Nationwide Overdraft Charges @

Nationwide Overdraft Charges

Nationwide Building Society is the world’s largest building society. Lots of merges have occurred over the years, but their roots can be traced to 1846. Geoffrey Howe is the current Chairman and there are 14 million members and 600 high street branches. Picking out the Nationwide overdraft charges at was pretty straight forward since they only have three main accounts. This includes FlexAccount, FlexDirect and FlexPlus. There is also the basic Cash Card Account, but this includes no such borrowing facility. They are by far the most dominant building society. Britannia was their closest competitor, but they were of course swallowed up by The Co-operative.

The Nationwide overdraft charges are clearly presented at Starting with FlexAccount, this has a 3 month interest-free overdraft when you switch with them. Interest is charged at 18.9% EAR when this ends. If you enter unarranged by more than £15 then unpaid transaction fees of £15 are charged. FlexDirect includes free overdrafts for a year and you don’t have to switch. You then pay 50p per day and this extends up to £10 unarranged. This follows with £5 per day and this amount is also used for unpaid transactions. These costs are excessive, but they do have monthly caps in place as noted below.

The FlexDirect grants 5% AER on balances up to £2,500 for the first 12 months (this drops to 1%). FlexPlus is the only paid account costing £10 per month. This starts out for 3 months at 0% and it then has a £100 fee-free limit. Anything above is 50p daily and this again covers being £10 into the red. You then pay £5 daily, but no payment transaction fees are imposed. The fees as noted have caps. Direct is £60 (with £35 for transactions) and Plus is £50 (no paid/unpaid transaction fees). With FlexAccount, you only pay 18.9%, with the paid/unpaid cap being £75.