Is First Direct's Bonus Savings really worth it?

Jlawson118

I've had the bonus savings for around two years now, I did like it because it encourages me not to withdraw from the account although the rate has dropped significantly since the whole Brexit scenario and is down to 0.4%. I also have their Cash ISA which is really good at 0.9%. I earned quite a lot of interest before now when it was at 1.30%.

It's been a while since I've had any money to tuck away and save up, but I'm happy to say that I'm at a point (Touch wood) where I can start saving again. I generally save up for rainy days and I usually like to save up to go away in the Summer time on a few days away in Europe or something. I'm considering putting my rainy day fund in my ISA, and perhaps use my bonus for holiday savings. Although with the amount of interest on my ISA, is it worth even using the Bonus account?

And I'll just add here that I'm interested in the regular saver that they offer with the 5% interest rate, I probably could squeeze the full £300 per month although the only thing that puts me off is that if I need to access that fund, I wouldn't be able to. But I'm still thinking about it

YorkshireBoy

Is there any reason why you don't save the lot* in Nationwide's two 5% products, taking a total of £8.5K over the next 12 months, £2.5K of it fixed and the rest variable? That's 5-10 times what you'll get in First Direct's Bonus Saver & 'standard' ISA...and all of it instant access!


* Except maybe that which you put into a HTB ISA.

Jlawson118

YorkshireBoy wrote: »

Is there any reason why you don't save the lot* in Nationwide's two 5% products, taking a total of £8.5K over the next 12 months, £2.5K of it fixed and the rest variable? That's 5-10 times what you'll get at First Direct...and all of it instant access!


* Except maybe that which you put into a HTB ISA.

I did join Nationwide a number of years ago but I just couldn't get to grips with their internet banking, there's not many branches around my local area (Although many are closing down for most banks anyway)

And adding to that, I probably won't be able to afford £1000 per month. I might be able to pay in up to £500 ish at a push.

Plus you know me with banks..I don't want to be joining any more :rotfl:

Superscrooge

According to the T&C's you can get access to your money in a FD regular saver. It just means they will close the account and only pay interest at 0.05% instead of 5%

Jlawson118

Superscrooge wrote: »

According to the T&C's you can get access to your money in a FD regular saver. It just means they will close the account and only pay interest at 0.05% instead of 5%

Really? I thought I once read that there's a fee to pay. Is the fee just the interest reduction then?

YorkshireBoy

Jlawson118 wrote: »

And adding to that, I probably won't be able to afford £1000 per month. I might be able to pay in up to £500 ish at a push.

Poor excuse! You'd pay £500 in, out, and in again, thereby meeting the £1K requirement. Should take, what, 3 minutes once per month?

Superscrooge

Jlawson118 wrote: »

Really? I thought I once read that there's a fee to pay. Is the fee just the interest reduction then?

No mention of fees, just 0.05% interest instead of 5% if you close the account before it matures

http://www1.firstdirect.com/1/2/savings-and-investments/savings/regular-saver-account#product-info

Jlawson118

YorkshireBoy wrote: »

Poor excuse! You'd pay £500 in, out, and in again, thereby meeting the £1K requirement. Should take, what, 3 minutes once per month?

I forgot there's that way of doing it :rotfl:

katejo

So in 'real practical terms' you don't have access. In comparison my regular saver at TSB allows me to withdraw money without any penalty. I actually have a regular saver with both TSB and FD.

Kernel_Sanders

Jlawson118 wrote: »

I also have their Cash ISA which is really good at 0.9%.

Why would you think that when your capital + interest will be worth less (in real terms) than the capital you started with in a year's time?

Jlawson118

Kernel_Sanders wrote: »

Why would you think that when your capital + interest will be worth less (in real terms) than the capital you started with in a year's time?

I try my best to save for a rainy day, and if that rainy day comes then I have to use it as such. I'm having car trouble at this moment in time too, so if anything happens with that, then I feel sometimes I may have to dip into my savings.

If nothing happens until next year, then great! But I can't see into the future. It'd be great if I could :rotfl: