First Direct £10 a month fee after 6 months..?

wallofbeans

Hi All,

My understanding of the First Direct bank account was that there was a £10 monthly fee but it was easily avoided. Although now I've looked at their website I'm confused!

They say:
"Is there a charge to bank with first direct?
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."

OK - so I won't be charged for the first 6 months, but do they mean that I will after 6 months? Even if I'm doing the things that cancel out the fee during the first 6 months?

Superscrooge

Yes there is a £10 Fee
Yes it is easily avoided
T&C's posted below

Banking fee
You must pay our £10 Banking fee for each month or part of a month that you hold a 1st Account unless we agree to waive the fee. If applicable, the fee will debit your account monthly in arrears.

Banking fee waivers
You will not have to pay the Banking fee:

for the first six months following account opening
for any month in which you:
pay into your account* (other than by internal transfer from another first direct account) a minimum of £1,000 or you maintain an average monthly balance on your account* of £1,000 (month means calendar month and we will work out the average monthly balance by adding together the end of day balances for each day during the month and dividing the sum by the number of days in the month) or
hold a first direct mortgage, credit card, personal loan, savings account (*excludes Regular Saver Account), First Directory, or first direct car or home insurance policy;

So you can pay in £1,000 per month (then immediately withdraw it if you like)
OR Keep an average monthly balance over £1,000
OR hold a first direct mortgage, credit card, personal loan, savings account (*excludes Regular Saver Account), First Directory, or first direct car or home insurance policy;[/I]

wallofbeans

Yeah, I got that.
But the T&C seem to indicate that those terms only apply for the first 6 months. I want to know what happens after that? Or are they saying you don't need to bother with anything for the first 6 months, and then after that you have to fulfil one of those criteria. It's not clear in the way it's worded.

And I've not heard any previous mention that the fee is waived for the first 6 months.

Futuristic

What doesn't make sense?

You will not have to pay the Banking fee:
for the first six months following account opening

Then they charge you £10/mo unless you meet the rest of the criteria

wallofbeans

Because the way they word it - I think it's the "when" - "you will not be charged this fee for the six months from account opening WHEN you pay in at least..." OK so there is a comma but it should be clearer and say "and then after that WHEN..."

It's that and the fact that on this site, there is no mention that the £10 fee is waived for the first 6 months. It's great that it is but because it hadn't been mentioned here I assumed I was reading it wrong at the First Direct site.

wallofbeans

Does this also mean that I could move to a First Direct account. Pay nothing. Get £150. And then six months in, move again and they'll give me another £100. So I just open the account, do nothing and make £250.

Is this what everyone is doing?

Also - I'm moving from an HSBC account, I'm hoping this doesn't count me out of getting the £150?

YorkshireBoy

wallofbeans wrote: »

Does this also mean that I could move to a First Direct account. Pay nothing. Get £150. And then six months in, move again and they'll give me another £100. So I just open the account, do nothing and make £250.

You don't do T&Cs particularly well do you? ...

_FD_leaving_present_T&Cs wrote:

You must have paid at least £1,000 a month into your bank account for six months

Is this what everyone is doing?

If they don't want the 6% regular saver, yes...I'd presume.

Also - I'm moving from an HSBC account, I'm hoping this doesn't count me out of getting the £150?

Do the switching incentive T&Cs preclude such a switch from qualifying?

wallofbeans

OK so if I do pay in at least £1000 per month for the first 6 months (even though I don't need to in order to waive the £10 monthly fee) then I can leave after that time and they'll give me another £100 on top of the £150 they already gave me for moving in the first place? And I can go somewhere else.

I don't think me being with HSBC is an issue. But like you said, I'm terrible at understanding T&C's! I need incredibly clear or my brain will almost always see the opposite to what is most obvious. Or take a really long way round to get to the obvious.

bobobski

The key word in the Ts & Cs is "or". Phone them if you're not sure. I called them about this and they said even if I completely switch current accounts but keep mine open for the regular saver, I won't be charged the £10 if I have nominal activity in my cr*ppy instant access savings account (a selected additional product). You pretty much have to do literally nothing with your account in order to be charged the £10.

YorkshireBoy

wallofbeans wrote: »

I'm terrible at understanding T&C's! I need incredibly clear

In my opinion the T&Cs for both the joining and leaving money are VERY clear. Indeed, they run to only 4 and 5 very short paragraphs respectively...

http://www2.firstdirect.com/1/2/banking/current-account?WT.ac=FSDT_Onsite_PWS_CUR_Acquisition_Tickleyourfancy£125_DR_Banking_Standard_CUR2330

FD should be commended for making them so clear and concise.

wallofbeans

bobobski wrote: »

The key word in the Ts & Cs is "or". Phone them if you're not sure. I called them about this and they said even if I completely switch current accounts but keep mine open for the regular saver, I won't be charged the £10 if I have nominal activity in my cr*ppy instant access savings account (a selected additional product). You pretty much have to do literally nothing with your account in order to be charged the £10.

But in order to get the £100 on leaving you need to pay in at least £1000 per month for 6 months. But I can move it straight back out again it seems.