MSE News: First Direct opens current account to lower incomes

Former_MSE_Jamie

"First Direct has widened the availability of its highly-rated current account to those earning from £13,500 a year ..."

Read the full story:

First Direct opens current account to lower incomes



Click reply below to discuss. If you haven’t already, join the forum to reply. If you aren’t sure how it all works, read our New to Forum? Intro Guide.

innovate

Has this been filed in the wrong section?

penrhyn

O dear, not sure I want to bank alongside poor people, it would be like shopping in the Asda, whatever that is.:D

Former_MSE_Helen

Thanks innovate - this discussion has now been moved to the Budgeting and Bank Accounts thread.

EarthBoy

This story is a complete nonsense. First Direct have never had a minimum salary requirement for customers. They only have a minimum funding requirement to avoid the £10 monthly fee. However, it is so easy to avoid this fee that I would be surprised if any customers actually pay it. All you need to do is open a savings account with £1 and let it sit there for ever and you don't pay the fee, no matter how small your income.

Martin Lewis/Money Saving Expert, however, has continually misrepresented the facts for years and continues to lie that you need a minimum salary to bank with First Direct.

I don't earn anywhere near the £23,000 which he claims to be the present minimum customer salary but I have banked with them for years and never paid a penny in charges or fees. When are we going to get some responsible journalism from this site?

innovate

The article doesn't actually mention the word "salary" though there is mention of "income", and a "monthly income requirement" is mentioned on the main site. MSE are just using the verbage from the First Direct site. If you want to complain about the words used, you should complain the bank.

Apart from that: anyone interested in any bank account shouldn't go by what some journalist (or a bunch of forumites) has written, but should do their own research into the T&Cs and decide based on such research whether the account is for them or not.

alanq

I wonder if this news indicates that FD is becoming more relaxed about who it allows to be a customer. Putting £1 into a savings account avoids the monthly charge once an account has been opened. However, before that, one has first to persuade the bank to allow one to open an account and the bank has the option to refuse anyone because of their low salary/income (among other reasons).

dalesrider

EarthBoy wrote: »

This story is a complete nonsense. First Direct have never had a minimum salary requirement for customers. They only have a minimum funding requirement When are we going to get some responsible journalism from this site?

Those switching to First Direct will only need to deposit a minimum of £1,000 a month, down from the previous £1,500.
This is the equivalent monthly income for most, after tax is deducted, of earning £13,600 a year, taking into account April's tax changes. The previous annual figure was £23,100

Its just MSE assuming (see sig :rotfl:) that the funding ment that is how much you were expected to be earning.

Seems MSE has also got it before FD have updated their site....

Our charges

Banking with first direct usually costs £10 a month, but we'll waive the fee if you pay in at least £1,500 to your 1st Account each month, maintain an average monthly 1st Account balance of £1,500, or hold a selected first direct additional product. Take a look at our interest rates and charges section for more details of other eligible accounts

Opps.....

Pincher

I have been with First Direct for over 20 years.

I don't remember having to send pay slips,
so if you just say you earn £25k on your application form,
all they can do is a credit check.

Obviously the low income will be missing payments, unable to maintain minimum balance, go into overdraft, etc. Hopefully the penalty charges will keep my free banking going.

innovate

dalesrider wrote: »

Seems MSE has also got it before FD have updated their site....

Bit careless of Mark Mullen, CEO of First Direct, to say "We now feel the time is right to open our doors a little wider" and not have his site updated before he goes public?

juanmanuelmarquez

its mainly emphasised about salary due to when you switch to claim the £100, they ask for a salary to be deposited in and if you dont have a salary or have a lower salary then you dont get the £100 switch incentive and plus you get charged unless you have a savings account, but regardless of savings account you still dont get £100 unless you switch you salary of £1k a month as well as 2 DDs.