First Direct revamping current accounts

slates

The removal of the credit int on the new a/c wont effect me, as i spend most of my time in an o/d position so i will actually be better off..and also with the free texts coming back.

checkly

Don't leave FD - do what I did earlier this year and write to say that you are considering switching and that ANOther bank is offering such and such an incentive and can they match it!!

At the time one of the other banks (A&L I think) were offering £100 when you opened a current account. I quoted this, and said that I had been a loyal customer since FD started and got back a letter saying that they appreciated my custom and as a gesture would credit my account with £100.

Result!!

EagerLearner

I won't be leaving - to be honest as they say, savings accounts are for savings, current accounts are only for the balance you need for a few bills etc.

Anyone who keeps loads of money in a current account won't earn too much interest anyway. For the service I will still stay with FD.

However - won't use the eSavings account as even without the withdrawal penalty, as IceSave are still better.

Prob won't use the Sweep facility as I tend to be fairly good about savings etc.

Interesting idea about the £100in an e-mail to them - Halifax £100 incentive could work if mentioned?

john539

eslick wrote: »

important changes to your current account

In recent months we’ve been asking our customers what it’s like to bank with first direct. Whilst we loved to hear about the good stuff we also learned one or two things that weren’t so good.
You told us that you'd prefer banking to be fairer and more transparent. You also told us that you want more choice and better value. You don't like offers that come with strings attached and you'd prefer a life without unpleasant surprises.
Here it is in black and white

Many of you told us that you’d prefer better savings products than a very ordinary rate of credit interest on your current account balance. We currently pay 0.1% AER (gross 0.1% p.a.) on Cheque Accounts and 2.00% AER (gross 1.98% p.a.) on Bank Accounts. From 1 November 2007 we will no longer be paying credit interest on current accounts. We believe current accounts are for spending and saving accounts are for saving – so we’re launching a package of new products and services which we believe offer you better value.
So it’s goodbye to as little as 0.1% AER, for your current account. And hello to:

• the 1st Account: (From 1 November your current account will automatically move over to the new 1st Account. Your account number will stay the same, you don't need to do anything)
• our Innovative Sweep Facility
• the new Regular Saver
• the Everyday e-Saver - absolutely no strings attached
• free Text Message Banking for all our customers
• £250 Interest Free Overdraft
• improved Internet Banking.

We will be sending you full details in the post. In the meantime everything you need to know can be found at www.firstdirect.com/1st
Thank you for banking with first direct.
Mark Mullen,
Head of Marketing

Here's link to this announcement:

important changes to your current account
http://www.firstdirect.com/logon/ib_go_high.shtml

john539

Leaflet I had recently about the changes says that Overdrafts will be agreed for a period of 12 months & won't be continuous as at present.

Changes to our overdraft service from 1 October 2007

From 1 October 2007 you'll be able to request an overdraft either:

• formally, which is when you contact us in advance to set up an appropriate ovedraft limit for a period of up to 12 months, or
  
• informally, which is where you do not contact us in advance, and debits such as ATM withdrawals or cheques which you have issued, are presented to us for payment and there isn't enough money in your account, or your balance would exceed any formal overdraft limit. If we agree to the request, the overdraft wil be provided for 31 days. If another informal request is received within the same period, thie will be treated as a new request.

Introducing your 6 month waiver period

You won't have to pay an Arrangement Fee for any agreed overdraft request (formal or informal) provided we have not agreed to a request from you in the last 6 months.

For all other overdraft requests (formal or informal), we'll charge an Arrangement Fee of £25. This means an Arrangement Fee will only be charged if we agree to a formal or informal request from you more than once every 6 months.

Your overdraft limit

Your existing overdraft limit will continue to apply until the expiry date of your facility, so you don't need to do anything at this stage unless you decide you want to change your limit. We'll contact you nearer to your expiry date to discuss your ongoing requirements.

Your overdraft facility will then be reviewed each year thereafter. We'll contact you every year to discuss your ongoing requirements so we can continue to meet your lending needs in the best way for you.

The annual review of the Overdraft facility seems like an excuse to sell other products & to review(close) overdrawn/unprofitable accounts.

lolarentt

They used to pay 5.75% AER on e-savings account but it was rubbish because you lost a whole month's interest if you made any withdrawals in any month. (Therefore you might as well take the lot out and move it somwhere else even if you only wanted a small withdrawal.)

Has anyone read the small print with the new deal? They are pushing the e-savings account to be used in conjunction with the new current account but it's not worth while if you lose a month's interest every time you want to pull something out.

FD service is very good, real people in the UK who hear what you say!! I've also been with Bank of Scotland for many years, but their service has really gone to pot since they merged with Halifax and I wouldn't recommend them at all now.

gt94sss2

lolarentt wrote: »

Has anyone read the small print with the new deal? They are pushing the e-savings account to be used in conjunction with the new current account but it's not worth while if you lose a month's interest every time you want to pull something out.

The new 5.5% e-saver account is instant access with no penalties or other catches (like losing interest)

Regards
Sunil

rarrarrar

I agree that current accounts shouldnt try to be savings accounts, the new savings accounts pays a reasonable rate and with instant transfers within FD useful for storing short-term surplus funds.
Where FD scores highly is the lack of limit on how much you can transfer online without using CHAPS - most banks have a 10/15k limit. This makes it a useful hub if regularly moving savings around for the best deal.

holly90_2

Hello! This is my first post. I've joined this forum because I'm too embarrassed to ring up First Direct and admit that I don't understand the changes to their overdraft service!!! I'm SUPPOSED to be an intelligent person but I'm confused. For 15 years now, we've banked with them, and have taken comort from having a £250 fee-free overdraft facility to draw on whenever needed. I've been dipping into that quite a bit recently while bearing some additonal expenses relating to our youngest child's departure to Uni and I've found it very useful. I really don't understand this business about 'informal and 'formal' overdrafts. I'd never go overdrawn without asking first, but will I still be able to use that £250 or will that be gone from 1st October and will I have to ring up and ask each time I want overdraw by even the tiniest amount?

EagerLearner

Hi & welcome to the site - I'm guessing that an informal overdraft is the one they give you automatically (£250) and that a formal one is something that you arrange with them, if you need more than the automatic £250 they give you? Just a guess mind. Anyway, FD are so nice - give 'em a call and ask, I can't think of a nicer bank (where you will actually get a person not a system), won't take you a few seconds to ease your mind.