First Direct Everyday E-saver

nobby24

When I joined FD six months ago it was paying 4.75%, I've just been informed the interest rate is now less than 1%!! How do they expect to keep any savers. I've already moved most of my money to a Saga account, looks like I'll be moving the rest soon.

dlk

Current everyday e savings rate is now 1.25% after the most recent base rate reduction so not sure how that is under 1%?!

6 months ago base rate was at 5% so the rate has simply reduced in line with the base rate as it's still 0.25% below base.

They aren't in a position where they need to offer loss making savings as unlike some of the banks offering the best rates at the moment they aren't having the same cash flow issues. HSBC still hold more savings than they have leant out (only UK bank in that position) so I can't envisage the savings rates getting any better I'm afraid (Hence why they have some of the best mortgages too).

nobby24

Yes, the website is still showing 1.25% but it hasn't been updated yet. I think if you check later or tomorrow you'll see the new less than 1% rate.

soulsaver

You may well be talking about the same account, but note there is an 'e-saver' & an 'everyday e-saver'. The 'everyday' pays a lower rate for penalty free withdrawals - you lose interest in the month of withdrawal on the e-saver...

Doomcow

yawn, give us another topic pls.

we all know rates are mega sucky but will go up again.

its not like you are the only one in this position.

sorry about being so blunt, but accept crap rates for stability and rates will, in the long term, resort to more favourable levels when you have a lump sum to invest.

nobby24

Oh Sorry DoomCow I thought this was the Savings and Investments section, thanks for selecting my thread.

btw I had 35k in the esaver when I was getting 4.75%, most of which I've moved to a Saga account.

I also have 50k in a Skipton BS bond getting 6%.

+ a cash isa and a FD regular saver 7%

My mortgage will be paid off in 3 years and I have a final salary pension with 35 years service.

I just wonder how FD expect to keep savers with the rates they offer now.