A popular bank used by Brits is hiking the price of one of its most used accounts by £60 per year from today.
Nationwide has announced that it will be increasing the cost of its in-demand FlexPLus packaged account by £5 a month for both new and existing FlexPlus customers. Now £18, the charge was originally £13 a month, amounting to £156.
From today, the yearly cost for the account will rise to £216.
The FlexPlus bank account differs from the traditional one where customers can reap the benefits of a range of insurance policies for both the account holder and their family.
This includes travel and mobile phone insurance, plus breakdown cover. Members with FlexPlus are also able to get preferential rates on loans and overdrafts.
This is the first increase by the building society since 2017, which came due to the rising cost of insurance, according to Nationwide.
The bank previously said in a statement: “We have held back raising the fee for FlexPlus since 2017. However, the rising cost of insurance means we now need to make changes, taking effect from December. Even after this change, FlexPlus will continue to be one of the UK’s most competitive packaged current accounts, both in price and quality of cover.”
However, Sarah Coles, personal finance expert at Hargreaves Lansdown, said that the £5 hike means the account will no longer be “one of the cheapest” on the market. She said: “This is particularly the case for families who plan more than one holiday this year, have smartphones that need insurance and who would otherwise buy car breakdown cover.”
Sarah added: “If you want a lower monthly charge, you can get the Virgin Money M account which comes with similar cover. Just check you’re happy that you still get what you need.”
As it stands, Nationwide’s closest competitor is Virgin Money with their Club M account.
The account fee is £12.50 a month which comes with free gadget insurance, worldwide family travel insurance and UK and European breakdown cover, and there’s no minimum pay in.
