Nationwide to hike fee on FlexPlus bank account by £36 a year – is it still worth having?
NATIONWIDE has unveiled a series of changes to its flagship FlexPlusCurrent account which comes with a hefty price hike of £36 over a year.
The account has long been a customers’ favourite for the £600 worth of insurance it offers. The Sun Online has also previously listed it as one of the four best accounts for customers because of its extra perks.
Now has revealed that the building society is overhauling the account. Existing customers will be sent letters next month and the changes will be introduced on September 21 this year.
The changes means that the customers fee for the packaged bank account will be increasing from £10 to £13 per month – or an extra £36 over a year. Some of the account’s perks will also be scrapped.
This includes the cover for an extra 12 month on all new household electrical items costing between £50 and £2,000. It's also getting rid of its ID fraud and card assistance perks too.
But it's not all bad news. It's extending its travel insurance to cover family members who are under 19 – or under 22 if in full-time education – when they go on holiday independently.
It also means that anyone who lives at the account holder’s address can get mobile phone insurances, up to the value of £1,000 and including children up until the age of 19 or 22 if they’re in full-time education.
And the changes mean that rather than having a maximum of two claims a year, customer will get four.
A spokesperson for NationaWide told the Sun Online: "The cost of providing the insurances has significantly increased since the account was first launched in March 2013. Since launch we have had consistent year-on-year increases which has increased the cost to the Society. For example, the cost of the exchange rate, particularly for Travel, has increased, in addition to IPT tax and the cost of mobile phone handsets has also risen."
Is the Nationwide FlexPlus account still worth having?
After the overhaul, MSE’s chief product analyst Helen Saxon thinks that the offer is still decent but advises customers to work out whether it will save them money.
She said: “Whereas before it was the runaway winner, it will now be much more nuanced as to whether this account will win for you, or whether you'd be better going for a competitor – Halifax, Co-op and NatWest all have strong packaged account offerings,” she said.
How do I switch bank account?
MOST banks will require new customers to switch using the free Current Account Switch Service.
This programme takes care of the bank switching process for you by moving all your incoming and outgoing payments, moving your outstanding balance and closing your old account.
The majority of banks are signed up to the service so you’ll use it automatically when applying and switching to a new account via the bank’s website or in branch.
The guarantee means that if anything goes wrong with the switch you will be refunded for any financial losses incurred.
"The general packaged account rules still stand though. Before choosing any account, ensure you'll use enough of the insurance to make it worthwhile, and that you can't get cover cheaper by buying it separately," she added.
Hannah Maundrell, Editor in Chief of money.co.uk said customers are more likely to choose deals that are more suited to their needs by staying away from the “one size fits all” accounts.
Is switching worth the hassle?
Switching bank accounts does require some effort, but yes it is worthwhile to switch if the bank you’re switching to offers a higher rate of interest than you’re currently getting, good perks (such as free travel insurance) and has good customer service.
Switching just for the cash perk when you’re with a bank that offers good service, low overdraft rates and decent interest, may not be the right decision for you.
The accounts that give the most cash for switching
- First Direct pays £100 to new customers who switch their everyday banking to them
- M&S Bank will give a free £125 gift card to new customers, and you can get £5 added to the gift card for free each month if you pay in £1,000 per month
- The Co-operative Bank will who switch to it, plus up to £5.50 a month with its Everyday Rewards scheme
With the Current Account Switch Service it’s relatively easy and hassle-free to switch, because they take care of the whole process for you and have an obligation to switch your current account with seven working days.
If the switch takes longer and you lose money as a result – such as a direct debit not being paid and you’re charged a fee – they have to refund you.
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