First Direct 8% Regular Saver Nov 1st

mary

As from Moneyextra website today:

First direct is to reshape its current account and savings products on November 1st to help customers earn more money on their savings rather than 'small change' on their current account.
Following extensive customer research, the bank is to stop paying interest on its current accounts and instead reinvest in what the research showed customers actually wanted: a better deal on savings and overdrafts. The bank will also offer all customers free red alerts by text message to help them avoid going overdrawn or over their overdraft limit.
first direct currently has two current accounts, Cheque account and Bank account, which pay 0.10% and 2.00% AER respectively. Its customers are split evenly between the two accounts. From November 1st, first direct will merge these accounts into the 1st Account.
The new account won't pay credit interest but in return the bank will give a new no-strings instant access savings account, called Everyday e-Saver, paying 5.5% AER. Customers can set up an automatic monthly sweep to move money from their 1st Account to their Everyday e-Saver, to maximise the amount they earn from their savings.
Also to be made available is a new Regular Savings account paying 8.00% AER fixed for a year with customers allowed to save between £25 and £300 a month.
Meanwhile, for overdrafts, where applicable, the first £250 of overdraft will be interest-free.
The bank is also introducing a new incentive to customers joining it. Any new customer opening a 1st Account from November 1st who is not wholly satisfied after six months can claim £100. first direct's easyswitch team will help them move to another provider. The service guarantee replaces the bank's previous joining incentives.
20 September 2007

zaphod

I've been with FD since the start & up to now have had few complaints, but this has an 'Ingian' feel to it for me.
Headline the new 8% reg. saver account, (which offers little in reality) whilst lowering the rate on the e-saver ........ I assume the old will be phased out unless some of us get nasty? ......

It may be time to go after all these years....

So it's:- Hello Nationwide & what is your percentage subprime exposure please?

& I'm at the age when I want a decent return and some peace:mad:

Secret_Wookie_2

Its disapointing to see that the products now on offer from FD are actually worse than their parent company HSBC where they offer a 6.25% AER Online Saver and up to 10% on Regular Savers.

Looking at their Savings range I can't see why anyone would want to Save with them.

allan2006

ive got a first direct current and esaving account along with the same at nationwide, I want to close either firstdirect or nationwide but im not sure which is best??

Is nationwide at risk from this subprime thing like nrock was? if this is so then maybe firstdirect with the huge backing of hsbc???

gt94sss2

allan2006 wrote: »

ive got a first direct current and esaving account along with the same at nationwide, I want to close either firstdirect or nationwide but im not sure which is best??

I would chose based on your own experience which gives you the best interest rates and/or customer service - depending on what is important to you.

Is nationwide at risk from this subprime thing like nrock was? if this is so then maybe firstdirect with the huge backing of hsbc???

I wouldn't worry about this.. but if you choose First Direct keep a Nationwide account with £100 in open - just i case they ever decide to become a bank themselves..

Regards
Sunil

mary

Well my "Bank Account" which I opened 2/3 weeks ago, has now converted into a "1st Account" as of today.

So it would appear you have to maintain £1,500 in the !st account, from which you would then feed into the 8% Regular Saver. But of course you don't get any in-credit interest on your £1,500.

noh

mary wrote: »

Well my "Bank Account" which I opened 2/3 weeks ago, has now converted into a "1st Account" as of today.

So it would appear you have to maintain £1,500 in the !st account, from which you would then feed into the 8% Regular Saver. But of course you don't get any in-credit interest on your £1,500.

There's no need to maintain a balance of £1500. The terms and conditions state:-
"banking with first direct usually costs £10 a month, but it's free when you pay in at least £1,500 to your 1st Account each month, hold a selected first direct additional product, or maintain an average monthly 1st Account balance of £1,500"

Simply opening a savings account with £1 is all you need to do to avoid charges.

Nigel