First Direct 3.5% regular saver

ccdorset

Hello,

I'm looking at doing what I can to improve the interest I earn on my savings.

I've seen the First Direct regular saver is offering 3.5%, but I don't have a current account with them.

It looks like I'd earn £68 in interest if I paid in the max £300 a month.

I'm debating whether it is worth me opening another current account just to get the regular saver.

I'd be interested to hear if others have done the same or whether it is generally deemed too much hassle?

Thanks :-)

jaypers

I’ve done similar, including First Direct. It’s no hassle, although bear in mind that some institutions including First Direct will cause a hard search on your credit file. Just something to bear in mind for anyone about to apply for a mortgage or similar, although again it’s not a huge thing. 

Jami74

ccdorset said:

I'm debating whether it is worth me opening another current account just to get the regular saver.

1) Open a 2nd bank account with your current bank
2) Open a bank account with First Direct
3) Switch the bank account in 1) to the First Direct account in 2)
4) Deposit £1000 and receive a £150 switch bonus
5) Open a regular saver and save £300 a month
 
Profit = £150 + £68.

 Only you know whether it's worth it. Probably, if you currently earn more than £218 for an hours work you'll decide it isn't.

Daliah

If you never had a First Direct account, it would be worth applying for one and making use of their £150 switch offer, with a donor account. https://www.moneysavingexpert.com/banking/compare-best-bank-accounts/

ccdorset

jaypers said:

I’ve done similar, including First Direct. It’s no hassle, although bear in mind that some institutions including First Direct will cause a hard search on your credit file. Just something to bear in mind for anyone about to apply for a mortgage or similar, although again it’s not a huge thing. 

Thanks for your reply. I am going to need to apply for a remortgage around September time, not sure if a three month gap between a hard search and remortgage application is long enough. Decisions decisions!

ccdorset

Sorry I should have mentioned, I have previously held a first direct current account, so unfortunately won't qualify for the £150 switch bonus. :-(

MX5huggy

Santander are offering 2.5% on £200 per month doing that x 2 can’t be bothered with opening the FD account. 

Olinda99

Also don't forget you are not earning 3.5% - you are earning 3.5% less what you could get for your money elsewhere without the regular saver hassle. 

Currently say 1.25% in a saver account so you are only earning an extra 2.25%. Also, my bet is that 1.25% will go up soon with base rate increases.

Bigwheels1111

What no go with a Chase account as only a soft search is done and you get 1.5% if you had the £3600 in there in one go you get £54 a year if my maths are correct.
Plus 1% back on debit card spending, first month £13.50 & £11.87 last month.
I think I will end up with over £120 just from spending.
Im making a payment to Octopus energy next week as a top up, If I get 1% back I’m stopping Direct Debit and will pay by card each month.
I fund 2 FD regular savers, me and the wife’s.

RG2015

ccdorset said:

Hello,

I'm looking at doing what I can to improve the interest I earn on my savings.

I've seen the First Direct regular saver is offering 3.5%, but I don't have a current account with them.

It looks like I'd earn £68 in interest if I paid in the max £300 a month.

I'm debating whether it is worth me opening another current account just to get the regular saver.

I'd be interested to hear if others have done the same or whether it is generally deemed too much hassle?

Thanks :-)

First Direct are rather OTT on account opening.

I recall having a telephone interview that lasted 30 minutes. They wanted multiple personal security questions and answers to possibly be used for future ID confirmation. Six months later I had forgotten so it's a good job I had them written down.

That said, 3.50% is worth the hassle, for me anyway.

PS It was 5% when I got my first one a few years back.

wiseonesomeofthetime

Bigwheels1111 said:

What no go with a Chase account as only a soft search is done and you get 1.5% if you had the £3600 in there in one go you get £54 a year if my maths are correct.
Plus 1% back on debit card spending, first month £13.50 & £11.87 last month.
I think I will end up with over £120 just from spending.
Im making a payment to Octopus energy next week as a top up, If I get 1% back I’m stopping Direct Debit and will pay by card each month.
I fund 2 FD regular savers, me and the wife’s.

I have a Chase account and Octopus Energy.

I have topped up my DD with debit card and did receive the 1% cashback.

Remember though, that currently the cashback is only for first 12 months of holding your Chase current account.

If you do not pay by DD to Octopus Energy, you may no longer qualify for the tariff you are on, or benefit from future available tariffs.

Unless you are on a really high useage amount or high DD for energy, you will not make big money paying Octopus by Chase debit card.

Anyway, this thread being about First Direct Regular Saver, I can say that I have one for fresh money, i.e. not being drip-fed, so the 3.5% AER is a nice reward atm. I should add though that I have had a FD current account for years and am not applying for credit/mortgage, so our circumstances (OP) do differ.

OP, if you were looking to drip-feed that £3600, I would suggest not worthwhile atm. Just my opinion, mind.