First direct regular saver ISA

ryanheth

In order to open the First Direct regular saver ISA paying 7% I have to have a 1st account, which requires me to pay in £1500 per month in the form of a salary or wage or else I get charged £10 per month. Can I open one of these accounts just to be able to open the saver account, and then close it down once the saver is up and running? I do not want to switch from my current bank, hence not wanting to have the 1st account. Any suggestions?

alastair_h

No you have to keep the account running for 12 months to feed funds into the regular saver isa.

http://www.firstdirect.com/savings/regular-saver-isa-faqs.shtml
anything else I need to know?

For at least the first 12 months, you must hold a first direct 1st Account from which to make your monthly payments.
Within the first 12 months, the monthly Banking Fee of £10 on our 1st Account will not be waived as a result of you having a Regular Saver ISA. Thereafter, for any month in which you hold the account, you will not have to pay the Banking Fee. The fee will, of course, be waived during the first 12 months if you meet any of the other Banking Fee waiver criteria.

Calchas

It is my understanding that this product will be available for the 2009/2010 tax year.

It is ideal for people (myself included) who cannot lay their hands on 3.5k instantly.

The £10 monthly fee for the current account can be avoided purely by transferring in and out £1500 every month.

Milarky

Calchas wrote: »

The £10 monthly fee for the current account can be avoided purely by transferring in and out £1500 every month.

Or opening an 'everyday e saver' with £1?

alastair_h

Calchas wrote: »

The £10 monthly fee for the current account can be avoided purely by transferring in and out £1500 every month.

Yes that's correct, see post 6.

http://forums.moneysavingexpert.com/showthread.html?p=19864703#post19864703

Calchas

Milarky wrote: »

Or opening an 'everyday e saver' with £1?

For those who opened the current account before 2 February 2009, yes.

I don't believe this applies any longer, but would be delighted to be proven wrong as I have already opened up an everyday e-saver with £1.00.

Calchas

I am pleased to report that this account opened painlessly today.

KTF

Milarky wrote: »

Or opening an 'everyday e saver' with £1?

Sadly, not any more

Banking with first direct usually costs £10 a month, but it's free when you pay in at least £1,500 to your 1st Account each month, or maintain an average monthly 1st Account balance of £1,500 or hold a first direct mortgage (or a selected additional first direct product if your account was opened before 2 February 2009).

From: http://www.firstdirect.com/1st-account/overview.shtml

ffacoffipawb

Calchas wrote: »

I am pleased to report that this account opened painlessly today.

Ditto, 5 minutes ago.