8% First Direct - Easy Explanation

amictus

DreamerV wrote: »

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

My understanding was that you only needed to use the easyswitch service to change the SO/DD? Let me know if you hear otherwise. Cheers!

amictus

innovate wrote: »

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

Yup I think just the effort of organising it all is what puts people off. I'm only bothering because I think both the 8% account and £100 bonus together just about make it worth while.

DreamerV

innovate wrote: »

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.

Innovate, what you say makes sense, and would be financially savvy but being extremely frank I am prone to depression (high functioning so I still hold down job, pass exams, maintain insight etc) and tend to have a few months each year where I do let my banking slip (usually a month or so winter, and a month or so summer). I can't take the risk at the moment, although it definitely is something I may one day consider. I think what I'm more likely to try is slow stoozing (just using a 0% on purchases card, paying minimum amounts, and saving the rest of the full amounts in a high interest account, and then using the capital to pay off the balance before the deal ends). I think that's stoozing anyhow. From what I can tell, I can just set up one direct debit to do that, and put a note in my diary when to sort out final payment.

I did check if I do still meet the pre-requisites though with Nationwide, and they said no because of the EasySwitch (although I am not convinced as they define main account as either/or 750/month incoming/direct debits). Will wait for clarification.

DreamerV

owains wrote: »

My understanding was that you only needed to use the easyswitch service to change the SO/DD? Let me know if you hear otherwise. Cheers!

Doh! I just got a call from them (very nice woman - they have always been polite, I'll give them that!) and saw your message just after it! I think you do just need to use the easyswitch to change the DD's over - and that is what qualifies you for the bonus, along with the income?

What I did get from the call though: The lady said having used the easy switch, I should qualify as long as 1500 a month is coming in (she did not say whether for 1 month or 3, but I didn't think to ask as I'm happy to pay £1500 a month). She said they do not ask that the income is as high as 1500, just that that much is coming in during the month. She gave me the example that the £300 I used to fund my account (to transfer to the Reg Saver) counts as £300/£1500. That was just a Faster Payments transfer from Nationwide. That give me confidence that it's fine if the rest came from Nationwide. She said as long as it's from a source external to First Direct.

As an aside, she listened to the calls before she phoned me, and said I had been given misadvice. I did explain to her that I was dissatisfied with the advice, but happy with how polite and friendly the staff are. I am not unreasonable, honest She is in the process of sorting a written message to my account noting that I do qualify despite what has been said by one of the 3 people I talked to (I asked for it in writing, as I don't like having to trace calls to prove things, and I don't quite trust them yet - although I am happy to give them a chance to build up rapport and trust).

ejv

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.

Hi DreamerV,
This is exactly my reason as well.

I'm neither a NW nor FD customer now.I'm happy to switch to either,if I can get something out of it.

Whatever said of switch, you can have problems.I have only 2 DD in my account, and during last switch, one didn't go right and my mobile phone provider cut me off!! That is 50% failure rate from the 2nd best bank in UK!!So I think looking a bonus for taking these risks and pain is quite reasonable.

I was quite amused by the NW 4.25% ISA, but wasn't too happy to pay/bounce £750 for the whole term of the ISA, as my circumstances change in Sep 2012.

Then I stumbled upon this FD rate and the bonus---which would compensate me if I chose the 3.3% Santander instead of NWide.
So,like u, I'm not for taking advantage, but just playing safe.

Cheers:beer:

DreamerV

ejv wrote: »

Hi DreamerV,
This is exactly my reason as well.

I'm neither a NW nor FD customer now.I'm happy to switch to either,if I can get something out of it.

Whatever said of switch, you can have problems.I have only 2 DD in my account, and during last switch, one didn't go right and my mobile phone provider cut me off!! That is 50% failure rate from the 2nd best bank in UK!!So I think looking a bonus for taking these risks and pain is quite reasonable.

I was quite amused by the NW 4.25% ISA, but wasn't too happy to pay/bounce £750 for the whole term of the ISA, as my circumstances change in Sep 2012.

Then I stumbled upon this FD rate and the bonus---which would compensate me if I chose the 3.3% Santander instead of NWide.
So,like u, I'm not for taking advantage, but just playing safe.

Cheers:beer:

Thanks for this. I'm kicking myself as I qualify for N/W till the switch goes through (always had enough going through Flex, was my main account!). I could have saved myself all the bother, posting forms, keeping eye on dd's, etc. if I'd been psychic to realise they were going to offer a 4.25% ISA a couple of days after opening accounts with FD! I'm still better off with FD but as I said by very little.

I actually worked things out the same way as you, which makes me feel better about my calculations - worked out how much I'm losing by taking the next best deal instead of the NW flexclusive and worked out if the £100 is more than this loss (glad learning about opportunity cost at uni hasn't been wasted)

ejv

I was about to mention to click through "moneysupermarket" link which would fetch you £125:j.....it seems u've already started the account:o. But may be of help to any others who haven't started yet:money:

DreamerV

Thanks ejv. I wish I'd signed up through someone for FD bonus (for a share of it)

vixen1500

Hi,

Anyone know how long it is before you get the signup bonus with FD?

amictus

Thanks for all the info guys. I might need to delay this for a while until I have enough cash available to fund the first monthly £1500 instalment.

Just being nosey... did you apply online or over the phone? Were you able to open all three accounts (current, esaver, regular saver) in one go? Or do the savings accounts have to be opened once the current account has been created? Also, did you pass on details details of the SO/DD for the easyswitch at this stage, or is this done through the online banking system? I'll be keen to hear how you get on. Cheers!