Nationwide clients warning as bank hikes charge for FlexPlus | Personal Finance | Finance
A packaged bank account loved by Brits has hiked its prices after “significant rises in the cost of providing insurance“.
Nationwide’s FlexPlus accounts fee rose in price by £5 a month or £60 a year on December 1 – marking the building society’s first increase since 2017.
The change, which applies to both new and existing customers, means the monthly plan now costs £18 instead of £13 and the annual cost is now £216 instead of £156.
“We have kept it at this amount for as long as we could, but over this period the cost of providing insurance as risen significantly,” Nationwide said in a statement. “This means we now need to adjust the fee.”
While the price increase might look daunting on paper, FlexPlus accounts could still offer a better value for money than competing banks, thanks to the perks of the Nationwide bundle.
For £216 a year, account holders will have access to worldwide Aviva travel insurance, Assurant mobile insurance and AA vehicle breakdown cover. FlexPlus was also found by Which to be one of only three packaged accounts in the UK to offer fee-free cash withdrawals and spending abroad.
It also topped Which’s table of best packaged bank accounts in November, despite the cost hike, with experts praising its no age limit policy and “combination of a good price, excellent policy scores and high customer satisfaction”.
It follows changes also made by Lloyds and Natwest to some of their packaged accounts this summer, amid rising costs in the global insurance market in the wake of Covid and a rise in medical costs abroad.
Figures from the Association of British Insurers (ABI) show that 574,000 travel insurance claims were filed in 2023, with payouts totalling £511 million – a year-on-year rise of over 50 percent.
While it might still be possible to save money by staying with Nationwide, those looking to switch providers in light of the price change could consider thriftier equivalents including the NatWest Reward Silver account, which chargers only £10 a month and comes with Europen travel and mobile phone insurace – but no vehicle cover.