First Direct Customers - Staying or going?

Musicman

Changed to another bank

We are changing our account, as it would appear that I am OK on our joint account, but my wife who only has the joint account will be charged the fee. I think this is unfair, as it costs FD no more to handle our joint account, but they are penalising us due to her only having one product. To me this fee is on a per person basis and not on a per account.

northern_monkey_4

Update Note: Now read Martin's full
"How to beat the new charges" article

When I joined First Direct 5 years ago, I thought they were a bank that actually cared about their customers.
Well today's announcement shows their true colours.
Whilst the charges do not apply to me personally, I will be switching away my mortgage and all my accounts for the following reasons:

(1) They want to get their hands on all the money in dormant accounts, before the government gets it's act together and works out how to leverage it from the banks and what it would be best spent on. This is not First Direct's money, and should go to a good cause such as fighting world poverty.

(2) This is purely discrimination based on wealth, and will affect those least able to afford it in society, something I am dead against.

(3) The only way to change society is to get up off your butt and stand up and be counted for what is right.

(4) Send a message to FD and the other banks that customers will vote with their feet (and their money !!)

I'm off to the Co-op bank, a bank demonstrates its commitment to ethical trading and policies.

I advise you to do the same, and am interested in your views.

billytruffin

Staying with FD

I really don't see what all the fuss is about! Everyone knows that First Direct offer by far the best customer service (call centres and online banking etc) by far than any other UK Bank.

You don't need to keep £1500 in your account each month, or even pay in £1500 a month! Just open a savings account with them - probably takes five minutes - stick a quid in and you don't have to pay the charges!

How to avoid the charge

Taken from Martin's article on here

Of course while I may be a rate purist, I do appreciate that many are fond of First Direct's service, and rather than giving it the bloody nose of leaving, would like to stay and avoid the charge. In fact it's not that difficult to do. Firstly anyone earning over £24,000, or constantly with a very healthy balance will be fine any way.

More interestingly, even if not there's a loophole for the rest. Holders of other First Direct products are exempt from paying the monthly fee regardless and this includes its credit card and savings accounts.

And while these aren't market leading, both of these can easily be set up, purely to make your current account fees free. Though it has to be said, by next February First Direct may shut down this loophole, (if it does I'll include it in the weekly e-mail). This is how to set up the products to avoid the fee in each case:

Saving account. It's e-savings instant access savings account pays a very average 4.75%, there are far better options out there (see Instant Access Savings article). Yet, as all you need do is simply deposit £1 and can then leave it there, this will avoid you the hefty £120 charge.


Credit Card. Similarly, its credit card won't trouble the best buy tables. Yet apply and open one, pop it in a drawer, forget about it and it'll also save you the fee. However, taking this route will have a bigger impact on your credit rating, so I'd be tempted to stick with the savings account route.

Cypher

Thinking about changing bank

jamesw2000 wrote:

You don't need to keep £1500 in your account each month, or even pay in £1500 a month! Just open a savings account with them - probably takes five minutes - stick a quid in and you don't have to pay the charges!

First Direct have said they are mainly doing this to get people to close dormant accounts, so how long do you think they will keep allowing people to have effectively a second dormant account with just £1 savings on deposit.

The savings loophole just makes a mockery of it all, and I'm sure they will later adjust the terms to suit.

gt94sss2

northern_monkey wrote:

(1) They want to get their hands on all the money in dormant accounts, before the government gets it's act together and works out how to leverage it from the banks and what it would be best spent on. This is not First Direct's money, and should go to a good cause such as fighting world poverty.

Actually the money in dormant accounts belongs to those customers who put it there - not the bank and not the government...

Regards
Sunil

janthemum

Staying with FD

My OH and I have spoken long abd hard about this today as made the move to FR in July after being with the Th****ng for 20yrs without questioing any thing they did (help I am about to into a Halifax rant.....)
We have been so impressed with FD.
I called them yesterday as my income falls well short of the 15K but said for the moment should be OK as have an E savings acct but advised me to put at leasdt something into it!
He said he could not vouch for the future though and like other contributors here suggesyted a CC. Which I hadnt wanted as the temptation I find very hard to deal with.
But for the positives their CS are fab. They answer the phone in about 3 rings and sound happy and tell me their name. I get so frustrated with other Banks etc where it is all automated and pres s this number pres that number then you are lucky if after an hour you speak to a robot in some far off land.

So yes FD for me even if I get £10 fee. I will economise elsewhere. Cycle more not drive get fitter and save the planet all because of the £10 charge;)

Scarlet_Fever

Thinking about changing bank

i'm going - its like the farepak thing, the people that can least afford to lose it get screwed over AGAIN (and no, i'm not one of them - i'm a very lucky person in a job that pays more than my age! - but i still think it sucks)

rjm67

Thinking about changing bank

FD are going to lose a lot of valuable customers with this approach. Whilst I accept that it's fairly easy to get around the fee, surely having loads of people with savings accounts with only a few quid in them means that they're going to have thousands more accounts with small amounts in them that they have to manage. If they really wanted to weed out dormant accounts and get customers to buy into more accounts / products with them then they should have probably only set the fee on current accounts with no regular payment into them at all, and offered some incentive on savings interest rates, or reduced bank charges if you take out multiple products. I think that this is the first time FD have got something seriously wrong in my mind (and I've been with them since the start virtually), I only hope they don't regret it in the long run. I will see how this pans out before deciding whether to stay with them or not.

Ariadne_3

Thinking about changing bank

I'm considering moving my husband's and my joint account. At the moment I have a Nationwide current account, and he has an HSBC current account (although we're considering changing- in fact I've already started the application process for an A&L Premier Direct acc for me, possibly for both depending on how it goes).

We pay in approx £2k each month and have a balance of around £4k, so I know we meet the criteria, but it's the principle of the thing.

I'm in the process of seriously sorting out where our money is, so that £4k current balance will NOT be the same wherever we decide to go, we're going to be going with a proper savings account!

Never had a problem with FD, but I am am going to persuade my husband to move banks with the joint account because I think it's abysmal that they are introducing these charges

DontDoDebtKids

Changed to another bank

I think this fee is completely wrong on many levels.

My main gripe is this: what exactly do you get for your £10 a month?

Answer: a pretty rubbish current account.

Solution: Dump it. I've moved to A&L.