First Direct Savings Account

kate_raven_smith

Hey Guys

I am looking at opening a Savings Account (with the highest interest rates) I currently have an ISA with First Direct but have almost used up my yearly amount.

I am looking at First Direct Savings Account- Here are the details:

5.00% AER/gross fixed for 12 months


Our Regular Saver could be perfect if you don't have a lump sum to invest but want to save on a regular basis - start by saving between £25 and £300 in the first month, then make regular payments every month for the next 11 months, by standing order only from your 1st Account, of at least £25 up to the maximum monthly balance, which starts at £300 in month one and increases by £300 each month thereafter. For example, if you save the full £300 per month for 12 months you would receive approximately £97 gross (£78 net) in interest at the end of 12 months.

During the first 12 months

• 5.00% AER/gross fixed for 12 months
• start saving between £25 and £300 in the first month from your 1st Account
• then make regular payments every month for the next 11 months, by standing order only, of at least £25 up to the maximum monthly balance, which starts at £300 in month 1. The maximum balance increases by £300 each month thereafter.
• change your payment amount any time to suit your circumstances - you can pay in £5 increments from £25, providing your monthly balance doesn't exceed the 'maximum monthly balance'
• no partial withdrawals are permitted in the first 12 months. If you need to access your money, in the initial 12 months you can close the account, but you will only receive interest at our standard variable Savings Account rate for the period your Regular Saver was open.
• savings can only be paid by standing order from your first direct 1st Account for 12 months

Does anyone know of a better one... As in fairness I would want to save more than £300 per month, but am thinking of using this one (because of the high interest rate) and then opening another... Any advice would be appreciated

Thanks

Katie

C_Mababejive

Just be aware that you wont get 5% for the full amount for 12 months.

The headline rate is slightly misleading.

kate_raven_smith

What because you can only pay in £300 per month effectively? So it will be a building balance and therefore a building interest? It states on the site that the maximum amount of interest if you pay in £300 per month is £97 gross- Does anyone know of any better savings accounts for excess money- Access is not important

Thanks C_Mababejive

Milarky

Grab it while you can. A nice feature of the account is the ability to catch up if you haven't paid in £300 every month (eg an extra £300 for one month after 6x £250) The slight downsides to this account are

-Standing order is only method of deposit.

-Must be from First Direct (which may not be your 'main' account)

-Dates cannot be varied

-SO method means payments go back until a working day if 'due' on a weekend.

-Must contact First Direct to request any variation in SO amount.

Biggles

Just keep an eye on the Regular Saver thread for the current best deals:-

https://forums.moneysavingexpert.com/discussion/608697

kate_raven_smith

Thanks for all your info... Especially Milarky... very helpful.
As I already have a 1st Account anyway... Most of those 'cons' dont apply so am going to go for it

Thanks again

Katie