What is the procedure to close accounts in First Direct?

bertrand_jin

Hello MS Experts
Many appreciate this website, I opened a current account in first direct since Jan 25 2012 via the link suggested by MSE. In Jan 29 2012, I opened a regular saving account in first direct. Everything goes sweetly fine so far but for one thing.
What is the correct procedure to close both accounts in first direct after the anniversary? Is there any way to close both account without losing interest (of saving account) or one-month charge (on the current one)? May I close the current account by Jan 24 2013 and tell first direct to transfer the balance in saving account to my other bank's account on Jan 29 2013? Please correct me if my thought was stupid.
Looking forward to your advice / suggestions. Thanks a lot.
Best regards,
Bertrand

alanq

Do you have a FD savings account other than the regular saver? If so the RS balance SHOULD transfer to that automatically to that. (It didn't in my case).

If you don't have an existing savings account (or system fails as it did for me) then the RS account will BECOME an instant access savings account.

Wait for the RS to mature and interest to be credited. Transfer out all but £1 from the savings account. The fact that you have the savings account will exempt you from the £10 monthly Banking Fee on your FD current account.
See http://www1.firstdirect.com/1/2/rates-and-charges/charges

Then if desired close the accounts at leisure.

apt

Why do you want to close both accounts? If you keep your First Direct first account you can open another regular saver for this year. You won't get 8% interest anywhere else. The quickest way to release your money from this year's regular saver is to ring up on the anniversary and ask for the balance to be transferred to the first account. Then move it by faster payment.

fiesta04

Why would you want to close the Bank A/C if you do not incur any fees???

The Reg Saver can be started again on the same day the other one finishes. All you have to do is phone FD.

F4

pqrdef

bertrand_jin wrote: »

May I close the current account by Jan 24 2013 and tell first direct to transfer the balance in saving account to my other bank's account on Jan 29 2013?

The current account is a condition of the 8% interest rate. If you close the current account, you lose the interest rate for the whole year.

Otherwise, more MSEers would be collecting the £100 "leaving incentive". But you can't have both that and the Regular Saver.

version2014

fiesta04 wrote: »

Why would you want to close the Bank A/C if you do not incur any fees???

The Reg Saver can be started again on the same day the other one finishes. All you have to do is phone FD.

F4

Is that right, after one year..you can simply open it again and get 8% again?

bertrand_jin

pqrdef wrote: »

The current account is a condition of the 8% interest rate. If you close the current account, you lose the interest rate for the whole year.

Otherwise, more MSEers would be collecting the £100 "leaving incentive". But you can't have both that and the Regular Saver.

Thank you all for suggestions.

Reading following term and condition via the link kindly provided by Alanq

hold a FD mortgage, credit card, personal loan, savings account (*excludes Regular Saver Account), First Directory, or FD car or home insurance policy;

I might be able to keep both account in FD. By holding a saving account, a customer does not have to pay £10 Banking fee.

Got it, thanks a lot.

pqrdef

That's it. Log in or phone and open an ordinary savings account. Have £1 in the current account for the opening deposit. You don't have to keep paying in.

The interest on the RS should appear overnight 28th/29th.

Later on the 29th you'll be allowed to start a new RS online. Have £300 ready in the current account for the first payment. The SO will be set up automatically before the 2nd payment.

Overnight 29th/30th the balance in your old RS should be moved to the other savings account. The old RS is then empty and useless and effectively closed and will go away automatically, eventually.

alanq

version2014 wrote: »

Is that right, after one year..you can simply open it again and get 8% again?

You can only have one RS at a time. Once the interest has been paid you no longer have a RS so you are free to open a new RS. Sadly you have to restart from a zero balance you can't roll over one year's account into another.

bertrand_jin

alanq wrote: »

You can only have one RS at a time. Once the interest has been paid you no longer have a RS so you are free to open a new RS. Sadly you have to restart from a zero balance you can't roll over one year's account into another.

Thanks a lot! Will definitely follow your elegant method to restart regular saving.

version2014

pqrdef wrote: »

That's it. Log in or phone and open an ordinary savings account. Have £1 in the current account for the opening deposit. You don't have to keep paying in.

The interest on the RS should appear overnight 28th/29th.

Later on the 29th you'll be allowed to start a new RS online. Have £300 ready in the current account for the first payment. The SO will be set up automatically before the 2nd payment.

Overnight 29th/30th the balance in your old RS should be moved to the other savings account. The old RS is then empty and useless and effectively closed and will go away automatically, eventually.

This is brilliant and is just what I was wanting to hear.

Also if you switch they give you £125 I believe ?