First Direct Fees: How to Avoid 'Em or Ditch 'Em Discussion Area

LesD

I can't understand why so many people seem to be surprised by FD's pricing action. Having lost income from the fees charged to people in debt who couldn't manage their finances properly, they have now decided to charge for basic banking services.

We all knew (well, most of us anyway) this would be the result.

I wouldn't bother moving accounts. The other banks will jump on the bandwagon soon too.

I see there's also a move afoot to charge a fixed fee for credit cards too. So, even those of us who pay off monthly will bear that cost.

So, a BIG thanks to the do-gooders who lobbied for the reduction in the debt fees!

laserboy_2

Well, for the first time since I opened my account in the early nineties, the new charges have made me consider moving my current account away from First Direct.
Notice I said "Consider." I guess I'm fortunate that the fees don't apply to me as I have two other products and pay in more than the requisite amount each month. If I had to pay the fee I'd be off like a shot, but I'd be very disappointed.
As others have said, FD's customer service is brilliant. Every request I've made has been done promptly and without errors. Unlike other banks I can think of. One even sent me a cheque book with my surname spelt wrong (my surname has only four letters; I don't regard 25% incorrect as acceptable).
Also, the web service is brilliant, and means I can move money from my savings a/c to my current a/c instantly. No its not the best interest rate (I also have an ICICI a/c for that), but by keeping mimimum funds in current a/c and transferring in as required from FD savings I get a couple of quid interest each month.
Even exceptional service is not worth £10pm.

That said excellent service should be the rule, not the exception. On the basis that the service remains excellent I would still recommend FD, but with the caveat that the potential customer should go elsewhere if they would end up paying for the privelege of banking with FD.

CopperPlate_2

allan2006 wrote:

i think if you go through the saving account option to avoid the fees, you must credit so much into the savings account each month.

Its a bank i dont think they will let you off 10 quid a month by just leaving a quid in an account.

if anyone has any more info as im in the same position, but we got till the end of january to close our accounts if necessary!

ive got a doormant nationwide flexaccount i am thinking of moving everything back to that, anyone know how that account compares to others?

That is just supposition - there's been a lot of talk about so called minimum transfer amounts to savings accounts, but it's untested as yet as the fee hasn't obviously been introduced yet. I think they couldn't complain if you transferred £10 a month into a savings account - many regular saver accounts specify this as the minimum and the fd accounts have no such minimum level. Nothing stopping you transferring it back after a couple of months or so and starting the process again.

number1johnw@hotmail.com

I took steps to close my First Direct account, they were on the 'phone straightaway to tell me that as I bought travel insurance from them that I would be exempt from the charge, however I had already started to look around and found out that for £10 per month Smile have an account which gives free travel insurance and car breakdown, plus better interest as well. So I've closed my FD account and cancelled my travel insurance, my wife and sister will do the same too. Clearly the other banks will watch FD's move with interest and so it's important to clearly let them know what we think - I can do a lot with the £120 they were planning to take off me!

aiwah

Just got my letter from FD and it was as reassuring as the lovely lady who answered the phone when we rang initially to just query the charges. I've been with them since I started working and have had nothing but good service from them so far - even when you ring them at 1am when you've realised you've forgotten to pay a bill, so my husband and I have taken out extra services required (as we don't meet the minimum limits) over time and therefore avoided the fee.

Saving money is all good and well, but sometimes you have to weigh up all the intangible benefits, such as access and consistency. A little extra hassle to take up an extra service isn't too much for me if it means I don't have to deal with stroppy cashiers or call centre staff.

catnatlady

seven-day-weekend wrote:

I closed my First Direct account yesterday and took my £46 elsewhere.

Following Martin's advice, I called First Direct to close my account, and was informed that I didn't have an account! When I insisted that I did, I was told that my account was dormant and had therefore been moved into the 'dormant accounts'! I asked what has happened to the money I have in there, and was told that it was being held in their 'dormant account'!

I pointed out that I had previously received a letter asking me if I wanted to keep my account open, or close it and they'd send me a cheque. I phoned up to say that I wanted to keep it open. I was told that the call had never been logged. Annoyed by their attitude, I pointed out that, if I had not called to close the account, they would have just kept my money and not added interest. They said yes. I requested a cheque to close the account, and received it yesterday. I only opened the account following Martin's tip that I would get £25 free for doing so. They subsequently made deductions from it for 'text messages' which I neither requested nor received.

FD_EMPLOYEE

Would anyone like me to explain further on this matter?

creddish

FD_EMPLOYEE wrote:

Would anyone like me to explain further on this matter?

Well it would be interesting to know why they have done it. Their reputation will suffer greatly as a result I'm sure. Anyone wishing to avoid the charge who does not already qualify merely has to open a savings account with a £1 deposit. So no benefit to FD from that. Many others will move elsewhere as a matter of principle. Others will consider it and find they can get better rates elsewhere so they will move. Dormant accounts will presumably remain dormant so will not suffer the charge, or will they? What will FD gain by all this?

Colin

trevjl

I have been with FD since they started and that fact that I have never had a problem and their second to none customer service means that I have all my banking with them. My wife also has all her accounts with them as well. Therefore the charges will not apply to me. I have a, current account, offset mortgage, savings account and numerous other accounts, alot of which I no longer use. My CC is also with them and is used for everything (paid off in full every month) so as to keep as much in my account to offset the mortgage.
Thats the waffle, here is my opinion.
I am not worried about their rates for the reasons above (offsetting), therefore they can charge what they like. If you are happy with your bank, you will use it for all your needs and then will not pay the charge. If you are not happy, why use them in the first place. If you go to a restaurant, the food is good and the service first rate, you will keep returning and tip the staff, if it is poor and poor service you will not tip and not go there again.
Bit of strange anomaly I know, but true.
Too much is made off 0.02% on a rate and not enough of service these days, that is why I will be staying and suggest that you are free to choose. Just search the web, find a loopehole or a quick freebie and put up with awfull service.

PosterBoy77

LesD wrote:

I can't understand why so many people seem to be surprised by FD's pricing action. Having lost income from the fees charged to people in debt who couldn't manage their finances properly, they have now decided to charge for basic banking services.

We all knew (well, most of us anyway) this would be the result.

I wouldn't bother moving accounts. The other banks will jump on the bandwagon soon too.

I see there's also a move afoot to charge a fixed fee for credit cards too. So, even those of us who pay off monthly will bear that cost.

So, a BIG thanks to the do-gooders who lobbied for the reduction in the debt fees!

I see a number of people making this point, but I just don't see it! Just because banks have had to reduce some of their excessive charges does not mean that they are suddenly going to be making big losses. Even with the reductions in some of their fees, they are still making huge sums of money. Anyway, most current accounts are not free anyway. Most pay very little interest and the money is simply used by the bank to earn money for itself. The simple thing is that the large high street banks have always offered poor deals and fleeced their customers, as most are too lazy to move to smaller more efficient banks. However, free banking will always be about, just perhaps not with the most greedy of banks.