First direct savings accounts?

Rich1976

As a current account customer of First Direct for a few years now ( although I do have ajoint account elsewhere as well ) I was looking at their website today and in particular their savings accounts.

What struck me was how truly awful the rates were - with the exception of the Regular Saver and it got me wondering

Does First Direct manage to sell any of the other accounts despite the atrocious rates. For example the 'Savings Account' pays 0.05%. The 'Everyday E saver' 0.25% and the wonderfully but misnamed 'Bonus Savings' 0.20% - and these are gross!

The Cash ISA is slightly better with rates beginning at 0.5% and going up to 3% when you have 40k in the account.

I realise base rate is at an all time low but these rates are easily beaten if people spend time looking around.

So my question is there anybody out there who actively uses any of these accounts? ( and I don't mean just to stick £1 in to avoid the current account fee !)

opinions4u

The savings market relies on customer inertia.

HSBC (who on FD) don't need to attract new deposits. So they don't need to pay for them.

Gromitt

Yes, I know someone who is happy with these rates as they were brainwashed by the bank when they were advertising "Keep all your money in one place for safety, security, and ease of access.".

Ask them a question about their rates and they'll proudly tell you that their rates mean that they are in a strong position and don't need government funding to survive, unlike other bank with higher rates.

J_i_m

Yes.. I have several things through First Direct, from current account, savings through to car insurance.

I'm not overly fussed about the relatively weak interest rates in this era of low rates since at my level of saving it isn't exactly losing me any great amount.

I have most of financial services through them because in my experience they've always provided better customer service than any other bank.

But each to their own.

However if an ISA from another provider comes along in April that blows my FD one away (in overall flexibility not just rates) then I would ofcourse consider transferring.

Rich1976

J_i_m wrote: »

Yes.. I have several things through First Direct, from current account, savings through to car insurance.

I'm not overly fussed about the relatively weak interest rates in this era of low rates since at my level of saving it isn't exactly losing me any great amount.

I have most of financial services through them because in my experience they've always provided better customer service than any other bank.

But each to their own.

However if an ISA from another provider comes along in April that blows my FD one away (in overall flexibility not just rates) then I would ofcourse consider transferring.

But surely there is a price to pay for this in putting up with some of the lowest rates around? Even with small amounts of savings you would still do better with a higher interest rate.

As regards customer service, I have rarely thought that first direct offer 'exceptional service' and certainly not at the cost of putting up with an awful rate of interest.

Eponym

Also, I would have thought good customer service is far more important for a current account than a savings account as what can really go wrong?

JournalGirl

I use their savings account, but I have an offset mortgage with them, so gain significantly more benefit than the 'official' rate.

And I completely agree with Eponym, considering how little money I would actually make on a 'good' savings rate, it's worth that small sacrifice for the excellent service I receive.

nearlyrich

I just got my end of regular saver letter today so yes I use their accounts, I have an Everyday Saver where I keep my surplus out of my Current acccount, I move it when I get say £500 more than I can see spending in the next few weeks. I also have accounts with multiple other organisations, ISAs etc but I like to have some money I can get to quickly if I need it or want to spend it. I wouldn't use FD to seriously save or my only option...

alanq

Rich1976 wrote: »

Does First Direct manage to sell any of the other accounts despite the atrocious rates. For example the 'Savings Account' pays 0.05%. The 'Everyday E saver' 0.25% ...

Hardly market leading but it is possible to get a 1% bonus for 12 months on the 'Everyday E saver' 0.25%. Ts&Cs apply.

http://www1.firstdirect.com/1/2/savings/e-saver?WT.ac=FDST_LHM_SAV_EDS1001

King_Weasel

There's no rule that says if you bank with FD for any reason you have to use their savings accounts. We mostly rely on Lloyds Vantage for instant access cash with interest but we like FD's service - and their 8% regular saver rate. Wife has just finished the year and has immediately started up a new one - can't afford to miss a day at 8%!

Eponym

JournalGirl wrote: »

I use their savings account, but I have an offset mortgage with them, so gain significantly more benefit than the 'official' rate.

And I completely agree with Eponym, considering how little money I would actually make on a 'good' savings rate, it's worth that small sacrifice for the excellent service I receive.

Actually, I meant that you might as well go for the best returns on a savings account regardless of provider because there's less that can go wrong with a savings account because you usually haven't got so many transfers in and out.