First Direct Cash ISA

Wiganner

Recently checked a cash ISA that I opened 18 months ago with First Direct. I did it through a link on MSE website as it was advertised as the best at the time. I think the rate was 2%. I was surprised to find that I had only been accruing 0.2% interest. I have complained but cannot find the original link to check. Anyone else experienced a similar problem? Will post again if I get a satisfactory reply from FD.

Thanks

Lokolo_2

Wiganner wrote: »

Recently checked a cash ISA that I opened 18 months ago with First Direct. I did it through a link on MSE website as it was advertised as the best at the time. I think the rate was 2%. I was surprised to find that I had only been accruing 0.2% interest. I have complained but cannot find the original link to check. Anyone else experienced a similar problem? Will post again if I get a satisfactory reply from FD.

Thanks

Well normally when you open an ISA, there will be a bonus period for the rate of interest, after that period is up then the rate will drop, you then need to transfer your ISA to another provider to get a better rate, you can't just leave it in one ISA forever and expect the rate to always be good.

So I would say that the "problem" you experienced was mainly caused by your inability to monitor interest rates of your ISA.

You now need to find another ISA provider who will accept transfers in if you want a higher rate, check the banking/saving tab at the top of this page and navigate to the ISA's section and you will find plenty of choice and an explanation as to how ISA's work. :j

Edit: If you mean 0.2% for the WHOLE period of having your ISA then you should check the terms you signed up to at the time, it doesn't sound quite right.

Wiganner

Thanks for the reply. You are correct in one respect, I haven't been monitoring it closely enough and I am usually very good at that, changing my ISAs quite frequently. However, I was only paid the 0.2% from the initial set up which leads me to believe that the link may have been wrong or I was given the wrong ISA deal by FD.

Reaper

All the banks lower their rates after about a year, most even tell you in advance that it will happen by advertising a "bonus" on the interest rate that expires when the year is up.

Review the rates on all your savings accounts at least annually.

EDIT: Our posts crossed. If they have only paid you 0.2% from outset then that does not sound right. You will have to wait and see what they say. However check the T&C. Some accounts have a minimum amount and if you fall short the interest rate dives.

Lokolo_2

Wiganner wrote: »

Thanks for the reply. You are correct in one respect, I haven't been monitoring it closely enough and I am usually very good at that, changing my ISAs quite frequently. However, I was only paid the 0.2% from the initial set up which leads me to believe that the link may have been wrong or I was given the wrong ISA deal by FD.

Ahhh I see, do you have any sort of deposit confirmation which would show the interest rate you signed up to? If you have any sort of confirmation of the "2%" rate then you may have a bargaining point in your complaint, if not then you may have just signed up to the wrong ISA unfortunately.

You can improve the rate quite a bit by transfering your ISA to Halifax, who offer 3% for their instant access ISA :j

Wiganner

I have infact transferred it this weekend to the Halifax deal but I thought I'd fire off a complaint to First Direct before I closed the account to see if I could get anywhere. I don't seem to have any written details of the original deal as it was all done online.