First Direct interest rate cuts from 18 October

[Deleted User]

We need to let you know about some changes we’re making to the interest rates on our Bonus Savings Account, which will take effect from 18 October 2016.


As you may know, on 4 August 2016 the Bank of England reduced its base rate from 0.50% to 0.25%. We know this isn't great news for savers, but even though our savings rates are not directly linked to the base rate, we've taken this time to review our savings accounts.

These are the changes we're making:

Bonus Savings
With Monthly Bonus Current Rate AER* New Rate AER* % Change
£1 - £100,000 0.75% 0.40% -0.35%
Over £10,000 0.25% 0.15% -0.10%

Without Monthly
Bonus Current Rate AER* New Rate AER* % Change
£1 - £100,000 0.15% 0.10% -0.05%
Over £10,000 0.15% 0.10% -0.05%

If you have more than £100,000 in your Bonus Savings Account, we'll pay the lower interest rate on the money above £100,000. For example, from 18 October 2016 if £150,000 is held, in any calendar month where no withdrawal is made, we'll pay 0.40% AER/gross on the first £100,000 and 0.15% AER/gross on the £50,000 above £100,000. If no withdrawals are made from the account during a calendar month we'll pay the rate 'with monthly bonus'. If during a calendar month a withdrawal is made we'll pay the rate 'without monthly bonus'.

You'll see that one of our Bonus Savings rates has reduced more than the base rate but we've tried to keep the account as competitive as possible. And to make sure you have enough time to think about what's right for you and your money, we're giving you two months' notice of the changes. You can view more information on our full range of savings accounts here.

badger09

I wonder how many [STRIKE]idiots[/STRIKE] people have £100k in First Direct earning 0.75%, soon to be 0.4%:cool:

[Deleted User]

badger09 wrote: »

I wonder how many [STRIKE]idiots[/STRIKE] people have £100k in First Direct earning 0.75%, soon to be 0.4%:cool:

I keep £1 in this account, only to avoid the monthly fee on the FD current account. Which I only keep open to benefit from the 6% Regular Saver. Complicated :eek:

capehorn

Cash ISA reducing from 1.3% to 0.9% from 18th October. This is listed as one of Martin's best buys for instant access (it's where my ISA is)[FONT=&quot][/FONT] so this might affect a few people here.

smamst

Oh dear, got most of my saving in a First Direct ISA, where to go now?

masonic

Deleted_User wrote: »

I keep £1 in this account, only to avoid the monthly fee on the FD current account. Which I only keep open to benefit from the 6% Regular Saver. Complicated :eek:

I must admit, I've not paid much attention to the T&Cs on this point, but the key features suggest you only need to hold a qualifying savings account. It seems I am able to hold one at zero balance (although I do meet the monthly funding requirement as well).

masonic

smamst wrote: »

Oh dear, got most of my saving in a First Direct ISA, where to go now?

Might I suggest ditching the ISA wrapper and enjoying the choice of high interest current accounts - possibly tax free due to the personal savings allowance?

Pincher

Sadly, First Direct is only good for the 6% Regular Saver, these days.

Once upon a time, the Eurocheque cheque book was fabulous for paying in Europe. Came with the cheque guarantee card, naturally.

bigadaj

Pincher wrote: »

Sadly, First Direct is only good for the 6% Regular Saver, these days.

Once upon a time, the Eurocheque cheque book was fabulous for paying in Europe. Came with the cheque guarantee card, naturally.

The world was your lobster, my son.

badger09

Deleted_User wrote: »

I keep £1 in this account, only to avoid the monthly fee on the FD current account. Which I only keep open to benefit from the 6% Regular Saver. Complicated :eek:

I keep £5 in mine:D

Last of the big spenders (or not) :rotfl::rotfl:

[Deleted User]

From FD Today:-

We've made
a mistake


Dear

We've noticed an error in one of the interest rate tiers for the Bonus Savings Account in the email we sent last week about changes to our savings rates which are effective from 18 October 2016.

Although there was an issue with the rate tier band descriptions, all the interest rates are correct. We're really sorry for this mistake, and because we want you to have the correct information, we're sending it to you again.

Bonus Savings Account
With Monthly Bonus Current Rate AER* New Rate AER* % Change
£1 - £100,000 0.75% 0.40% -0.35%
Over £100,000 0.25% 0.15% -0.10%

Without Monthly
Bonus Current Rate AER* New Rate AER* % Change
£1 - £100,000 0.15% 0.10% -0.05%
Over £100,000 0.15% 0.10% -0.05%
If you have more than £100,000 in your Bonus Savings Account, we'll pay the lower interest rate on the money above £100,000. For example, from 18 October 2016 if £150,000 is held, in any calendar month where no withdrawal is made, we'll pay 0.40% AER/gross on the first £100,000 and 0.15% AER/gross on the £50,000 above £100,000. If no withdrawals are made from the account during a calendar month we'll pay the rate 'with monthly bonus'. If during a calendar month a withdrawal is made we'll pay the rate 'without monthly bonus'.

We're here to help