First Direct - what happens if my salary's under £1500

becominganobsessivesaver

I've just got a couple of questions re: switching my account from Lloyds to First Direct.

I've just fallen out with Lloyds due to being charged an overdraft useage fee of £10 for being overdrawn for 2 days to the tune of £15 (when we had over £3k in our other account). I could accept the one £5, but was fuming to be charged twice because it spanned over 2 months! They have agreed to refund the second charge, but I am fuming - therefore a switch is in order!

I currently get over the £1,500 per month, but will soon be on maternity, so it will drop to around £500 for a few months. To avoid the £10 monthly charge can I 'recycle' £1,000 for this period - ie pay it in from another account then withdraw it, then pay it again the next month?

Thanks in advance for any help!

Snuggles

You won't be charged the £10 as long as you also have another product (barring some exclusions) with FD. So just open a savings account with them and stick a tenner in it.

I would highly recommend them by the way, I've banked with them for over fifteen years and they are a pleasure to deal with.

bodmil

closed wrote: »

Is it worth moving over £5 - (they are just implementing their terms like any bank would)? Especially if you get charged £10/month as a result

The OP would get £100 for switching too, so I think it would be totally worth it!

noh

Snuggles wrote: »

You won't be charged the £10 as long as you also have another product (barring some exclusions) with FD. So just open a savings account with them and stick a tenner in it.
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One pound will suffice.

becominganobsessivesaver

Thank you all for the replies. I've decided to go with the First Direct option. It only took 10 mins to apply (less than the time that I was on the phone to Lloyds last night!) I also opened the esaver so I can use that when I'm on maternity leave to avoid the charge.

qpop

You don't even have to *use* it. Just have the product on your profile. Their back office system isn't smart enough to flag that the "extra product" isn't being used.

Their savings rates are awful compared to other offerings, so don't be tempted to park any money in it. Although saying that their regular saver pays 8%AER gross and max input of £300pm. That's a pretty smart rate.

jimclark1967

Does anyone know how this works with a joint FD current account?

Do we need a joint savings account on our profiles / both need an individual one / just one of us need one?

I'd rather not have to do extra transfers each month if we can leave £1 sitting in an account!

Brodiebobs

so am i right in thinking if i opened an account, i just need to open a saver as well, as i dont earn £1500 a month?

i've wanted to open an account for a while after reading all the excellent reviews but the £1500 put me off as i'm part time so dont earn that much.

Horace

When I started banking with FD - I never had to take out a savings account with them as well.

I know that at the moment my income is well below their required limit, I am now thinking of moving from them because their bank charges are punitive (certainly for the situation I am in now).

exel1966

To clarify, the £1500 doesn't have to be salary and it doesn't have to be 1 payment of £1500, it could be 10 x £150 credits. There's nothing to stop anyone using the same £150 and transferring it in and out via Faster payments through another bank.

The easiest option though is as above, open an e-saver account with £1 and then just forget about it. Don't use the savings account to actually save as the interest rate is appalling.

Brodiebobs

i've just been on and set up an account, and an e-savings

all went through ok and have just got a confirmation e-mail.

Glad i read this thread today.