can they talk about fairness with any credibility.

Edited by The Ayatollah Buggeri

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Yeah,I complained about this a couple of days ago. The HSBC sent me new terms and conditions too so I told them to shove them.

The banks seem to think they can do what they want...with OUR money.

The nationwide used to be a good place to bank...in my opinion I think they have gotten too big for their own good and for the good of their customers.

I for one am sick of them and their attitude.

They seem much less of a mutual and much more of a bank.

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But that is the point, they have had to make changes as so many people were taking the piss and using the Flex account only for the using overseas advantages. I know several people who were doing this so really it is the minority who are ruining it for the rest of us who were using the account as it should have been.

I spend 5 months of the year in Thailand and use my Nationwide card exclusively for withdrawing cash from ATM's as do most of the expats I have chatted with about this subject who live there.

It was only a matter of time before Nationwide realised how much they were loosing on each ATM withdrawal.... Nat West charge about £10 to withdraw £250 from the same Thai ATM.

I will simply go back to my old system of transferring £5K at the start of my holiday which costs a one off fee of £20 by international transfer from the Nat West to my Bangkok bank account then use my local ATM card.

Probably keep the Nationwide card for use in the UK.

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I heard about this a few days ago, but have yet to get the letter.

Just looked up Co-op bank, which was for so many years the other one (along with Nationwide) to resist a wide range of charges. No luck there.

So is there anyone left offering ripoff-free travel? Could this open up a nice niche for hotels: book and pay in your own currency, take money out in local currency (add to bill of course), absorb extra charges in room rate? Could work well for business travel, but less useful when there isn't a hotel involved.

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But that is the point, they have had to make changes as so many people were taking the piss and using the Flex account only for the using overseas advantages. I know several people who were doing this so really it is the minority who are ruining it for the rest of us who were using the account as it should have been.

That would argue for restricting it to customers using the flexaccount as main current account.

My salary goes in, all my DDs and SOs go out, and I regard ripoff-free travel as one of the benefits of my choice of current account. Those benefits seem to be rapidly diminishing, though looking at the alternatives doesn't encourage me to switch :angry:

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I heard about this a few days ago, but have yet to get the letter.

Just looked up Co-op bank, which was for so many years the other one (along with Nationwide) to resist a wide range of charges. No luck there.

So is there anyone left offering ripoff-free travel? Could this open up a nice niche for hotels: book and pay in your own currency, take money out in local currency (add to bill of course), absorb extra charges in room rate? Could work well for business travel, but less useful when there isn't a hotel involved.

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I was told by a HSBC lady that premier account holders get free foreign cash withdrawels. I havnt checked on this but she seemed sure it was correct. Any body know if it true?

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That would argue for restricting it to customers using the flexaccount as main current account.

My salary goes in, all my DDs and SOs go out, and I regard ripoff-free travel as one of the benefits of my choice of current account. Those benefits seem to be rapidly diminishing, though looking at the alternatives doesn't encourage me to switch :angry:

Same position here, the fee free use of the card abroad was one of the reasons for me chosing this as my current account. I am surprised this was not in the terms and conditions for opening one.

All accounts have different selling points and this was one of the stand out ones that made me chose Nationwide when Natwest finally pissed me off so much I left them a few years ago. I will have a look around for other accounts but they now seem to be reduced to gimmicky levels like "£5 a month" for holding the account so I doubt there is much better out there.

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Just had a letter from Nationwide explaining that they are scrapping their 'no transaction fee abroad' deal on Flexaccount Visa debit cards, and introducing charges for 'electronic payments in the UK and abroad' (which I presume means for standing orders and direct debits). In exchange, they're giving account holders free European travel insurance if they credit more than £750 a month to their account, and reducing the fee for bounced payments from £30 to £15.

Presumably this is designed to get rid of customers like me, who only use their Flexaccount for the Visa card while abroad and put just enough money in it as needed. However, reducing the overdraft charges while charging people in credit for DDs and SOs is an obscene moral hazard - yet another example of the responsible being forced to subsidise the feckless.

Nationwide will achieve their objective - I will be closing my Flexaccount shortly before the new charges are introduced on 1 November. I will also be closing the ISA with £20k in it and taking that elsewhere out of protest, and if NW ask, I'll tell them why. Hopefully enough savers who also have Flexaccounts will do the same and Nationwide will learn a lesson about the law of unintended consequences.

Where do you get this idea from?? Its completely the other way around. The typical admin cost of an unauthorized overdraft payment is £1 per transaction. Thus charging £30 for this, a 3000% markup is a little excessive don't you think? In fact £15, a 1500% markup is still way excessive. Your not subsidizing them, they are subsidizing you.

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Just had a letter from Nationwide explaining that they are scrapping their 'no transaction fee abroad' deal on Flexaccount Visa debit cards, and introducing charges for 'electronic payments in the UK and abroad' (which I presume means for standing orders and direct debits). In exchange, they're giving account holders free European travel insurance if they credit more than £750 a month to their account, and reducing the fee for bounced payments from £30 to £15.

Presumably this is designed to get rid of customers like me, who only use their Flexaccount for the Visa card while abroad and put just enough money in it as needed. However, reducing the overdraft charges while charging people in credit for DDs and SOs is an obscene moral hazard - yet another example of the responsible being forced to subsidise the feckless.

Nationwide will achieve their objective - I will be closing my Flexaccount shortly before the new charges are introduced on 1 November. I will also be closing the ISA with £20k in it and taking that elsewhere out of protest, and if NW ask, I'll tell them why. Hopefully enough savers who also have Flexaccounts will do the same and Nationwide will learn a lesson about the law of unintended consequences.

I used my card exactly like you and will also be closing it.

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I used my card exactly like you and will also be closing it.

Yup - only reason to have the account was that - must have saved me well over 400 quid when I went on a round the world trip for a year (funded purely from my deposit for a house fund which I decided in 2006 was rather pointless considering crazy HPI). Sad really, but sign o' the times. Still, since I got back from that trip I haven't been abroad, and have very little intention to in future.

If I did go away, it'd be great to cut the scalpers and banks etc out (if only for the first transaction of the trip) by swapping some of my UK currency at the exact current spot rate with someone going in the opposite direction.....love to organise something like this.

Edited by Frugal Git

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On a similar subject I received a letter from Lloyds today.

"There will be a new £5 Monthly Overdraft Usage Fee" - basically if you make use of your agreed overdraft facility they're charging a £5 fee every month in addition to charging the interest they usually do. Plus they're ending the (miniscule) interest paid on current account balances.

Think it might be time to find a new bank after 29 years :| I've been meaning to leave anyway since they capitulated to Brown & saved his **** by "buying" the bankrupt HBOS Group.

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So is there anyone left offering ripoff-free travel? Could this open up a nice niche for hotels: book and pay in your own currency, take money out in local currency (add to bill of course), absorb extra charges in room rate? Could work well for business travel, but less useful when there isn't a hotel involved.

You can buy pre-loaded debit cards that you then use in ATMs or for payments in the destination country, but the exchange rates and fees involved don't make them very attractive and you need separate ones for each country (and in any case, the last I investigated, you could only get them in US dollars and euros).

I think what I'm going to do after November is simply to take enough cash with me to cover my entire expenses for a given trip, purchased from a UK-based online foreign currency supplier offering a reasonable rate, and also ensure that I have travel insurance to cover all the cash should it get nicked. There might be one or two things where I have no choice but to pay by card (e.g. the fee for adding an extra suitcase when checking in for a flight online), but it shouldn't be any more than that.

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Just had a letter from Nationwide explaining that they are scrapping their 'no transaction fee abroad' deal on Flexaccount Visa debit cards,

Further to the chat here, I just got my letter from Nationwide saying they are removing the fee free overseas transactions but for anyone who is using it properly as a current account will get annual European travel insurance as part of the account. I have not had time yet to look at all the details properly.

I am surprised they dont change the conditions so that people using it as a current account can continue to get the fee free transactions.

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You can buy pre-loaded debit cards that you then use in ATMs or for payments in the destination country, but the exchange rates and fees involved don't make them very attractive and you need separate ones for each country (and in any case, the last I investigated, you could only get them in US dollars and euros).

I think what I'm going to do after November is simply to take enough cash with me to cover my entire expenses for a given trip, purchased from a UK-based online foreign currency supplier offering a reasonable rate, and also ensure that I have travel insurance to cover all the cash should it get nicked. There might be one or two things where I have no choice but to pay by card (e.g. the fee for adding an extra suitcase when checking in for a flight online), but it shouldn't be any more than that.

I wonder if the free travel insurance being introduced by Nationwide as the new "perk" will cover your cash?

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Banks and the Nationwide seem to think "offering a service" involves taking peoples hard earned cause from them and giving it out as massive salries and bonuses to their top men. All sanctioned by the BoE and their friends in Government.

I say **** 'em, put you money into the smaller mutuals.

What a bunch of c****s

Edited by TheCountOfNowhere

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