7% First Direct ISA?!?!?!?

SnowMan

Ultrasonic wrote: »

Well spotted. I'd stupidly assumed the '(6)' referred to something like issue 6 of that ISA rather than a footnote .

Yup. Me too :D:o:o

richardruff

SnowMan wrote: »

Yup. Me too :D:o:o

Good to know I'm not the only one! It does seem a little misleading, particluarly as it explains, "To open a regular saver ISA you must hold a first direct 1st Account."

Maybe they should add "You also need to posses time travelling abilities."

:rotfl:

Spiggle

FD have Regular Saver at 8% gross pa. It is NOT an ISA. We have a joint 1st account at FD and have one each of the Reg Savers where we save £600 per month (2x£300) and then bung in a FRISA in March.

I haven't checked recently (on Martin's calculator on main site) but I think I needed to get an ISA paying 6+% to beat this account. over the year assuming maximum payments in, the gross interest is around £156 and net interest paid is £124.

HTH,
Spigs

Ultrasonic

Spiggle wrote: »

I haven't checked recently (on Martin's calculator on main site) but I think I needed to get an ISA paying 6+% to beat this account. over the year assuming maximum payments in, the gross interest is around £156 and net interest paid is £124.

All the calculator would tell you is 0.8*8%=6.4% (assuming basic rate tax), and you won't find an ISA that pays anything like that much. This is only really the valid comparison for someone who is saving as the year progresses though. If someone has a full £5640 to invest at the start of the year the calculation is rather more complicated.

MoneySaverLog

It's a good way of saving next years ISA allowance to put in in full :-)
8% First Direct and 6% HSBC seem to be the best rate regular savers available.

Spiggle

Ultrasonic wrote: »

All the calculator would tell you is 0.8*8%=6.4% (assuming basic rate tax), and you won't find an ISA that pays anything like that much. This is only really the valid comparison for someone who is saving as the year progresses though. If someone has a full £5640 to invest at the start of the year the calculation is rather more complicated.

I agree absolutely. Until March of this year when the reg savers matured, we have never had the full amount to put in as a lump. So for us saving this way and then getting the best FRISA/ISA in March on maturity means my taxable savings are working at the best rates I can achieve and I have a lump sum for the 'ISA season'. But I realise that I'm a year behind the game (well a good few years as we only had the :idea: in early 2010!).

MoneySaverLog wrote: »

It's a good way of saving next years ISA allowance to put in in full :-)
8% First Direct and 6% HSBC seem to be the best rate regular savers available.

Yep, as I say above, it works for someone who wants/needs to 'build' a lump sum to deposit in a FRISA/ISA. :cool:

Take care,
Spigs

richardruff

MoneySaverLog wrote: »

8% First Direct and 6% HSBC seem to be the best rate regular savers available.

I guess though the rate is watered down by the fact that you have to have one of the paid current accounts with either of these (HSBC Advance / 1st Account) - though I believe that the fee is waived on 1st account if you are fortunate to earn enough!

Wouldn't mind that though I guess as I'm already paying for one account for the Mobile phone Insurance & RAC Breakdown Cover.

:eek:

Perelandra

richardruff wrote: »

I guess though the rate is watered down by the fact that you have to have one of the paid current accounts with either of these (HSBC Advance / 1st Account) - though I believe that the fee is waived on 1st account if you are fortunate to earn enough!

Wouldn't mind that though I guess as I'm already paying for one account for the Mobile phone Insurance & RAC Breakdown Cover.

:eek:

I don't believe that this is correct- there's no need to pay, nor to earn a particular amount:

HSBC: The 6% rate is for those with an HSBC "Bank Account" or "Basic Bank Account". Neither of these has a monthly charge.
-- If you do have the Advance account, you can actually get an 8% regular saver from HSBC. However, there is a feww on that one, which doesn't justify the extra 2%.

First Direct: Provided you do the savings account trick mentioned alread in this thread, there's no minimum monthly pay-in needed to avoid the monthyl charge.

MoneySaverLog

richardruff wrote: »

I guess though the rate is watered down by the fact that you have to have one of the paid current accounts

No need for any paid accounts with either First Direct or HSBC. You can have the paid account with HSBC then you get 8% with them. Quite happy to take the free bank account and pay in at least £500 a month to get 6% with HSBC as it's used to fund both HSBC regular saver and FD regular saver via the first account