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

fishergill

Paul_Herring wrote:

Under the current rules, yes. Or open a savings account with £1. Or have an unused CC with them.

I suspect they'll catch onto people 'not using them as they should' and put further restrictions on them, but at the moment, yes, £1500 put in then out satisfies their current criteria.

I'm not sure that this is correct. Looking at the letter I received from FD yesterday it says "you'll need to pay in to your account at least £1,500 each month (internal transfers excluded), maintain an average balance on it throughout each month in excess of £1,500, or take out another product with FD."
Surely moving money from a savings account with them is an internal transfer?
Also, if you withdraw any money from the savings account, you get no interest on any of your savings during that month, so you wouldn't even be getting the unexciting 4.75%.

Paul_Herring

fishergill wrote:

I'm not sure that this is correct. Looking at the letter I received from FD yesterday it says "you'll need to pay in to your account at least £1,500 each month (internal transfers excluded), maintain an average balance on it throughout each month in excess of £1,500, or take out another product with FD."
Surely moving money from a savings account with them is an internal transfer?.

The internal transfer clause doesn't apply if you have another product. It's either £1500 (excluding internal transfers) or another product. They're mutually exclusive. (At the moment....)

tonplus

Just done three things, complained to First Direct, told them i'm closing my account, and emailed all my friends and told them to ditch all First Direct and HSBC stuff, if we all do it they wont have any customers!

O well at least now I can breathe!

tonplus.

Turtle

The £1500 deposit defintely does not have to be in one go. It can be dribs and drabs as long as its not from other fd a/cs. I can't remember who asked but you can have your salary paid direct to your savings account as well, it doesnt have to go to the current account. instant transfer on line as well then.

weaver

southernscouser wrote:

For me there a couple of reasons. If you have a savings account with them they are hoping you will deposit into it regularly. The more customers money they have the more they can invest and increase profits.

Secondly they will hope you take out a credit card and do not clear the balance in full each month!

Perhaps!

understand were you are coming from on this totally, but as Im sure a good percentage of customers will open a saving account with the minimun balance required, it will cost FD even more to run these "avoid the charges" accounts.

I still think other banks etc will be watching this closely and if people stay and pay the fees the flood gates will open. Lets face it the majority of people prefer to stay with what they are use to and never change banks,insurance,mortgage etc. Its thanks to sites like this that establishments can no longer rely on old fashioned loyalty.


I feel that those who can should close FD accounts sending a clear message to banks. Those that havnt got the choice and cannot move for one reason or another will have to got down the "avoid charges route". Maybe Banks will forget the idea of these charges if enough people vote with their feet.

If one bank gets away with charging you can bet others will follow - as consumers we need to act and show them we will not be walked all over. If we are not careful we will end up paying for ever little thing - look at the waste bin charges they are trying out (another topic but you get the idea )

dsbu

I have had most of the FD products over the years - flexiloan, offset mortgage, First Directory, text message banking, life insurance, contents insurance, e-savings account, 2 or 3 different credit cards, all on the back of the original FD bank account I opened back in 1991.

I have closed the gold credit card account this morning, waiting for the interest to be paid onto the e-savings account before withdrawing the couple of grand I have in there and closing my bank account when the A&L account details I have just opened arrive.

I telephoned this morning and had a "discussion" with the CS op - she was giving me loads of guff about how the charge doesnt affect me as I have multi-products.

She didnt get the "I am leaving on principal" message - I may have the funds to be "fee-free" now, but things could easily change.
If I am in a poor enough position to have to qualify to pay the charges, the last thing I want is another £10 a month to pay!

So, the moral of the story is that banks only want you if you have money - not if you dont - but then we all knew that already didnt we - hence the reason why they charge extortionate rates to those on lesser incomes for the basic banking services.

I will try A&L - if nothing else, the initial interest rate should offset the hassle of changing a few DD's and SO's.

Patr100

If the trend does spread or not - I think we will find some banks advertsing " Free banking" as a virtue - but in the small print with strings attached like minimum balances or charges for credit cards etc.

CopperPlate_2

Exactly. How often does A&L publicise the minimum funding limit for their Premier Direct Account and tell you that there is a £5 charge each month that funding limit is not reached? I can't see it anywhere on their site - you have to dig around in the charges/fees bit of the product page. Granted you are told - somewhere - from memory in the booklet you get from them, but it's not exactly in your face.

vegansaver

Received the letter and have decided to close my account.

I simply don't like the idea of being forced to take on another product from them or have £1500 pass through my account each month.

havenlad

Why is everybody closing their account? FD want us to do exactly that!!!! These accounts cost them 300 quid a month. Open a new current account elsewhere, and a deposit account with FD. Stick a quid in both FD accounts and walk away. Play them at their own game. All you are doing by moving your account is saving them 300 quid a year