First Direct Regular Saver 8%

typistretired

Vortigern wrote: »

Before your regular saver matures you should ensure that you have an everyday e-saver account open in the same name (not joint names) as the regular saver. Don't put any more than a pound in there - the interest rate is very low. When the reg saver matures, the balance will transfer immediately to the e-saver and you can start another reg saver. Transfer cash from e-saver to current account (leaving £1 in the e-saver for next year) - then onward by FP to wherever you wish.

The everyday e-saver account on our account is in joint names not sure you are allowed to open another. Next time I speak to them I will check if I can close the joint one and open separate everyday e-saver. I do have a single esaver which is now closed to new savers but somehow they never pay into that on maturity.

User1234

I'd like to take advantage of this offer, but I'm also looking to transfer my main banking away from Natwest to a bank account offering more interest. It seems that First Direct's 1st Account is a good option. Could anyone here elaborate on the best way to get both of these for a new customer? I suspect I could apply for a 1st Account (sole account) online and use their EasySwitch to move over my direct debits, standing orders, etc, then ensure my workplace are paying into that account. After this account is open, can I apply for the Regular Saver account and it will be automatically deducted from the 1st Account each month?

Vortigern

User1234 wrote: »

... a bank account offering more interest. It seems that First Direct's 1st Account is a good option.

It is, but First Direct does not pay interest on current accounts.

After this account is open, can I apply for the Regular Saver account and it will be automatically deducted from the 1st Account each month?

Yes, you can and it will.

emuzeg

So it's 8% but net 6.4% (if I remember correctly). Still very good though!

Gromitt

8% on 300 over 12 months is £156 net (£125 gross for 20% tax payers), so it's definitely 8% net.

6.4% would be gross after talking into account the 20% Tax, not net.


A quick spreadsheet confirms:
Month 1 300
Month 2 604
Month 3 910.03
Month 4 1218.09
Month 5 1528.21
Month 6 1840.4
Month 7 2154.67
Month 8 2471.04
Month 9 2789.51
Month 10 3110.11
Month 11 3432.84
Month 12 3757.73

300*12 3600
Balance 3757.73
Interest 157.73
Tax 20.00%
Interest Net 126.18

emuzeg

Gromitt wrote: »

8% on 300 over 12 months is £156 net (£125 gross for 20% tax payers), so it's definitely 8% net.

6.4% would be gross after talking into account the 20% Tax, not net.


A quick spreadsheet confirms:
Month 1 300
Month 2 604
Month 3 910.03
Month 4 1218.09
Month 5 1528.21
Month 6 1840.4
Month 7 2154.67
Month 8 2471.04
Month 9 2789.51
Month 10 3110.11
Month 11 3432.84
Month 12 3757.73

300*12 3600
Balance 3757.73
Interest 157.73
Tax 20.00%
Interest Net 126.18

But I wouldn't have to pay that tax since I am a student and earn less than £7475 per year? Can I ring FD to tell them that or do I need to post them an R85?

The_Pixi

emuzeg wrote: »

But I wouldn't have to pay that tax since I am a student and earn less than £7475 per year? Can I ring FD to tell them that or do I need to post them an R85?

I suspect with that income you wouldn't qualify for a 1st account, which I think you need in order to access the savings accounts.

Gromitt

emuzeg wrote: »

But I wouldn't have to pay that tax since I am a student and earn less than £7475 per year? Can I ring FD to tell them that or do I need to post them an R85?

If you already have a First Account then yes, you can send an R85.

Otherwise, you may not qualify for the First Account, which you need to setup the Regular Saver.

emuzeg

Gromitt wrote: »

If you already have a First Account then yes, you can send an R85.

Otherwise, you may not qualify for the First Account, which you need to setup the Regular Saver.

I already have my 1st account, put in the application my wages of last job which I had yet to receive all the wages from. Will start a new job next month. Mind you, the wages were still only part time and still only came to less £7475 per year - still got accepted, even with a £500 overdraft on my debit card!

He asked me over the phone why I am joining and I said because a family member has used you for years and is really happy with your service, so I said I'd eventually want to switch over to FD totally. He said 'wonderful'

So I ordered 2 R85 forms from the HMRC website, how long should they take to arrive? Where else can I get them?

thacky

So I ordered 2 R85 forms from the HMRC website, how long should they take to arrive? Where else can I get them?[/QUOTE]

You can just print them off

http://www.hmrc.gov.uk/forms/r85.pdf