First Direct or Lloyds TSB

J3OEF

im looking at moving from A&L (santander system) to either First Direct or Lloyds TSB.

Currently have an Overdraft with A&L set at £100 and have used it last month i think was the first time, ended up paying £5 rathern then other amounts ive seen quoted from other banks which is good.

I like the idea of the Grace period with Lloyds but im sure this is irrellevant if i was to arrange an overdraft with them.

First Direct i keep going back to but am i right in saying you MUST credit it every month with £1500 or is it just £1500 over 3 months?

I get basic around £1200 pm but with overtime sometimes its well above £1500 but i cant guarentee on that.

I am also looking at opening a joint savings account with my partner where we are looking to stick away £600 or more pm for about 10-12 months.

anyone able to advise/answer the above points would be grateful.

Also are both the above banks "instant transfers online" actually instant unlike alliance and leicester who seem no longer to be instant.

blueberrypie

First Direct is renowned for good service, and I have to say I'd recommend them. The fee is waived if you credit £1500/month, as you say, but it's also waived if you have various other products with them, including a savings account - so just open a savings account and leave £1 in it :-)

If you need branches regularly, FD might not be your best option. You can pay in/withdraw at HSBC branches though.

Yes, both FD and LTSB do faster payments and instant transfers. FD probably has a better record on that one, but LTSB seems reliable these days.

If your credit rating is good, you will probably also get an overdraft with FD, and if you do, the first £250 of it is interest-free. And if you look for a referral or an offer, you can get a joining bonus of £100.

The market isn't very good for savings right now, but there's a MSE article at http://www.moneysavingexpert.com/savings/savings-accounts-best-interest which provides info on some of the better accounts. You could look at ISAs too - although they're intended for long-term savings, the rates are probably better than standard savings accounts right now. Bear in mind that with an ISA the interest is paid gross - with an ordinary savings account, there'll be income tax deducted from your interest. The other thing to remember about an ISA is that it can only be in one name, not a joint account.

J3OEF

Many thanks for the detailed reply

So, in theory i can open up a current account with FD, and considering i want to save aswell, i can open up a savings account alongside it meaning i dont have to pay a £10 fee and i dont have to always credit £1500 a month into it? would they recognize this when i sign up online or would i need to ring them to let them know etc?

stephane_2

For you not be charged the £10 monthly fee you must either have a minimum of £1500 coming into the account each months or if not have one of their product (saving account, insurance, credit card...etc)....
I highly recommend them, excellent customer care, extremely efficient, really no hassle....but as long as you don't get into trouble and like any other bank...it's a business!

blueberrypie

J3OEF wrote: »

Many thanks for the detailed reply

So, in theory i can open up a current account with FD, and considering i want to save aswell, i can open up a savings account alongside it meaning i dont have to pay a £10 fee and i dont have to always credit £1500 a month into it? would they recognize this when i sign up online or would i need to ring them to let them know etc?

I opened the current account and then once on-line banking was set up, I opened the savings account. That seems the easiest way to go.

EarthBoy

No, you don't need to let them know; they will see it for themselves if you open a savings account at the same time, or straight after you open the current account. I only credit about £600 per month, but I have never been charged a fee because I have a couple of savings accounts and a credit card with them.

The savings rates are rubbish for lump sums, but the regular savings account is good at 5% for 12 months. You can't make any withdrawals, but you can vary the monthly amount. The regular saver doesn't count for waiving the £10 monthly fee though, so you will need another savings account as well, i.e. the everyday e-saver, but you can put £1.00 in and leave it there. Or take out their credit card instead of, or as well as the everyday e-saver.

onlypaddy

First Direct or Lloyds TSB? If you can get the FD account, its a no brainer. FD all the way!

Fiddlestick

onlypaddy wrote: »

First Direct or Lloyds TSB? If you can get the FD account, its a no brainer. FD all the way!

Having moved from LloydsTSB to FD recently, I can wholeheartedly recommend FD.

The only minor niggle is that I don't really like their online banking. It's adequate for getting things done, but it feels a little clunky and it's not as slick as the offering from Lloyds.

Just my 2c worth

J3OEF

Well, all i need online banking for is to check my balance of course and send the odd payments instantly to people. does anyone know if i have a FD account and transfer money instantly to say my mum who banks with Halifax, will it be INSTANT and no a day or 2.

Finally,

what savings account will i need to open so i dont have to pay the £10 fee or credit £1500 per month. I am looking to save but want easy access as we are saving for a wedding so as time does on we will need to pay for things etc, is this possible with FD? if not ill just open the account and leave £1 in as someone suggested.

Thanks

blueberrypie

J3OEF wrote: »

Well, all i need online banking for is to check my balance of course and send the odd payments instantly to people. does anyone know if i have a FD account and transfer money instantly to say my mum who banks with Halifax, will it be INSTANT and no a day or 2.

FD is very reliable for FPs, so I wouldn't expect any problems with that.

Finally,

what savings account will i need to open so i dont have to pay the £10 fee or credit £1500 per month. I am looking to save but want easy access as we are saving for a wedding so as time does on we will need to pay for things etc, is this possible with FD? if not ill just open the account and leave £1 in as someone suggested.

The FD savings products (apart from the Regular Saver, which isn't suited for what you want) aren't great. Have a look at the link I posted earlier and choose a better option from that.

J3OEF

blueberrypie wrote: »

FD is very reliable for FPs, so I wouldn't expect any problems with that.

this is good, an option which is a must and since alliance and leicester stopped this process, they have lost my interest

The FD savings products (apart from the Regular Saver, which isn't suited for what you want) aren't great. Have a look at the link I posted earlier and choose a better option from that.

Ive just signed up for my first account along with the every day e saver which i understand is the one needed to avoid any monthly fee for the account, ill stick £1 in it and look elsewhere for a savings account. I understand the Lloyds Vantage one is quite good and pays 4% or so