Why everyone is switching their current account to Nationwide

A record number of people have moved their current accounts to Nationwide this year.

Nationwide Building Society has revealed that it’s opened 365,000 new current account in the first quarter of this year.

In total 123,000 people have switched to the mutual for their main account, a new record and jump of 58% on last year.

So why are so many people moving to Nationwide? Let’s take a look at the current accounts on offer.

Nationwide’s current accounts

Nationwide offers three current accounts.

First is the FlexAccount. It includes free European multi-trip travel insurance and a three month interest-free overdraft.

Then there’s the FlexDirect. This account pays a market-leading 5% AER on in-credit balances of up to £2,500 in the first 12 months, so long as you pay £1,000 in each month. It also boasts a 12-month fee-free overdraft.

If you don’t mind paying a fee for your current account, there’s the FlexPlus, which will set you back £10 a month. This account pays a very competitive 3% AER on balances up to £2,500. It includes worldwide travel insurance, breakdown cover and extended warranty. It also boasts a three month fee-free overdraft, with a £100 fee-free limit after that.

Finally, with this account you get commission-free cash withdrawals when overseas.

I’m not a fan of packaged accounts personally as much of the time the ‘benefits’ included aren’t worth the money you pay.

However, I can certainly see why the FlexAccount and FlexDirect are proving so popular. The insurance included with the FlexAccount is a fantastic free bonus, while the interest on offer from the FlexDirect beats most savings accounts, let alone other current accounts!

Its nearest rival is the 123 current account from Santander, which pays up to 1% on balances above £1,000, 2% on balances above £2,000 and 3% on balances from £3,000 to £20,000. In Santander’s favour, it pays this interest for longer than just a year, while it also offers the chance to earn cashback on certain monthly direct debits.

It’s not a bank!

A final reason that some of these people may have switched to Nationwide is down to its mutual status. It’s not a bank – it doesn’t have shareholders worrying about profits and share prices. Instead, by its very nature, it has to focus on its members and ensure it meets their needs.

And in the current climate it should be no surprise that’s an attraction for some.

Have you switched to Nationwide? Or have you moved your cash elsewhere? If so, why? What’s most important to you when it comes to selecting a current account?

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More on current accounts:

Get paid £100 to switch banks

NatWest and RBS most expensive for foreign cash withdrawals

The Post Office launches three new current accounts

Five places where you can get an overdraft for free