8% First Direct - Easy Explanation

Spiggle

ejv wrote: »

Can this all be done entirely online?
Or is it necessary /advisable to ring them up at any stage?
What is the difference between Everyday E-saver and savings Account?

Yes, you can apply online.

I would go for the Everday e-saver when you open the account. The interest rate is pants (0.25%) but if you ring them after opening you can upgrade it for the first year to have an extra 1% added. (The savings account has an even more pants interest rate!) This e-savings savings account is really only to ensure you don't have to pay any fee if you can't pay in your £1500 in any month and to recieve matured reg saver funds. The reg saver payment must come from the 1st account and they will set up the standing order for you.

If you want to pay less than £300 in any month into the reg saver it is very easy to amend the amount online through the online banking screen.

By the way, if you open a joint account you can have two reg savers, one for each of the account holders. This is what me and OH have done.

At some point you will probably need to speak with them but honestly I have never waited more than three rings before the phone is answered and there is no punching numbers into the phone pad or shouting at an automated machine! If they have a query they will occasionally ring you but tend to use electronic messaging through the online banking screen.

I found their switching service to be very good. One of my payees did not adhere to instruction sent to them by FD and when this caused a problem, I was able to get all the necessary documents/authorities from FD to complain to the payee and got compensated by the payee for their negligence. FD did not charge anything for the documents supplied and were nothing but helpful.

Seriously, ringing them is not a problem and they are truly helpful and knowledgeable. If you are switching your salary to them you will need to notify your employer as with any other bank account I believe.

I hope that helps,
Spigs

londoner1998

owains wrote: »

Yes this has me a bit confused too. I now understand that a one-off transfer of £1500 to the current account at some point in the first three months is all that is required. This is something that can be done by the account holder (i.e. not organised by FD personnel) and there is no minimum holding time requirement (i.e. transfer it back out straight away). The monthly payments can be organised completely separate to this as regular standing orders to the the current account, and from there to the savings account. Just for clarity, I would appreciate it if someone could confirm they have done this and received the bonus.

I know there are other requirements with standing orders etc but these are pretty clear I think.


Edit:



OK I seem to have been even more confused than I thought! Forget my original post.

So does the £1500 per month need to continue for the remaining 9 months of the year to receive the bonus, or is this just to avoid the monthly fee (which can be done more simply by opening a esaver account)?

Yes, i have put £1500 within the first three months and got the incentive: £125 in my case as it was through Moneysupermarket.
Regarding your second question, no, you don't need to put 1500 again each month. I am putting just the £300 each month to transfer to the regular saver at 8% and it is working fantastically. I didn't switch any DD or close any other accounts so it was all painless and very fast. I also opened the Savings Account to avoid the £10 fee: you can also avoid it by paying £1500 in each month, whichever is easier. Opening the savings account was done on the phone within 5 minutes, so no sweat over that. It is working very well for me, I highly recommend it.

ejv

Thanx spiggle...well explained.

The rant over the bonus payment was because of recent CO-OP fiasco---the bank which is second to FD on ranking!!!

The CO-OP CS reps would come up with different reasons for disqualifying the bonus every time you ring up. When they have put a bait to attract/poach customers from other banks,customers also would try tricks to get the bonus, as they spend time and energy for that.I think thats perfectly reasonable.

I'm going for the FD as advised by you all.

Thanx a lot guyz...

ejv

londoner1998 wrote: »

I didn't switch any DD

Thought that was a requisite for the bonus:huh:

amictus

Thanks for all the info guys... much appreciated.

londoner1998 wrote: »

Yes, i have put £1500 within the first three months and got the incentive

Sorry to be a pain, but could you just confirm whether you made ONE payment of £1500 at some point in the first three months, or three payments (one per month). Thanks!

DreamerV

Spiggle wrote: »

Could the reason the information seems 'off' in some way be because some people are looking for ways to benefit from the best buy reg saver without using the First account? If you are asking the FD staff for how you get around the requirements of the account then that may result in conflicting information as they are working on the basis that if you want the account and the bonus and the reg saver you would then adhere to the account requirements.

Spigs

There is nothing confusing about it if they stick to what they write on the website - however they have volunteered different information on each of the 3 times I rang them. I am not sure why this rant is directed from my post.

I genuinely wanted to switch to them, with the bonus being a sweetener. I was happy to bank with them for life, if they had good customer service (having witnessed the ineptitude at Santander and the likes previously). The original time I asked them to clarify the rules, as for me to switch from an institution I have used for 11 years, I did need a "sweetener" to jump. I feel it is (for me) like a recompense for the trouble of switching (time to research, to put the trust in someone else, etc). They explained rules to me and said I would not qualify for the bonus. I decided to go with them anyhow for the reg saver as it does give a good rate. The second time I phoned, I was chatting with the very nice lady and she asked me if I was interested in switching, and I said it would not be worth doing the switch (dd's, etc.) because it would just be a stress for no benefit (I didn't want to take advantange, but I didn't want to have the disadvantage of the stress of switching and keeping a tighter eye on things having to fund 2 institutions during the switchover). Anyhow, the lady said I would indeed qualify for a £100 bonus. She also said I did NOT have to open a 3rd product, and I would not be charged any fees as the Regular Saver counts as a qualifying product. This was conflicting advice, and was wrong. The first lady was possibly wrong about the bonus - but certainly one of them must have been as they said opposite things.

The third time I phoned because the dd letter came with a lot of Zeros on it and I just wanted to check it was all ok. I failed security on my address because I put in an extra line (not omitted one) and the next lady said people shouldn't be failed for extra lines, and that it may have been my Scottish accent. To be honest, I spent 3 years speaking on the phone to customers so I have a very clear telephone manner, and I also speak at conferences, etc. I have no trouble being understood when speaking. But anyhow, I'll let that slide, and hopefully I'll get the Hamilton centre next time as they understand me

So yes, I have found them inadequate. I have not tried to take advantage of them. Let's face it, the banks make a lot of money out of people and they are willing to tempt customers as it is to their benefit. I don't want to fleece them, but I do want to use what they are offering if I am eligible. It should not be too much to ask for them to be able to tell me whether I am eligible, and not change their minds.

As a shorter answer to your question Spiggle:

NO, the information does not seem "off" because some people are looking for ways to benefit without using the account. I WANT to use the account. Simply asking them the requirements to be eligible without being charged a fee, and whether I am eligible for the bonus or not, should not mean getting different information on different days.

Edited to add:

Just because you have never found them to give conflicting advice does not mean that they have never given conflicting advice. It is a strange thing for you to say to be honest. I have never had a problem with NPower. That does not mean I would doubt that somebody else has, and quote their post, suggesting that the person or people are trying to take advantage of that company. I may write I've never had a problem, but I'd leave it at that without the rant.

DreamerV

The other reason I need to know the answer about whether or not I qualify for the bonus (I'd still keep the current account, just wouldn't do the switch) is because by doing it, I no long qualify for a 4.25% ISA. I would need around £70 from FD to break even with N/W's deal. I am not stupid enough to jump ship at a financial loss to myself! So if they were even to give me £75, it would be worth it, if less I wouldn't want to. Again, not to take advantage, but so as not to put myself at disadvantage. I will be fully using my Reg Saver, and will be using my FD current account as my main account if I go ahead and switch, and not so much if I don't do the switch - as wherever my dd's stay would be my main account (as I find it easier to operate them that way).

amictus

DreamerV wrote: »

The other reason I need to know the answer about whether or not I qualify for the bonus (I'd still keep the current account, just wouldn't do the switch) is because by doing it, I no long qualify for a 4.25% ISA. I would need around £70 from FD to break even with N/W's deal. I am not stupid enough to jump ship at a financial loss to myself! So if they were even to give me £75, it would be worth it, if less I wouldn't want to. Again, not to take advantage, but so as not to put myself at disadvantage. I will be fully using my Reg Saver, and will be using my FD current account as my main account if I go ahead and switch, and not so much if I don't do the switch - as wherever my dd's stay would be my main account (as I find it easier to operate them that way).

Seems to me like you don't really have to switch as there's no requirement to close your existing account. Identify two standing orders to change, make one or three (still unsure about this) £1500 payments from existing current account in the first three months, transferring back £1200 immediately to leave £300 to fund the regular saver account. Change the standing orders back to your existing current account and reduce £1500 monthly transfer to £300 when the three months is up and £100 bonus has been paid. Well that's my plan anyway.

DreamerV

owains wrote: »

Seems to me like you don't really have to switch as there's no requirement to close your existing account. Identify two standing orders to change, make one or three (still unsure about this) £1500 payments from existing current account in the first three months, transferring back £1200 immediately to leave £300 to fund the regular saver account. Change the standing orders back to your existing current account and reduce £1500 monthly transfer to £300 when the three months is up and £100 bonus has been paid. Well that's my plan anyway.

They told me I had to use easyswitch to qualify for the bonus. Have sent them a message, will see what they say. Thank you

innovate

Just split your business over as many current accounts as you like - - the concept of a "Main" current account is alien to many people in an age where you can manage your finances online, with Standing Orders, Direct Debits and Faster Payments.

The bankers are just trying to make people believe that they can only have one current account.

It's obviously easier to have all your Direct Debits going out of just one account but with a little planning, you can set up your affairs so you can fulfill the FD and Nationwide pre-requisites, and with a little extra, you can also have some DDs at Santander, to get their cashback. It's easier if you can get your DDs going out on the same day - many companies will allow you to do that - so your budgeting is easier. For the funding of the accounts, use the same money (send some of it through one or more Halifax accounts, and may be even Lloyds Vantage whilst you are at it!).

If this sounds way to complicated for your liking - fair enough, stick with just one current account.