first direct praise and info require

leeroy2009

opened 1st direct current account for the £125 switch


card arrived in 48 hours - truly amazing


now, this free £250 overdraught, are there any usage fees for this, never used a overdraught before. like can I use the overdraught and basically only pay it back if I was to ever close the account?

Mr_Goodkat

The £250 overdraft (not overdraught) is interest free so as long as you do not go over it there are no charges payable.


First Direct do however charge £10 per month for banking with them after six months unless you meet the exemptions - Banking with first direct usually costs £10 a month, but you will not be charged this fee for the first six months from account opening, when you pay in at least £1,000 to your 1st Account each month, or maintain an average monthly 1st Account balance of £1,000, or you hold a selected first direct additional product.


If you purely open the account, pocket the £125 plus £250 OD and never use the account they may decide they don't want your custom.


If you fund the account on a regular basis then you should be ok but remember all overdrafts are repayable on demand!

inspireme247

Mr_Goodkat wrote: »

...or you hold a selected first direct additional product.

The Regular Saver product is excluded.

leeroy2009

cheers, I opened it for the switching bonus and the 6% regular saver, which I believe stops the monthly fee been charged

Mr_Goodkat

leeroy2009 wrote: »

cheers, I opened it for the switching bonus and the 6% regular saver, which I believe stops the monthly fee been charged

No, the regular saver is excluded from accounts that provide the fee waiver!

leeroy2009

ok ill just cycle 1k through it each month, unless another one of the saving products waives the fee.

inspireme247

Get Everyday e-Saver and put £1 in it. That will waive the fee.

TartanSaver

Mr_Goodkat wrote: »

If you purely open the account, pocket the £125 plus £250 OD and never use the account they may decide they don't want your custom.

If you fund the account on a regular basis then you should be ok but remember all overdrafts are repayable on demand!

Does this actually happen in the real world? I've been wondering what the risk of this is. I pay £300/mo into FD by standing order, which then transfers to Regular Saver by another standing order a few days later. I use a £1 e-saver to avoid the fee. Apart from the £300, the account is permanently £250 overdrawn.

robotrobo

TartanSaver wrote: »

Does this actually happen in the real world? I've been wondering what the risk of this is. I pay £300/mo into FD by standing order, which then transfers to Regular Saver by another standing order a few days later. I use a £1 e-saver to avoid the fee. Apart from the £300, the account is permanently £250 overdrawn.

i do not use the overdraft myself.

but like inspire as stated , pay £1 only into a e account & all costs are exempt , including the £1500 after the initial deposit

Mr_Goodkat

TartanSaver wrote: »

Does this actually happen in the real world? I've been wondering what the risk of this is. I pay £300/mo into FD by standing order, which then transfers to Regular Saver by another standing order a few days later. I use a £1 e-saver to avoid the fee. Apart from the £300, the account is permanently £250 overdrawn.

Yes in the situation I have set out it could happen as usually there are terms and conditions relating to the regular funding of the account when you are within your OD.


In your case you are living in the £250 OD but you are pumping £300 per month into the account then into the regular saver so they could easily recover the £250 OD from you through offsetting if required.