Avoid First Direct - They are gonna charge all customers £10!

SparciaM

I was going to switch to First Direct for the £50, but think I'll wait now. I currently bank with smile and their internet banking is cool. I have acess 24/7, speak to real people in the UK all the time AND they have an 0161 number for their call centre - if you go to https://www.saynoto0870.com

Remember though most other countries charge for banking - such as the US where you have to pay for transfers, cheques etc. BUT they have better service because of this!! I think we're gonna go down that route, but remember that Nationwide will probably be the LAST bank to introduce a charge!

emc

ihatepasswords wrote:

I've followed this post for a while with interest and I'm quite surprised that people are actually closing their accounts based on a rumoured charge that isn't supposed to come into affect until next year anyway.

If I were a customer of theirs I'd wait until confirmation from the horses mouth before doing anything, even if they do charge people they have to give a good period of notice.

The rumours are true, which is why I'm not bothering with moving to them, but I agree that existing customers should stay until the charges start. Prepare for the move, but don't close your account unless the bank you move to provides a better product now.

Their proposed combined premium type of account with a monthly £10 charge is nothing new. Such accounts are available at all of the big banks.

Most of their customers will just move to the similar competitive banks like Smile.

The danger is that if their new account is a success, then the other online banks will follow, and goodbye free banking.

robublind

How do you know I am not giving the whole picture? Do you know something I don't? If so speak up we are all ears. Maybe you are an FD employee or are you just blowing hot air?

On you previous post on GREED. Saving for your own security and retirement is not greedy. Former HSBC Chairman got £1.3M salary a rise of 597% over the past 6 years. Wonder if the staff got the same percentage rise over past 6 years too? Me thinks not

I wonder who this charge will affect the most? Little old lady from a deprived area of Manchester with £100 in savings account living off her pension or the city financier living in a £800,000 house in Hampstead earing £100K a year. You don't need to be Sherlock Holmes to work that one out.

kimber_surprise wrote:

Maybe you could ask your wife for more information as you're not giving the whole picture.

Assuming the rumour is true then it wouldn't be fair to expect staff to have to pay £10 a month as they are obliged to have FD accounts to get their salaries paid into.

I know this as my long-lost cousins pet tarantula once telephoned them so it must be true.

:rotfl:

Paul_Herring

emc wrote:

Most of their customers will just move to the similar competitive banks like Smile.

I disagree. Most people will just sit there and take it. Most people change their spouses more often than they change their banks.

(Most of the people who use these boards however will move.)

thefullstory

I have been following this thread with interest over the last few days and felt the need to clarify a few points. First off I would like to make clear my disappointment at my colleagues who leaked a deliberately incomplete version of the charging plans. It strikes me that working at fd is not these peoples main income as by scaremongering in such a way they are putting the company's future in danger and as a result staff like me for whom this is their livelihood's job at risk.

Firstly the essence of the story is correct we will begin charging £10 a month as of January next year. However this is very much going to be part of a rewards based scheme and the figures given to staff show that it is going to lead to most of our customers being given back more than £10 each month as part of a cash rewards package. Yes there will be those for whom the rewards are a few pounds less than the fee and these customers are going to be faced with a direct choice - leave first direct or perhaps look to bring another aspect of your banking over. Understandably some for who we are not a main bank will leave but this will mean better service for those who remain.

The essence of the charge is most fd customers will soon be PAID to have an account with us - so before you listen to the panic merchants and jump ship wait for the official announcement. I as a staff member have the option of opting out of the fee but I dont intend to as I have a current account, isa and esavings and from the initial figures it looks like Im going to benefit from this. Many of you will more than likely be the same.

EagerLearner

Thanks thefullstory - it really comes down to what will be on offer, as you say. I'm prepared to wait but as someone who has a current account, credit card and joint account with you, I doubt whether I will be considered 'valuable' enough for the deal to work. I transfered my ISA away from FD 3 months ago as was not competitive - I may transfer it back if rates change or I'd benefit with the new 'package'.

Is there any chance you could give us an idea of the 'initial figures' you mention to reassure us in the interim?

thefullstory

If your salary is going through the account you are more than likely to be slightly better off, I was on a training course last week where some very much provisional figures were given to staff but I've no intention of going into specifics and would urge colleagues on this board to do the same as competitors would no doubt be delighted to get a look at the information early.

Two other points I forgot to mention, all overdraft fees will be halfed and poor credit customers who may struggle to get accounts elsewhere will be exempt from the charge but also from the rewards.

EagerLearner

Thanks thefullstory - I would be putting salary in and completely understand re competitors. Will we know more early September - any dates in mind? I know A&L are launching their new current account @ 6% then, so hopefully FD plan to compete more seriously with the current high-earning current accounts available these days.

Will this apply to Joint and current accounts - ie: will we end up paying £20 a month = £240 per year?

thefullstory

Cant remember the exact date and I've left my documents in work (day off today happily). With regards to the charge its ten pounds regardless of how many accounts. One thing I would say when the news breaks there will undoubtedly be a massive amount of customers needing more information so be warned over the next few months when you call you may need to wait in a queue like you do with other banks.

nbbradshaw

thefullstory, Thanks for the update.

However, I'm still jumping to A&L simply because FD has paid a poultry amount of interest on my current account, same on the savings account (unless it' got wads of money in), keeps sending junk mail offering pre-authorised loans or "we've got the best mortgage deal going..."( which IMHO they have not). So unless FD are going to pay me over £100 per annumn to bank with them, then there's no reason to stay.