First Direct to launch 6.25% mini cash ISA

According to Money Mail (Wed 9th Feb 2005), First Direct will launch its internet-based cash mini E-Isa at 6.25% later this month.

Although, this rate is only payable for 8 months. After that your money will earn the variable rate payable on its existing telephone accounts - which is currently an uncompetitive 4.5%.

You can find a link to the story here.
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Replies

  • Excellant !

    Little details yet, but looks good for a transfer in and then out after 8 months, Say a £10k ISA against a 5.4% available rate and taking off 8 days for the transfers would result in a net benefit of about £45 extra interest.
  • Great link

    The article warns about the transfer fee on the A&L isa which is good.

    But I just discovered from that article that my portman ISA has a similar fee (£30). I fell for that when I was a little less wise!

    The first direct option looks good but I am a little reticent about transfering ISAs so often
  • isasmurfisasmurf Forumite
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    It's a good headline rate, but I think we need to hold back and wait for the T&C. It's a lot higher then anything else on offer and its unlike FD to offer such a high rate of interest. Remember that their e-savings account will not pay interest in any month where a withdrawal is made. I suspect there will be a similar condition on this for there to be such a high interest rate.
  • blinkoblinko Forumite
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    oh how im kicking myself that i didnt take advantage of NR 6 percenter :(
  • Aaahhh the 6% fixed for 4 years.... a nice little earner :)
  • Caped_AvengerCaped_Avenger Forumite
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    isasmurf wrote:
    It's a good headline rate, but I think we need to hold back and wait for the T&C. It's a lot higher then anything else on offer and its unlike FD to offer such a high rate of interest. Remember that their e-savings account will not pay interest in any month where a withdrawal is made. I suspect there will be a similar condition on this for there to be such a high interest rate.
    The main "restriction" will be that you will not be able to operate it over the phone, it will have similar T&Cs to the fd e-savings account in that respect. Plus it's just an intro offer for a few months.

    Oh, BTW, the 4.5% that was quoted in the original post for the standard fd cash ISA is incorrect, it's currently 4.35% AER, 4.28% p.a.
  • blinkoblinko Forumite
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    Aaahhh the 6% fixed for 4 years.... a nice little earner
    i went in there got application forms and came back the next day to hand them in and they had withdrawn the product from the market ! one can only imagine how un happy i was at that moment.

    and in my fury i ended up taking out a 4 year fixed 5.6% bond which seems like a decent idea now but to miss it by a day :(
  • monki_manmonki_man Forumite
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    oh no, I've only just joined the abbey one as I thouught it was the highest rate ISA out there (postal isa).
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  • isasmurfisasmurf Forumite
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    The main "restriction" will be that you will not be able to operate it over the phone, it will have similar T&Cs to the fd e-savings account in that respect. Plus it's just an intro offer for a few months.

    Oh, BTW, the 4.5% that was quoted in the original post for the standard fd cash ISA is incorrect, it's currently 4.35% AER, 4.28% p.a.

    Hmm, inside knowledge Caped Avenger? You seem to know a bit about it and are located in the same City as FD... any heads up to it's launch date?.. or does 2+2=5 and you have nothing to do with FD.
  • I phoned first direct and asked them outright - apparently the 6.25% will be available from Monday. Probably best to fill yer boots in case they have to close it early (like some other places did last year)...
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