First Direct Regular Saver - Sums!!

fozziebeartoo

I am hoping someone can help me do the sums and work out if moving some money is worth doing please.

I have some money in a Halifax Saver accout earning 1.6% (I am a basic rate tax payer).

I am thinking of opening a First Direct account (just putting in £1000 to avoid the fees) in order to qualify for a Regular Saver account with them (the 6% one).

But how do you work out the sums???

I would lose 1.6% on £1000 but gain 6% (before tax) on the reguar saving of £300 per month, that I would be drip feeding (am I getting the jargon right )???? from the 1.6% account.

Btw the reason I want to do the £1000 into the First Direct and not my pension each month plus DD's out, is because I am in the process of setting up the Santender123, so dont have another "income" to fund another current account.

If someone could possibly explain the maths formula to me (in words of one syllable preferably ), of how to work out interest, I am thinking I will be better able to research and make better choices.

Thanks very much for any help and apologies if what I have asked, makes no sense

MoneySaverLog

£1 in a FD savings account negates the need to pay in £1,000 per month. Also the £1,000 only needs to be in the account for 1 second for it to count too.

EarthBoy

If you open a savings account with FD, even if you only put £1 in it, then you don't need to pay the monthly fee, so you can keep your £1000 elsewhere. You will need to fund the account to earn the joining bonus of £100, and you will need to credit at least £300 monthly afterwards to cover the regular saver, because you can only pay into the regular saver from your FD current account (1st account), they won't accept credits into the regular saver direct from any other account.

fozziebeartoo

Wow - super quick reply, thank you!!

I cannot open a FD Regular Saver without a FD current account.

They said I can just put in (and keep in) £1000 to the current account (that negates the need for £1000 per month)......

When you say £1 in a FD savings account, do you mean seperate to the regular saver? I didnt look at other account options.....

MoneySaverLog wrote: »

£1 in a FD savings account negates the need to pay in £1,000 per month. Also the £1,000 only needs to be in the account for 1 second for it to count too.

fozziebeartoo

Thank you!!

I didnt mind NOT getting the £100 incentive if I could avoid the monthly funding issue, but I didnt notice the regular saver needed to come from the current account.

Great point, thank you for making that clear to me!

EarthBoy wrote: »

If you open a savings account with FD, even if you only put £1 in it, then you don't need to pay the monthly fee, so you can keep your £1000 elsewhere. You will need to fund the account to earn the joining bonus of £100, and you will need to credit at least £300 monthly afterwards to cover the regular saver, because you can only pay into the regular saver from your FD current account (1st account), they won't accept credits into the regular saver direct from any other account.

ColdIron

Check out the Regular Saver Calculator, try the drip feed option
http://www.moneysavingexpert.com/savings/best-regular-savings-accounts#calculator

fozziebeartoo

Brilliant - thanks very much!!

ColdIron wrote: »

Check out the Regular Saver Calculator, try the drip feed option
http://www.moneysavingexpert.com/savings/best-regular-savings-accounts#calculator

MoneySaverLog

Yes the savings account needs to be a separate savings account other than the regular saver.

Good point about the joining bonus, if you want that you'd have to pay in the £1,000 but I believe you can take it straight out again :-) Was not eligible for the bonus myself being a previous customer of theirs.

Vortigern

As others have said: you pay in £1000 per month but you DON'T have to leave it there.

So pay £1000 per month into first direct's current account. £300 of that then goes to first direct's regular saver. The remaining £700 could be transfered to Santander to satisfy the funding requirement for the 123 account.

If you open a joint current account with FD, each of the joint account holders can have a regular saver.

nat21luv

Why would you turn your nose up at £100 if your that keen on saving/getting the best rates? The £100 is more than you would earn in the Regular saver at 6% on £300pm for 12 months(£94 after tax) I Only know this because I opened the reg saver a few days ago and read the small print with a bit of clever manoeuvring of money and that's £100 free making it's way to you.

fozziebeartoo

Like I said in my original post, I am in the process of opening the Santander 123 so that will "use up" my pension being paid IN and my DD's coming out.

FD said on the phone I need £1000 being paid in every month and DD's coming out to qualify for the one-off £100.

And I probably wont have £1000 left over in Santander 123 to pay into the FD every month.....

So cant see how I could qualify for the FD £100????

But please tell me if you can!

nat21luv wrote: »

Why would you turn your nose up at £100 if your that keen on saving/getting the best rates? The £100 is more than you would earn in the Regular saver at 6% on £300pm for 12 months(£94 after tax) I Only know this because I opened the reg saver a few days ago and read the small print with a bit of clever manoeuvring of money and that's £100 free making it's way to you.