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    • laroc
    • By laroc 9th Oct 17, 9:36 AM
    • 61Posts
    • 10Thanks
    laroc
    First Direct Qualifying add-ons
    • #1
    • 9th Oct 17, 9:36 AM
    First Direct Qualifying add-ons 9th Oct 17 at 9:36 AM
    My wife has only just over £500 per month income, which is below the £1k First Direct require
    However if you take out one of their qualifying add-ons such as a Mortgage, Savings Account or Credit Card the £1k is no longer applicable.
    We dont need a Mortgage
    We dont need their Savings Account paying a miserable 0.1%
    So we can opt for the credit card
    After 2 calls to First Direct they don`t seem to know if you have to actually use the card or not ?
    As we already have Debit Cards, we dont really want to start using a credit card ?
    Has anyone been down this road, taking out an FD qualifying CC and not using it ?
Page 1
    • binaryuniverse
    • By binaryuniverse 9th Oct 17, 9:55 AM
    • 475 Posts
    • 261 Thanks
    binaryuniverse
    • #2
    • 9th Oct 17, 9:55 AM
    • #2
    • 9th Oct 17, 9:55 AM
    The T&Cs state that:

    Our account costs £10 per month unless:
    • Your account has been open less than 6 months.
    • At least £1000 is paid in each month (not including transfers from other First Direct accounts).
    • Your average account balance is more than £1000 in any calendar month
    • You have a mortgage, credit card, personal loan, savings (except Regular Saver), First Directory or Home Insurance with us.
    • There are no transactions on your 1st account for more than 90 days and the balance is less than £10
    So yes. You can take out a credit card and not use it. But then you risk it becoming dormant and you're back to your initial problem.

    Why not open a normal savings account, put £1 in, and no more? That'd satisfy the requirement.
    • eskbanker
    • By eskbanker 9th Oct 17, 10:05 AM
    • 5,890 Posts
    • 5,850 Thanks
    eskbanker
    • #3
    • 9th Oct 17, 10:05 AM
    • #3
    • 9th Oct 17, 10:05 AM
    As far as the £1,000 monthly pay-in is concerned, it doesn't state that that has to be earned income, so there's nothing to stop someone from paying in £500, taking it out and then paying it back in again to achieve the minimum monthly funding requirement for waiving the fee. However, a low income may prejudice being able to open the account in the first place, when it comes to their credit scoring and other risk algorithms.

    Re "As we already have Debit Cards, we dont really want to start using a credit card", using a credit card and paying it off in full every month does have some advantages over using a debit card, with Section 75 protection of qualifying purchases a valuable benefit in its own right - just ask Monarch Airlines customers....
    • laroc
    • By laroc 9th Oct 17, 4:25 PM
    • 61 Posts
    • 10 Thanks
    laroc
    • #4
    • 9th Oct 17, 4:25 PM
    • #4
    • 9th Oct 17, 4:25 PM
    Why not open a normal savings account, put £1 in, and no more? That'd satisfy the requirement.

    Clever, never thought of that
    Thanks very much
    • laroc
    • By laroc 9th Oct 17, 4:43 PM
    • 61 Posts
    • 10 Thanks
    laroc
    • #5
    • 9th Oct 17, 4:43 PM
    • #5
    • 9th Oct 17, 4:43 PM
    As far as the £1,000 monthly pay-in is concerned, it doesn't state that that has to be earned income, so there's nothing to stop someone from paying in £500, taking it out and then paying it back in again to achieve the minimum monthly funding requirement for waiving the fee. However, a low income may prejudice being able to open the account in the first place, when it comes to their credit scoring and other risk algorithms.
    Originally posted by eskbanker
    We also have a joint FD current account so we are OK on the Credit Scoring. Just that my wife wants to keep her pension income separate (from me) She can then spend as she wishes without me having a coronary !

    Ok about you idea of paying money in and then taking it out again
    However, this morning I read HSBC are getting wise to that ploy and have either banned it or in the process of doing so !
    Easy to detect I suppose with identical transactions each month especially if the originate from the same external account
    Certainly worth a try until they say No

    The previous reply of opening a Saver Account by just putting £1 in, is another good option
    Cant recall the Savings Interest rate but something like a paltry 0.1%
    Thanks for you time, much appreciated
    • bigadaj
    • By bigadaj 10th Oct 17, 12:01 PM
    • 10,803 Posts
    • 7,100 Thanks
    bigadaj
    • #6
    • 10th Oct 17, 12:01 PM
    • #6
    • 10th Oct 17, 12:01 PM
    We also have a joint FD current account so we are OK on the Credit Scoring. Just that my wife wants to keep her pension income separate (from me) She can then spend as she wishes without me having a coronary !

    Ok about you idea of paying money in and then taking it out again
    However, this morning I read HSBC are getting wise to that ploy and have either banned it or in the process of doing so !
    Easy to detect I suppose with identical transactions each month especially if the originate from the same external account
    Certainly worth a try until they say No

    The previous reply of opening a Saver Account by just putting £1 in, is another good option
    Cant recall the Savings Interest rate but something like a paltry 0.1%
    Thanks for you time, much appreciated
    Originally posted by laroc
    I just bounce money in and out of my HSBC account without problems. I have though complicated matters by taking advantage of their 2% debit card cashback for the last few months so it probably looks more like a real account than it did a few months ago.

    In terms of identical transactions each month originating from the same bank account this is hardly unusual, that's how the majority of the population get their salary, benefits, pension, and many other forms of income.
    • RG2015
    • By RG2015 21st Oct 17, 3:52 PM
    • 591 Posts
    • 312 Thanks
    RG2015
    • #7
    • 21st Oct 17, 3:52 PM
    • #7
    • 21st Oct 17, 3:52 PM
    The T&Cs state that:
    Why not open a normal savings account, put £1 in, and no more? That'd satisfy the requirement.
    Originally posted by binaryuniverse
    Is there a catch to this method to avoid the £10 monthly charge?

    Why would anyone choose the £1000 pay followed by moving some of it out every month rather than simply holding £1 in a savings account?
    • badger09
    • By badger09 21st Oct 17, 3:56 PM
    • 5,579 Posts
    • 4,888 Thanks
    badger09
    • #8
    • 21st Oct 17, 3:56 PM
    • #8
    • 21st Oct 17, 3:56 PM
    Is there a catch to this method to avoid the £10 monthly charge?
    Originally posted by RG2015
    No. Though I've left around £5 in mine.


    Why would anyone choose the £1000 pay followed by moving some of it out every month rather than simply holding £1 in a savings account?
    Originally posted by RG2015
    Because they don't read all the T&Cs with sufficient care
    • wiseonesomeofthetime
    • By wiseonesomeofthetime 21st Oct 17, 6:49 PM
    • 137 Posts
    • 67 Thanks
    wiseonesomeofthetime
    • #9
    • 21st Oct 17, 6:49 PM
    • #9
    • 21st Oct 17, 6:49 PM
    I pay £1 a month in to the pittance Savings Account.

    CS confirmed that action was acceptable to avoid the £10 per month charge.

    Aside of that I use the FD 1st account mainly for access to the 5% regular saver, bar the odd Visa Offer
    • anselld
    • By anselld 22nd Oct 17, 8:05 AM
    • 5,427 Posts
    • 4,994 Thanks
    anselld
    I pay £1 a month in to the pittance Savings Account.

    CS confirmed that action was acceptable to avoid the £10 per month charge.

    Aside of that I use the FD 1st account mainly for access to the 5% regular saver, bar the odd Visa Offer
    Originally posted by wiseonesomeofthetime
    There is no need to do every month. Just leave the account open with £1 in it is sufficient.
    • EarthBoy
    • By EarthBoy 22nd Oct 17, 10:59 AM
    • 1,765 Posts
    • 1,077 Thanks
    EarthBoy
    There is no need to do every month. Just leave the account open with £1 in it is sufficient.
    Originally posted by anselld
    That's correct, that's what I do and I've never paid a fee on the current account.
    • noh
    • By noh 22nd Oct 17, 11:04 AM
    • 5,134 Posts
    • 3,452 Thanks
    noh
    £1 balance in a savings account has worked for me for the last 15 years.
    • AirlieBird
    • By AirlieBird 22nd Oct 17, 12:24 PM
    • 739 Posts
    • 510 Thanks
    AirlieBird
    £1 balance in a savings account has worked for me for the last 15 years.
    Originally posted by noh
    15 years? The £10 charge was only introduced in 2007.
    • wiseonesomeofthetime
    • By wiseonesomeofthetime 22nd Oct 17, 7:03 PM
    • 137 Posts
    • 67 Thanks
    wiseonesomeofthetime
    There is no need to do every month. Just leave the account open with £1 in it is sufficient.
    Originally posted by anselld
    That's correct, that's what I do and I've never paid a fee on the current account.
    Originally posted by EarthBoy
    £1 balance in a savings account has worked for me for the last 15 years.
    Originally posted by noh

    Oh right. Thanks all for that
    Last edited by wiseonesomeofthetime; 22-10-2017 at 7:05 PM. Reason: added thanks
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