First Direct - 'Savings' account drops to 0.10% (under £500)

ED

First Direct have suddenly dropped the rate on their 'Savings' account to just 0.10% for balances below £500. (Above that earns 3.25%.)

Gone are the days of sweeping a few dozen or few hundred pounds for a week or two from Cheque account to Savings account within First Direct. Our family will be amongst the many customers who withdraw all spare funds pronto (ideally on day of receipt) - and find a more competitive bank to handle Direct Debits.

Which bank has the most efficient and highest paying combo (cheque a/c + savings a/c)? The latter must be instant access, penalty-free. Disqualified :

- First Direct's e-Savings a/c (nil interest in month of withdrawal)
- Alliance + Leicester Online Saver (internal transfers take 24 hrs)
+ extra banking day for SO/DD/BACS to external bank)

Suggestions, anyone?

nearlyrich

I bank with FD but send my savings to ING on payday. 5% interest at the moment. I have transferred money between the two in both directions and they are pretty quick to get ot back to FD when needed. HTH

newsmonkey

ED wrote:

Which bank has the most efficient and highest paying combo (cheque a/c + savings a/c)? The latter must be instant access, penalty-free.

Suggestions, anyone?

Maybe give the Halifax a go?
3% gross on positive balance in your current account
4,9% gross on websaver.

I regularly juggle between the two and transfers seem to be instant. I'm sure I've often been able to transfer web -> current and get the money from an ATM a few minutes later.

isasmurf

You could consider Nationwide. They have an e-savings account (5% AER) linked to their Flex current account. The e-savings is operated by internet and all deposits/withdrawals must come/go through the Flexaccount and transfers take place immediately. Downside is the current account pays poorly (0.5% AER) if you pay in less than £500 in the account a month, but 3% AER if you pay in more than £1000 in the account per month.

I've never used it myself so don't know what their service is like, I was just aware of it from when I reviewed my savings accounts a while back and seriously considered taking up the offer although I wasn't in the market for a current account.