Switch to Nationwide’s FlexDirect current account via MoneySuperMarket and you'll now get £100 cashback (terms and conditions apply).
This is on top of the handsome 5.00% AER (fixed) the account pays on balances up to £2,500 for the first year.
To qualify, you must pay in £1,000 a month.
After the 12 months are up, the rate falls to 1.00% AER (variable). You don’t earn any interest on balances over £2,500.
What’s more, if you go into the red, there’s no fee on agreed overdrafts for the first 12 months.
After that you’ll be charged 50p every day you are overdrawn, although the first £10 of your agreed overdraft is free. (Overdrafts are subject to status and approval.)
If you go overdrawn without arranging it in advance, you’ll be hit with a £5 daily charge, capped at £60 per month.
Is this for you?
If you tend to stay in credit, this account is a great choice as 5.00% is a market-leading current account rate.
And with a £100 switching bonus thrown in, you’ll be quids in just for moving your account.
This account is also likely to suit you if you’re frequently overdrawn. Having a fee-free overdraft for the first year could help you to get on top of your debts as you won’t be hit with any charges.
Just bear in mind if you are overdrawn, you won’t receive interest.
What makes it special?
It’s rare to find a current account that’s a good deal whether you’re in-credit or overdrawn, but the FlexDirect account ticks both these boxes.
You’ll have peace of mind that when you’re in credit you’re earning a high rate of interest on your hard-earned cash, and when you’re overdrawn, there won’t be any charges for the first year.
And of course, the £100 for switching is a great bonus.
Watch out for
As mentioned, the 5.00% rate drops to 1.00% after the first 12 months, so if it’s high returns you’re interested in, you might want to look at another current account switch then.
You must also be certain you can afford to pay £1,000 into the account every month, otherwise you won’t be eligible for the 5.00% rate.
And don’t go into the red without arranging it with the building society first, otherwise those hefty £5 daily charges could soon mount up.
Finally, you must be aged at least 18 and a UK resident to qualify for the account.
What else is worth a look?
The 5.00% AER (fixed) on the FlexDirect account can’t be beaten, but you can also earn 5.00% AER (variable) with the TSB Classic Plus Account on balances up to a lower £2,000.
TSB’s 5.00% rate is ongoing rather than for a limited time, although it is variable so it could change at any time.
You must pay in at least £500 a month and register for internet banking and paperless correspondence to qualify for the TSB account.
However, this account is less appealing than the FlexDirect account if you plan to use your overdraft.
You’ll pay a £6 monthly overdraft usage fee if you have the TSB account and use an arranged overdraft of more than £10 in any month.
You only have to pay this charge once a month no matter how many times you go overdrawn that month, but remember, there’s no charge if you go overdrawn in the first year with the FlexDirect account.
Other options if you’re looking for decent returns on your current account balance include Santander’s 123 account. This account pays tiered rates of interest, so the higher your balance, the more you earn.
You’ll get 1.00% AER (variable) if your balance is £1,000 or more, and 2.00% AER (variable) if you have £2,000 or more in your account. The top rate is 3.00% AER (variable) which you get if your balance is between £3,000 and £20,000.
The Santander account also pays cashback of up to 3% on your daily spending.
Please note: any rates or deals mentioned in this article were available at the time of writing. Click on a highlighted product and apply direct.