Nationwide FlexDirect current account review: 5% interest & 1% cashback

Top paying interest, ethics and a decent switching bonus make the account worth considering again.

There’s been a revamp of the account. Not only does it offer one the highest interest rates (for some), newbies can also now get 1% cashback on spending. Plus you can nab a decent switching bonus. It also ranks well as an ethical bank and scores highly for customer service. However, the building society has ditched the large 0% overdraft.

So are these extras enough to make it your main account? Here’s what you get with the FlexDirect, and whether you should open up an account.

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What is the Nationwide FlexDirect account?

The FlexDirect account is a current account from the Nationwide Building Society. It’s free to open and use, though you do have to pay in at least £1,000 a month to get the interest. That doesn’t need to be in one go, or stay in the account.

You cannot get the account if you already have four or more Nationwide current accounts.

Unlike many competitors, Nationwide has a decent network of branches you can access across the UK, and there’s also a phone support line.

In account interest of 5%

Nationwide’s FlexDirect account is one of the few current accounts that pay interest on balances held in the main account. And it’s usually a much better rate than you’ll get in normal easy-access accounts.

You can get 5% interest on savings – which is hard to beat right now. The rate is also fixed, which you will get 5% for the entire year.

And you can boost your earnings if you’re in a couple. You can each have an account, and then open up a joint account too, meaning you’ll earn the 5% on £4,500.

You have to pay in £1,000 every month to qualify for the interest. This can’t be from another Nationwide account.

Sounds good? Well it has its limits.

First, there is a very important rule that could be an issue – this rate is for first-time account holders only. So if you’ve had the FlexDirect account before, you won’t get the new rate, even if you open up a new account.

You also only earn money on the first £1,500. Above this you get 0%. This means if you have the full amount possible in the account for 12 months you’ll make £75.

Also the rate also only lasts for one year (after that it drops to 1%), so you will want to move your money in 12 months.

1% cashback on spending

A new feature is cashback on spending with the debit card. It’s only for new customers who’ve not had a FlexDirect in the past. You also need to be paying in the same £1,000 each month to trigger this as you do the interest, though that’s a single payment for both perks, not each.

As with the 5% interest, this cashback is only for the first 12 months. It’s also capped at £5 cashback each month, so it’ll only apply to the first £500 you spend each month.

Cashback won’t be paid on gambling, crypto transactions or cash withdrawals.

FlexDirect 0% overdraft

Sadly with the addition of the 1% cashback, Nationwide has ditched the sizeable 0% overdraft that was available for the first year.

In its place there will be a £50 interest free buffer across all Nationwide accounts. It’ll be added from November 2024. Our guide to the cheapest overdrafts will help you find a larger alternative – though there aren’t many options left now.

Nationwide switching bonus

I’ve written about Nationwide’s bank switching deal in detail in a separate guide, but here are the essential need-to-knows:

Nationwide has an ongoing £175 incentive for bank switchers with no set end date, but that could mean it goes any time. It’s open to new and existing customers, so if you open or upgrade to a FlexDirect account you’ll be eligible.

You can only claim the cash once on a personal account, but unlike other banks, you can get an extra bonus if you switch a joint account (there’s just one payment for both of you on this). So a couple you could have three switching bonuses in total.

Other Nationwide perks

Regular saver 6.5%

There’s also a 6.5% paying regular saver only for all Nationwide current account customers. This can be beaten by a handful of other providers, but isn’t a bad bet.

Annual member bonus

Though there’s no guarantee it’ll still be on offer in 2025, for the last two years Nationwide has offered members with an active current account and savings or mortgage product on top a £100 ‘Fairer Share’ bonus. Here’s everything you need to know about when Nationwide last offered this free cash.

Nationwide’s app

So far so good. Now the bad. The app is one of the main reasons I moved my main banking from Nationwide to Starling a few years ago.

There have been some massive improvements, but it still falls short of the features you get from challenger banks like Monzo, Starling and Chase.

So what does it do? You can activate a couple of features to help you save. One, Impulse Saver lets you add money to your savings account from the homescreen of the app.

The other is a round-up feature, as you see with many other banks. If you turn this on a small amount of money will be transferred each time you spend. So say you spend £1.20 on your debit card, 80p will go to savings.

You’re also able to lower your contactless limit, freeze your card and block gambling transactions.

My big frustration is that you still need a card reader. Though a recent update has reduced how often this is required, including for app payments, you can’t throw it away. And it’s not clear when you will and when you won’t need it – it just says “for some other things”, which looks like could still include setting up new payees. Of course, that might not be a bad thing as it does add an extra layer of security, but it’s not something most of the other banks I use require.

You also can’t access card details, and it’s a few clicks to find and copy or share account numbers. There are also no tracking or budgeting features.

Account Ethics

Something I’ve been thinking about more over the last few years has been how the money I keep in a bank is being used. It’s not sitting in a vault, it’s being invested and loaned by the bank. And that could mean it’s used for things I really don’t agree with – from supporting arms manufacturers through to funding new oil pipelines.

If this bothers you too then Nationwide is regarded as one of the best options. A big part of this is that it’s a building society rather than a bank, which means it has to use 75% of its holdings to lend to home buyers.

That prevents it lending large amounts to unethical sources – but it also has a positive investment policies. For example your money will not be invested in fossil fuels.

Nationwide is also a mutual – meaning it’s owned by and run for the benefits of its customers (or members) rather than shareholders.

Ethical Consumer rates Nationwide ahead of all the other major banks, so it’s a good bet if you want to put your money somewhere other than low-scoring banks such as HSBC, Natwest, Barclays, Lloyds, Santander and co.

And while the top-rated current account for ethics is from Triodos, that comes with a £3 monthly fee and a more limited app, so Nationwide represent a good alternative.

Should you open a Nationwide FlexDirect account?

What do customers say?

Customer reviews on our sister site Smart Money People rate the FlexDirect account at 4.24 out of 5, liking the customer service and the availability of high street branches. The app is where people think it could do better.