MSE News: First Direct doubles interest on regular saver to 7% – how to get the new rate

ashteadgirl

ColdIron said:

ashteadgirl said:

Sparky95 said:

ashteadgirl said:

isasmurf said:

ashteadgirl said:

Mine matured Sunday 30th. Shows interest paid but still a regular saver and can not access it. Only regular saver I have ever had that appears to mature so very slowly, Not very impressed at all. 

I'm guessing you do not have a savings account open with FD? If you don't then there is nowhere for the maturity balance to go and the account will be frozen on maturity and go into the work flow for FD to open a savings account to move the balance in to. These delays can usually be avoided by having an open savings account at maturity. When you already have an open savings account then the balance will usually be transferred and regular saver closed on maturity day.

Isasmurf, absolutely correct no savings account open. Other institutions manage to rename/rebrand account overnight. Thought FD should be able to have done it by now. May ring later today.  

I'm in exactly the same situation and not too happy with my funds stuck in account paying 1.3%. 

Very old fashioned system for newish bank.

Newish?

First Direct was formed on 1 October 1989 by Midland Bank

Did not realise they were that old.

intalex

They’ve just not evolved to keep up with times, have to assume lack of investment in more systemisation / automation.

Just tried to use an existing payee to set up a standing order, and surprisingly no option to do so, it requires re-entering all the account details again and saving it again as a (duplicate) payee. Much more seamless to do from my HSBC a/c using an existing payee.

Millyonare

As others have said... give First Direct a call.

Takes 2mins for them to "unfreeze" the matured Regular Saver and shift the funds to one's current account or basic saver. Very easy and very fast.

But, as others mention, why FD cannot do the "close and shift" automatically on the last day of maturity (for 100% of everyone) is a mystery.

FD need to up their game.

Rich1976

Does it really matter whether it the funds are moved on the same day or a day or two later? 

Reading these comments I really do not understand what all the fuss is about. There are more important things in life to get irritated about surely?

Millyonare

Every day lost is free money lost.

Over an 80-year lifetime, the losses in lost interest will be huge, tens of thousands of pounds.

Middle_of_the_Road

ColdIron said:

ashteadgirl said:

Sparky95 said:

ashteadgirl said:

isasmurf said:

ashteadgirl said:

Mine matured Sunday 30th. Shows interest paid but still a regular saver and can not access it. Only regular saver I have ever had that appears to mature so very slowly, Not very impressed at all. 

I'm guessing you do not have a savings account open with FD? If you don't then there is nowhere for the maturity balance to go and the account will be frozen on maturity and go into the work flow for FD to open a savings account to move the balance in to. These delays can usually be avoided by having an open savings account at maturity. When you already have an open savings account then the balance will usually be transferred and regular saver closed on maturity day.

Isasmurf, absolutely correct no savings account open. Other institutions manage to rename/rebrand account overnight. Thought FD should be able to have done it by now. May ring later today.  

I'm in exactly the same situation and not too happy with my funds stuck in account paying 1.3%. 

Very old fashioned system for newish bank.

Newish?

First Direct was formed on 1 October 1989 by Midland Bank

Newish to me, I've got shoes older than that.

eskbanker

Millyonare said:

Every day lost is free money lost.

Over an 80-year lifetime, the losses in lost interest will be huge, tens of thousands of pounds.

How would you manage to lose at least £250 worth of interest per year, simply from a bit of delay accessing the proceeds at maturity?  Unless their rates change significantly, you can't even earn £250 worth of interest in one of these across the whole year....

ashteadgirl

Rich1976 said:

Does it really matter whether it the funds are moved on the same day or a day or two later? 

Reading these comments I really do not understand what all the fuss is about. There are more important things in life to get irritated about surely?

That lost interest is more valuable to me than FD and closing an account and not even mentioning that not paying interest when rate quoted on newly updated statement page is unforgiveable in my books. How much do they make on people not noticing/challenging. On principle will not let them get away with it.

Band7

ashteadgirl said:

On principle will not let them get away with it.

How will you achieve that? And when?

FishInGlass

I already had a savings account from a previous maturing FD regular saver. The latest one matured on the 2nd May. Yesterday the money was available in my regular saver. I transferred out all bar £300 which I left in my FD 1st Account and requested a new regular saver. On checking today it says the £300 was transferred to my new regular saver. So 24 hours start to finish (admittedly on working days). Still not as quick as some other banks but no too shabby either especially as I'm not aware of a better regular saver return anyway.

If you don't have a first direct savings account already I would suggest setting one up in advance of the regular saver maturity in order to make the process as seamless as possible given FD's way of working.