First Direct Regular Saver 8%

Twopints

Re this bit:

Sole account holders only. Only one account per person

I have joint current accounts and a sole (empty!) savings account - do you think I will qualify?

Empty_pockets

Thanks Snowman, good answer.

I suppose these things don't really start to ramp up interest until you're two or three years in.

£93 is not bad..but then it's not a right lot either.

SnowMan

Empty_pockets wrote: »

Thanks Snowman, good answer.

I suppose these things don't really start to ramp up interest until you're two or three years in.

£93 is not bad..but then it's not a right lot either.

Should have said I would think carefully before moving money from an ISA to this account.

If you use up your ISA allowance in future years (or the ISA higher rate relief on interest is removed for future year subscriptions) then you have lost the opportunity to keep this money in a tax free environment in future years.

Any gain you make this year might be more than lost by this loss of ISA interest tax relief in future years.

pfpf

existing current account holders only?

if i were to open a current account and get accepted do i have to do anything other than fund with £1500.00pm to get the £100.00 opening account bonus?

do i have to actually use their "account transfer system"?

thank you.

p.s how long after acceptance do you have account details to enable opening of one of these regular savers?

kemo_2002

Hi, i would also like to no the above as i am not a first acc customer.

Is there a best time to open the acc - i read on another thread if you open at end of month and have SO for 30th then one for the 1st of following month you get 12months interest on £600 rather than £300, is that correct?

Also, im not great with figures, im a non tax payer so what kind of return would this get me if i paid in the full 300 pm?


thanks

apt

You would get around £156 gross. The date you open the account makes next to no difference as subsequent payments have to be on the monthly anniversary of the account opening.

Milarky

Well they've now done this for me over the phone. My account was opened on 28th August. I estimate I would have earned £7.88 @ 5% to date. So they now will pay just 8p (@ 0.05%) of this! - a loss of £7.80

But the available interest will have leapt from £97.50 to £156 (@£300 per month) That's like receiving £148.20 (net) - or a rate of 7.6%

Or (in old fashioned 'profit/loss' terms) it's about +£50 for making a phone call...

kemo_2002

do you have to set up a current acc first with them?

Meadows

I have only had my account 4 months that is annoying, so now do I close it and re open the new one. Need to have a think on this one.

Milarky

Here are some month-by-month estimates of the effect of early closure of an existing Regular Saver account

Assumptions: Equal payments of £300 (max) to date
The 'profit' allows for receiving the benefit of 5% on your previous savings eventually (i.e in one year's time)

HOWEVER: You could only reinvest £300 pcm @8% going forward, so there is also an 'opportunity' cost which is especially great if you have 'many' months to keep safe in the meantime. Assuming the best 'feed-in' rate was 3% instant access - that's a 2% (below the old 5%) per annum difference which compounds the loss/reduces the final profit.

By 8 months in/4 to go there really is no point in swapping UNLESS you have a current use for some of this built up money...


Months ago opened: 1
Interest earned to date: £1.25
Interest 'lost': £1.24
Low 'feed in' reduction: NIL
Profit/loss: £57.26 (G) £45.80 (BR) £34.36 (HR)

Months ago opened: 2
Interest earned to date: £3.75
Interest 'lost': £3.71
Low 'feed in' reduction: £0.50
Profit/loss: £54.29 (G) £43.43 (BR) £32.57 (HR)

Months ago opened: 3
Interest earned to date: £7.50
Interest 'lost': £7.42
Low 'feed in' reduction: £1.50
Profit/loss: £49.58 (G) £39.66 (BR) £29.75 (HR)

Months ago opened: 4
Interest earned to date: £12.50
Interest 'lost' £12.37
Low 'feed in' reduction: £3.00
Profit/loss: £43.13 (G) £34.50 (BR) £25.88 (HR)

Months ago opened: 5
Interest earned to date: £18.75
Interest 'lost' £18.56
Low 'feed in' reduction: £5.00
Profit/loss: £34.94 (G) £27.95 (BR) £20.96 (HR)

Months ago opened: 6
Interest earned to date: £26.25
Interest 'lost' £25.99
Low 'feed in' reduction: £7.50
Profit/loss: £23.31 (G) £18.65 (BR) £13.99 (HR)

Months ago opened: 7
Interest earned to date: £35.00
Interest 'lost' £34.65
Low 'feed in' reduction: £10.50
Profit/loss: £11.65 (G) £9.32 (BR) £6.99 (HR)

Months ago opened: 8
Interest earned to date: £45.00
Interest 'lost' £44.55
Low 'feed in' reduction: £14.00
Profit/loss: £- (G) £- (BR) £- (HR)