NATIONWIDE will make a number of changes to its key accounts in a matter of months.
On Friday, the bank told customers it has plans to make some changes for its current account and FlexDirect users.
It is not uncommon for banks and building societies to make changes to customers’ accounts, particularly when it comes to interest fees or overdraft charges.
Nationwide has announced a number of changes for current account holders, which are set to come into place by May 2025.
The update includes new protections to help victims of fraud and changes to how much you can pay into your account.
A Nationwide spokesperson told The Sun: “We have reviewed our terms and conditions to ensure they are as clear as possible to our customers.”
Below we have rounded up four major changes for current account holders set to take place over the coming months, which you can check out below.
Donate money in your account to a charity
when it closes – May 1
If you have a current account with Nationwide and it closes, the bank said from May it could pay whatever small amount is left over to a charity.
Nationwide can close a current account if it is unused for 15 years, but the bank will try to contact account holders before closing it.
Nationwide said the charitable donation would be in very limited circumstances and only if customers don’t have another current account with the bank to which they can pay the money.
The changes also only apply if you have a small amount of money in it when it closes, such as a few pounds or pence.
Nationwide will contact customers before this happens and you can still ask for the money to be returned.
Changes to fees for FlexDirect customers – May 1
Nationwide has lowered the fee for sending large amounts of money to someone in the UK through CHAPS.
CHAPS stands for Clearing House Automated Payment System and it is used by customers who need to send money between banks in the UK.
Nationwide currently charges customers £20 to send large amounts of money between UK bank accounts but it said from May it will lower this to £15.
The bank also said it would lower its fees for sending money between bank accounts from outside of the UK from £20 to £15.
New limits to the amount of money you can pay into your account – May 1
Nationwide can already apply limits to the amount of money you can pay into your account.
These limits can be applied to cash deposits, cheque deposits, and payments made online or in branch.
For example, the amount of cash you can pay in at any Nationwide branch counter is £5,000 per account, per day.
This information is usually available for customers on the Nationwide website.
But the bank said that come May, it could adjust the amount of cash customers can deposit without letting customers know.
The bank said that this is reduce the risk of cash-based money laundering.
If you are planning to lodge a significant amount of money in your account it may be worth ringing your local branch ahead of time to make sure the transaction can go ahead.
New protections for fraud – April
Nationwide said it is adding new protections so that you can get your
money back if you have been a victim of a scam.
It comes as part of new rules launched in October by regulators, which require banks to reimburse people tricked into transferring money to a fraudster; these rules have come into force today.
Under the shake-up, banks must reimburse authorised push payment (APP) fraud victims unless the customer has been “grossly negligent”.
Customers were initially set to receive reimbursements of up to £415,000.
However, the new rules have now implemented a cap of £85,000.
Banks can exceed this limit and repay higher amounts if they choose.
Nationwide said it will refund customers up to the maximum amount set by regulators if the payment was made in British Pounds
by bank transfer to another UK account.
However, the bank warned that in some instances you may not get the money back.
This includes if you ignore a warning from Nationwide, the police or another authority that you might be a fraud victim.
You may not also get a refund if you don’t tell Nationwide within 13
months of the final scam payment from your account
If you think you have been a victim of a scam, you can report it on the Nationwide website by visiting www.nationwide.co.uk/help/fraud-and-security/reporting-fraud-or-a-scam/.
You can also call its helpline on 0800 055 66 22.
What is the difference between a current account and FlexDirect account?
Nationwide’s current account allows people to manage their daily finances and access their cash quickly.
Typically customers use these types of accounts to lodge their wages or pay bills.
Meanwhile, Nationwide’s FlexDirect account pays customers interest on the money they have lodged in the account.
With this offer, customers get a 5% AER for the first 12 months on cash paid into the bank; this then lowers to 1%.
You do not have to pay a monthly fee to have this type of account nor do you face fees for withdrawing money.
AER, or Annual Equivalent Rate, is used to show you what you could earn from a savings account over a year.
If it is high, it means you will have more money in your savings account over a year because it indicates a higher rate of interest being paid on your savings.
Types of savings accounts
THERE are four types of savings accounts fixed, notice, easy access, and regular savers.
Separately, there are ISAs or individual savings accounts which allow individuals to save up to £20,000 a year tax-free.
But we’ve rounded up the main types of conventional savings accounts below.
FIXED-RATE
A fixed-rate savings account or fixed-rate bond offers some of the highest interest rates but comes at the cost of being unable to withdraw your cash within the agreed term.
This means that your money is locked in, so even if interest rates increase you are unable to move your money and switch to a better account.
Some providers give the option to withdraw, but it comes with a hefty fee.
NOTICE
Notice accounts offer slightly lower rates in exchange for more flexibility when accessing your cash.
These accounts don’t lock your cash away for as long as a typical fixed bond account.
You’ll need to give advance notice to your bank – up to 180 days in some cases – before you can make a withdrawal or you’ll lose the interest.
EASY-ACCESS
An easy-access account does what it says on the tin and usually allows unlimited cash withdrawals.
These accounts tend to offer lower returns, but they are a good option if you want the freedom to move your money without being charged a penalty fee.
REGULAR SAVER
These accounts pay some of the best returns as long as you pay in a set amount each month.
You’ll usually need to hold a current account with providers to access the best rates.
However, if you have a lot of money to save, these accounts often come with monthly deposit limits.
