First direct savings accounts?

J_i_m

The highest interest rate isn't always everyone's main priority though.

Although admittedly it probably is for most.

eschaton

Have a FD Current Account and the 8% saver. Don't have another penny with them due to their rates.

People that are happy to accept rates like this because they want their money all in the one place or love the 'great customer service' are getting the pish ripped out of them.

Vortigern

I have 8p in a FD everyday eSaver. Is this too much?
How much could I gain by moving it elsewhere?

J_i_m

Poppycock. I'm not dicking about moving savings from bank to bank when it'd only make a return of a mere few pounds.

Besides, my money isn't all in one place anyway, My main banking and savings are with FD, but I also have both current and savings accounts in use with Halifax, a savings account with Barclays (left over from when they were my main bank, ditched them for the absolutely terrible service) which I use for Xmas and also investment accounts with NS&I.

katejo

Rich1976 wrote: »

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 !)

I have been with FD for a long time, almost since they started, mainly because of their customer services. I do most online but when I do ring I speak to a real person who isn't reading from a set script. Also I get a prompt answer and don't have to choose from 5 options several times over before being told that the service is only available from mon to Fri.

I have however noticed that the interest rates on savings accounts have sunk. I have had a cash ISA with them for a long time and it was really convenient. Until now the interest rate has been about 2.8% but it will sink to 0.5% at the end of this month. I have stopped paying into it and will look for a new ISA to transfer it to.

brasso

J_i_m wrote: »

Poppycock. I'm not dicking about moving savings from bank to bank when it'd only make a return of a mere few pounds.

Besides, my money isn't all in one place anyway, My main banking and savings are with FD, but I also have both current and savings accounts in use with Halifax, a savings account with Barclays (left over from when they were my main bank, ditched them for the absolutely terrible service) which I use for Xmas and also investment accounts with NS&I.

So you have at least 7 accounts but don't want to '!!!!!! about'?

With inflation at around 3% (and that's the official rate, not the real rate, of course), your savings are actually contracting by that amount each year if you keep it in an account that pays you no interest. And I say this as a happy long-time FD current account holder. I agree their service is very good if I have to call them but is that worth me losing 3% of my savings every year? No it isn't. It takes literally 2 minutes to log in and transfer your savings to another account.

It's because of this inertia that FD are laughing all the way to, er, the bank. Do you think for one moment that they keep your savings in an account paying THEM 0.5%? Do they hell. They will regularly !!!!!! about to make as much money out of your inertia as they possibly can. It's actually ylur money -- the money you should be getting.

gkerr4

brasso is right - people should move their money when rates are as poor as that - it's just basic sensible financial management.

its OK saying "I don't get much anyway.." but i have just moved cash from a barclays "reward saver" whose promotional rates dropped to 0.10% - 0.10% i mean?? - in contrast, i have moved it to a Post office account which earns 3.12% - over 30x higher interest! - even if you were only getting 50p a month before - it's £15 now and if you don't want that extra £14.50 then transfer it to me!

staying with banks 'allows' them to keep offering low rates - if people moved more then banks would have to work harder to tempt people in - they do need cash, even if theyd like to pretend that they dont!

innovate

gkerr4 wrote: »

... i have moved it to a Post office account which earns 3.12%

Right move, definitely.

Though, PO, in line with everyone else will chop the rate soon - 2.67 if memory serves me right , from sometime next week

Still, roughly over 2.5 times more than you would get at FD.

Bit of a no brainer where to keep your money.

But then, who said you need brains.

zerog

gkerr4 wrote: »

its OK saying "I don't get much anyway.." but i have just moved cash from a barclays "reward saver" whose promotional rates dropped to 0.10% - 0.10% i mean?? - in contrast, i have moved it to a Post office account which earns 3.12% - over 30x higher interest! - even if you were only getting 50p a month before - it's £15 now and if you don't want that extra £14.50 then transfer it to me!

Possibly a lot of people who use FD actually don't care about £14.50 a month when they earn that much in a few minutes or regularly spend £145 on a meal

If you have £1m in an investment account you might keep £10k in a current account earning nothing just for daily expenses

innovate

zerog wrote: »

If you have £1m in an investment account you might keep £10k in a current account earning nothing just for daily expenses

You really believe that people who have £1m in an investment account, and £10K in a current account for daily expenses, would have a current account with FD?