First Direct Reg Saver

Milarky

I have been accepted for a FD 'first' current account (two and half years after they said 'goodbye' - so that's encouraging if it holds up!) and would now like to open a Regular Saver. My one concern is having my FD current account closed early causing the Regular Saver rate to be slashed. Last time there was a clause covering 'fixed term' products specifically which prevented closure of the Regular Saver simply due to the other account being closed by the bank. But this time I see no such clause in their voluminous terms and conditions (it may be there, of course!)

Can anyone shed more light?

Thanx

Oh, and I'd like to fund the SO to the RS (£300) from a non FD account whilst keeping a nil balance and having no formal overdraft with the FD account. Can I assume that a SO on the same day of the month into the current account (from lloyds, say) will cover this by relying on the 'try again' system working to avoid being charged etc?

tightfisteddave

T&C say...

"Interest is paid at a fixed rate for 12 months so long as you make the required 12 monthly payments to the account from your first direct 1st Account."

planteria

i dont think you can get round their terms as you want to...

but why can't you just use the FD CA to fund the FD RS and just keep it open for the term?

6% is a good rate in the current market.

Archi_Bald

It is unclear why they said (in your words) good bye to you two and half years ago, so not sure what is going on with your accounts with them.

Milarky

Archi_Bald wrote: »

It is unclear why they said (in your words) good bye to you two and half years ago, so not sure what is going on with your accounts with them.

I meant that they chose to close all my accounts with them at the time (giving 2 months notice) but they allowed the Regular Saver to remain open to term since there was a provision in the (then) T&Cs applying to 'fixed term' products that prevented the early closure that would have triggered a much reduced interest rate (the 'instant access' account rate)

As to asking for an overdraft of at least £300 to cover the SO, I could do this later I suppose, but in order to assist acceptance I didn't ask for an overdraft at the time of the application. It then occurred to me that if the only use of the account is to make a SO (not DD etc) payment then you don't require a current account overdraft any longer because banks will 'try again' at least a few hours after any crossing payment from outside is received (and whilst two separate SO's dated for the same day of the month should agree you can't say the same for a 'one day earlier' SO because it defaults to a later date anyway where it would fall on a w/e)

But whilst I checked what the current FD T&Cs say about the Reg Saver if other accounts are closed, condition '33.5' seems to say that those 'other' accounts may only be closed for some kind of legal/statutory or genuine account misconduct reason - so the Reg Saver - which refers back to this condition specifically - would only be closed early for essentially 'non-commercial' reasons. With HSBC (and to a lessor extent First Direct) there have been bulk 'commercial reason' closures of current account in the past, so perhaps they've had to tighten up grounds for closure because of regulators etc.

Point is, I haven't found that earlier condition that I mentioned and I wondered if anyone else could spot it?

planteria

but why not just Not Close anyway?

Milarky

planteria wrote: »

i dont think you can get round their terms as you want to...

but why can't you just use the FD CA to fund the FD RS and just keep it open for the term?

6% is a good rate in the current market.

I think you misunderstood. The SO would go into the FD current account on the same date (day of the month) for which the SO (for the same amount) from the FD current is set up. A crossing payment only, which would be reattempted later in the morning should the FD current not be 'in funds' when it initially attempts to make the SO transfer to the Reg Saver

YorkshireBoy

Disclaimer: Although I've had an FD current account before, it was a long time ago and I didn't have the regular saver. However...


I wonder if the SO from 1st Account to Reg saver is in fact an internal transfer? If it is, ie it doesn't go through the FP system, then I could envisage problems on weekends and Bank Holidays.


Perhaps someone else could confirm whether their payments are tagged SO or TFR, and whether they move on weekends/Bank Holidays or the next working day?

bsms1147

It's listed under my standing orders and on the online statements simply says '[My name] REGULAR SAVER' without stating what type of payment it is. When it was due to be paid on a day that didn't exist (29th feb), it paid out next working day (mon 3rd march). However the SO cannot be transferred, manually or via an account switching service, to another bank or provider.

noh

It is only paid on a working day.
Don't all FD current accounts come with a free £250 overdraft by default? You only need an additional £50 facility.

EarthBoy

YorkshireBoy wrote: »

I wonder if the SO from 1st Account to Reg saver is in fact an internal transfer? If it is, ie it doesn't go through the FP system, then I could envisage problems on weekends and Bank Holidays.

I believe that standing orders generally are not paid on weekends or bank holidays, even when they use the faster payment system. I can confirm that this is certainly the case with First Direct and Nationwide. In both cases, they are paid on the next working day instead.