Hike in Nationwide FlexPlus Account Monthly Fee

Written by Karen Bryan

I was annoyed to read that the present £10 monthly fee charged on the Nationwide FlexPlus current account is to be hiked by 30% to £13 a month from 21 September 2017.

As if that weren’t bad enough, Nationwide are ditching the current 12 month extended warranty available on many household electrical items costing more than £50. For me, this was one of the most valuable benefits of having a Nationwide FlexPlus current account.

So it’s pay more to receive less from the Nationwide FlexPlus current account.

I feel that there has a been a steady stream of bad news from financial providers in the last year. There have been dramatic reductions in the rate of interest paid on accounts e.g. the 3% interest paid on balances of up to £20,000 in the Santander 123 Current Account halved to 1.5%. That was an annual loss of interest of £300 if you held the full £20,000 in the account.

When you factor in that inflation (measured by CPI) is close to 3%, savings earning less than this rate are losing their spending power. As far as I can see, that is almost all savings accounts, except some monthly saver accounts in which the maximum balance is usually only a few thousand pounds.

The only saving grace for my finances is that my annuity is linked to inflation, as measured by the generally higher RPI, so at least it is maintaining its spending power.