First Direct £10 monthly banking fee (merged)

CopperPlate_2

Ah, as predicted, and as rubbished by so many...the start of charging for use of banking services has arrived. I just find it slightly ironic that the vast threads of the very same subject were poo-pooed and categoric, point-blank, outright claims were made by people who really didn't have a clue what they were actually talking about, that this would never take off.

Just goes to show doesn't it.

M_Thomson

CopperPlate wrote:

Ah, as predicted, and as rubbished by so many...the start of charging for use of banking services has arrived. I just find it slightly ironic that the vast threads of the very same subject were poo-pooed and categoric, point-blank, outright claims were made by people who really didn't have a clue what they were actually talking about, that this would never take off.

Just goes to show doesn't it.

Agree with you 100%!

Cypher

There is now a link on the current account page to a pdf which mentions the new charges.

http://www.firstdirect.com/assets/pdf/account_changes_1106.pdf
see page 22 - Bank Fee Waivers

It also says on the link that this is starting in May 07 although on the phone they have just told me it would start in February.

I have a Sole Current account and 2 joint accounts. The guy I spoke to said that as I have a credit card in my sole name I will be ok on the sole account, and with the joint accounts I also have a joint savings account so this will prevent the charges on those as well.

Basically if you have in excess of £1500 going into your current account, or you have a savings account, mortgage, credit card or some other FD product you will not be charged the £10 per month per account. If you have a joint account the further product also has to be a joint account in the same names. If its a sole name account the further product also has to be in a sole name.

First Direct said they are doing this to encourage people to take out further products. I told them it was having the reverse effect on me and that I am actually thinking of closing my accounts.

I rarely use my first direct credit card and I've just moved my eSavings to a Bradford and Bingley ISA. I've just transfered some of my FD savings account balances to an IceSave account and was about to close them, so I'm likely to start being charged unless I leave these old accounts open with a small amount in each.

CopperPlate_2

It's typical really. They only seem to want those customers who do all their banking with one institution - and one that doesn't really offer good competitive rates at that, albeit they do offer very good customer service which counts for a lot. They also want those customers to have sufficient inertia not to move accounts to a better deal and, if they do try and do better with their savings or credit card or mortgage, well, we'll just take £10 a month from you to ensure that we do make something out of your current account. Also, they are probably hoping to cash in on the "cash rich, time poor" sector which FD are apparently targetting (see the press section of their website) in that they couldn't care if it costs them a tenner a month for their account as it's just another 'expense' and not really noticed. All theorising of course.

trplumbing

Not usually one to say I told you so....

But ages ago I did say this was a certainty to come in. Want to hear another thing that I heard - being really serious now.

There are going to be no more overdraft limit fees!! Good? Well not really. What they propose to do instead is simply increase your limit without your authority (even if your rating is not very good) and then charge you for the increase if you go over your limit!! Dont have the details in full yet, but wait for it...

Anyone else heard this? It is true!

Also.... the call centre staff have NOT to promote savings a/cs to customers as this (for the time being) avoids the charge even if you dont use it!! Shows how geared towards this monthly charge the bank are!!

CopperPlate_2

Worth just posting this for the hell of it - from the revised T&C's on the FD website:


Day-To-Day Running Of Account Charges

Banking Fee

You must pay our banking fee for each month or part of a month that you hold a Bank Account or a Cheque Account unless we agree to waive the fee.

Banking Fee £10

Banking Fee Waivers

You will not have to pay the Banking Fee:

* for any month in which you:
o pay into your account* (otherwise than by internal transfer from another first direct account) a minimum of £1,500 or you maintain an average monthly balance on your account* in excess of £1,500 (month means calendar month and we will work out the average monthly balance by adding together the end of day balances for each day during the month and dividing that sum by the number of days in the month); or
o hold a first direct Mortgage, Credit Card, Personal Loan, Savings Account, firstdirectory or a first direct car or home insurance policy; or
* in relation to any second or subsequent Bank Accounts or Cheque Accounts in the same name. (If you hold a sole and a joint account, your joint account will not be considered to be in the same name as your sole account. If you hold two or more joint accounts, those accounts will not be considered to be in the same name unless all joint account holders are the same.); or
* for the first six months following account opening; or
* if your account is inactive for more than 90 days and the balance on your account is less than £10.

* Where multiple current accounts are held, account balances will be considered individually and will not be aggregated when assessing whether a fee is payable.

Tustastic

Thanks everyone for the tip-off. Have just nipped across and put a fiver in the newly empty e-Savings account that I was about to close. Next job; to find out why the xxxxxxx FD is still clutching my life savings instead of handing them over nicely to IceSave. :rolleyes:

Cypher

Also.... the call centre staff have NOT to promote savings a/cs to customers as this (for the time being) avoids the charge even if you dont use it!! Shows how geared towards this monthly charge the bank are!!

That wasn't my impression, the guy I spoke to did advise me that having a savings account would ensure the fees were waived. Infact he even said that the fees were being introduced as an incentive for people to take out further products.

anniecave

so lets get this right (it looks like this from the t's and c's above)
I can open one of their savings accounts with £5, and hence I will avoid the fees?

that's quite easy, albeit a little annoying......

belleabi0405

In many respects I can understand their want to ensure they aren't managing dormant accounts but £1500 is a little unrealistic for many giving rise to people having to make a choice, change bank or take out one of their other products. Maybe they are urging us all to save money?!?!? I don't think so, it's yet another attempt to lure us into taking out credit cards or loans which ultimately benefit only those offering them and whilst First Direct do offer a great service (imho), £10 a month is excessive. I'm fortunate (I guess) in that I have a credit card which I use for day to day expenses and pay off each month but it's certainly left a bad taste in my mouth. Now where's the forum on best current accounts....might just have a peek.