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

havenlad

Nearlyrich

The point of putting 500 quid in, out, in out, in out and shaking it all about with the same cashier and watching the queue grow is that in this case it is perfectly justified as you are doing something as a direct result of a FD policy. If you get paid 500 quid a month net, you have to put this in 3 times a month to avoid the charge. It is basically a ploy to get FD as annoyed as possible, ie make them pay the 300 quid a year to keep the account open and get people complaining about their queues. If all banks implemented this policy, there would be nowhere to put low balance current accounts and for low earners that is simply unfair.

DevilGoesDown2Bristol

'Scuse my ignorance ladies and gentlemen, but does First Direct even *have* branches and cashiers and suchlike? My understanding is that they are online, telephone and mail only. Yes, you can access certain First Direct services in HSBC branches but they would be well within their rights to refuse to let you stand at the head of a queue and juggle money around. If they're having a busy time of it and they think you're just making a point, they'll just give priority to customers of HSBC proper.

havenlad wrote:

(...snip...) Better still, open another 3 accounts and keep tranferring the money between the accounts, therefore costing them 1200 quid a year and why not throw in a deposit account for good measure - keep a quid in of course - First Direct - we love 'em :-) BARGAIN

Don't try this or you'll end up in hot water! From FD's website, under "Will I be charged for banking with First Direct?":

"Provided you credit your Bank Account or Cheque Account with at least £1,500 each month (internal transfers from first direct accounts excluded),"

So, transferring money between First Direct accounts won't exempt you from the fee, and now you're liable for £30 per month This also means that if they later add a minimum balance requirement to their savings account get-out clause (and surely they must), you won't be able to avoid the charges by punting money back and forth between savings accounts and current accounts. Keep that in mind!

I doubt they'd let you open multiple current accounts with them anyway; most banks will only allow you to have one with them.

ChickChicken

DevilGoesDown2Bristol wrote:

So, transferring money between First Direct accounts won't exempt you from the fee, and now you're liable for £30 per month This also means that if they later add a minimum balance requirement to their savings account get-out clause (and surely they must), you won't be able to avoid the charges by punting money back and forth between savings accounts and current accounts. Keep that in mind!

I received my letter giving me the good news this morning!

From what I can make out, moving money from any FD account whether it's a savings account or another current account, would be classed as an "internal transfer" thereby not exempting you from the £10 pm fee.

But as for the "you'll need to pay in to your account at least £1,500 each month" bit, I believe that it doesn't mean in one go, so, your wages can go in and then you could pay in some cheques or cash so that accumulatively over the month you've deposited £1,500.

I'm so disappointed they've decided to do this! It's ok at the moment as I currently do pay in enough to mean I don't have to pay the fee, but that may change...
I've only been with FD for about 9 months and was very pleased with the way things were going but now! I really feel like closing my account, but it was such a pain changing everything over from my previous Bank, I really don't feel like I've got the energy to go through it all again!

Patr100

Well having been with FD for at least 15 years I got the letter this morning - I am presently officially exempt from the charge.
The past few years, I have been working part time and earning a fraction ( like 20%!) of the £1500 a month required but I already have a FD visa that I only very occasionally use - preferring my Goldfish MC which I earn about £10 worth of vouchers a year so I am no big spender either way. I could have switched to using my FD card for most card purchases but it seems they don't require that at the moment - I will just still use it now and again as I do with total purchases on the FD CC of less than £100 in the last year.

The FD CC must have tipped it so I am staying with FD - also because as a non Passport/driving Licence/benefit book holder I would need to get a Tax office letter to prove my identity to open a new account at another bank!

So unless the screw tightens further I am staying.

Mercenary

If you take the time to read the FAQs on the FD site http://www.firstdirect.com/faqs/index.shtml you will find answers such as:

"Provided you credit your Bank Account or Cheque Account with at least £1,500 each month (internal transfers from first direct accounts excluded), keep an average monthly balance in excess of £1,500 or have an additional product (see next question for details) with first direct you will not incur our banking fee. "

and

"How will I know if I have an average monthly balance of £1,500?
By month we mean calendar month. As a guide, to calculate your average monthly balance, add together the end of day balances for each day during the month in question, then divide your total by the number of days in that month."

We are in the very fortunate position that we have a current account, e-savings account and a FD credit card (always paid off in full) so we are exempt from the charge.....but even if we weren't, we'd consider staying with FD as we have been extrewmely impressed with their helpful service and that it's very likely that the other banks are all set to follow suit following recent Financial Authority rulings.
Another factor being that, in the past, we've been employed by and held accounts with other banks and, to be frank, have found their general attitude and CS is absolutely cr*p :undecided . We certainly don't want to be out of the frying pan and into the fire.

Simply opening a savings account ( you should have one anyway) or using a credit card sparingly then paying it off in full isn't a painful procedure for anyone who could do this to save themselves the charge :rolleyes: .

Why leave on principle instead of helping yourself by using a little common sense ?

going2die_rich

Mercenary wrote:

Why leave on principle instead of helping yourself by using a little common sense ?

Because why waste time jumping through hoops to use loopholes when you can go else where and not be charged full stop.

How long before they close that loophole down? Opening an additional account that you won't use doesn't make them more money, only adds to their costs. So how long will it be before they add some more conditions to "free" banking with them or just charge anyway?

You can't even justify it by saying they are the best paying bank so it's worth doing the loophole as they AREN'T the best paying bank.

honey123

Hi
just wonder how to close my account is there any number to call or do i need to write to them

tbh444

I'm a bit surprised by how many people have come on here defending FD, nearly all talking about 'customer service'... is it just me or shouldn't banking be a seamless process that doesn't require such things? If I have to speak to my bank on the 'phone it's once too often as far as I'm concerned!

They are not your friend and never were, they are part of HSBC !!!!!!!

Plus, one of the worst aspects of this is that while allowing a poor savings account as the fee-waiver, what they are actually hard-selling is credit cards and loans, thus aiming to increase the debt culture amongst the poor in this country, not reduce it as has been vaguely suggested.

I only wish I held a high-value set of accounts with them now, just so I could tell them where to stick them!

havenlad

Arrgghhhh

Open a sole for you, a sole for partner and a joint sole.

1st of the month, take wages out of one of the sole at counter and put it in to the joint, then take it out of the joint and into the other sole. A week later, do the same again. Also open deposit account, costing the bank yet more money. Maybe even a credit card and cost them more. This will cost them over 900 quid a year and cost the user nowt. Also queues would grow at HSBC, which owns FD. They only started FD as an experiment. This is not a demand, just an idea. I'm moving mine anyway. And no rules are broken.

ianfao

tbh444 wrote:

I'm a bit surprised by how many people have come on here defending FD, nearly all talking about 'customer service'... QUOTE]

I think good customer service is such a rarity these days that when we find it we have to tell everyone. That said I cancelled my FD account when the rumours first surfaced.