Nationwide upgrades bank account to offer £120 cashback

When combined with the other perks, new FlexDirect holders could become nearly £500 better off over the course of a year.

Customers who apply for Nationwide BS’s FlexDirect current account from today will have the opportunity to earn up to £120 cashback during their first year, it has been announced.

The boost comes as many households may be looking for ways to stretch their money further, with nearly three in five adults (56%) reporting their cost of living had risen between June and July, according to latest data from the Office for National Statistics (ONS).

To qualify for the cashback, customers can’t have held a FlexDirect in the last three years (either in a sole name or with a joint holder) and must pay at least £1,500 into the account each month. They’ll then receive £5 cashback for every month they spend a minimum of £300 on direct debits, and another £5 cashback each month they make at least £500-worth of purchases using their debit card (equalling a possible £120 cashback in total).

When combined with the other perks offered by Nationwide BS, this means FlexDirect holders could become nearly £500 better off over the course of a year.

How you could become almost £500 better off

As well as the recently added cashback, eligible customers who switch to the FlexDirect from another current account (not held with Nationwide BS or Virgin Money) and meet all criteria can still earn an extra £175. This involves completing a full switch via the Current Account Switch Service (CASS) within 28 days (including at least two direct debits). You’ll also need to deposit a minimum of £1,000 into the account and make at least one debit card payment within 31 days of opening (or applying to switch) to receive the reward (Ts&Cs apply).

The FlexDirect also offers an inflation-busting 5.00% AER on balances up to £1,500 for 12 months (provided you pay at least £1,500 into your account each month). This means you could earn £75 in interest by maintaining a minimum balance of £1,500 for the whole first year.

What’s more, customers with a qualifying current account and mortgage or savings account have received a £100 Fairer Share payment from Nationwide BS each year since 2023.

“Nationwide’s FlexDirect account could offer customers up to £470 in value in the first year, including cashback, credit interest, the switching incentive and, assuming the £100 Fairer Share is paid again,” explained Rachel Springall, Finance Expert at Moneyfactscompare.co.uk.

How does it compare?

Treated separately, the switching incentive and cashback can be beaten elsewhere.

For instance, Santander launched a new deal earlier this month that offers eligible customers £240 for moving to its Everyday Current Account. Alternatively, HSBC pays £220 for switching to its Bank Account, while those who make the move to qualifying accounts from NatWest, Royal Bank of Scotland or Ulster Bank could earn £200.

(Note: Bigger bonuses may be available to those switching to accounts with fees or stricter criteria. Ts&Cs apply; for further details, visit our switching deals chart).

As for larger amounts of cashback, the Chase Current Account from digital bank, Chase, offers 2% on everyday spending – up to a maximum of £20 per month. Meanwhile, Santander’s Edge Up current account pays 1% cashback on selected household direct debits, capped at £15 per month (but comes with a £5 monthly fee).

However, it’s crucial to consider all features of a current account carefully to find one that meets your needs and offers the best overall value for money.

“Households are no doubt looking for simple ways to make their money go further, so it is incredibly important to take time out to review all the financial products they have, including current accounts, which are often overlooked,” Springall reiterated.