First Direct regular saver

stuarta99

What's the thoughts here in First Directs regular saver account at 7%?

I've got around 25k sat in my recently switched Nationwide account and I'm tempted to move it to their standard savings account, then open a FD current account with £1 and setup a £300/month DD to the regular saver....assuming that works.

Bigwheels1111

Read the other threads about it.

https://forums.moneysavingexpert.com/discussion/6406944/mse-news-first-direct-doubles-interest-on-regular-saver-to-7-how-to-get-the-new-rate/p1

jak22

There are already quite a few posts as 7% sounds a lot - but it's what to do with the 25K that matters more - that can earn 8x in a year what £300 pm in the FD a/c will

masonic

The regular saver needs to be funded by a standing order from the FD current account. You'd need to set up another from Nationwide to FD current account to do as you suggest.

jaypers

You don’t need to move all of your money to FD. Keep it in the best paying accounts that suit your needs, maximising interest etc and just set up a standing order to pay £300 a month to your FD Current Account in time to service the Regular Saver monthly payment. That’s all I do. 

stuarta99

Ok thanks all. Hadn't read it properly yet and wasn't aware of funding from the current account but makes sense.

Just need to work out where's it best to put it. Reluctant to stash it all away for too long just in case I need it but then it's a lot to need in emergencies.

Band7

stuarta99 said:

Ok thanks all. Hadn't read it properly yet and wasn't aware of funding from the current account but makes sense.

Just need to work out where's it best to put it. Reluctant to stash it all away for too long just in case I need it but then it's a lot to need in emergencies.

If you want a regular saver with penalty-free access, have a look at the Club Lloyds RS. It pays 'only' 5.25% but you can pay in up to £400 a month, and there are some optional goodies that come with the Club Lloyds.

If you drip feed £300 on the first of a month from your Santander esaver, you get

• £147 in Lloyds
• £180 in FD

Only you will know whether the delta is of relevance / value to you.

If the Club Lloyds goodies are of value to you, it's overall better value than the FD RS.

You could also split your £300 between the FD and the Lloyds RS. Use the MSE RS calculator to work out the expected returns.

jimjames

stuarta99 said:

I've got around 25k sat in my recently switched Nationwide account and I'm tempted to move it to their standard savings account, 

Do you need it all in cash if as you say it's a lot to need in emergencies? If you have no plans or need for the money in the future then looking at a S&S ISA or pension might be worthwhile too - that's assuming those options aren't already covered.

stuarta99

jimjames said:

stuarta99 said:

I've got around 25k sat in my recently switched Nationwide account and I'm tempted to move it to their standard savings account, 

Do you need it all in cash if as you say it's a lot to need in emergencies? If you have no plans or need for the money in the future then looking at a S&S ISA or pension might be worthwhile too - that's assuming those options aren't already covered.

Yeah that's what I think I need to work out. Was thinking of an extension or car and use rather than loan but can't see either happening with current market

ZeroSum

Got text today

"Thanks for your Regular Saver application. Due to high demand, it's taking us a little longer to open the new accounts. We’ll message you when your account is open."

Why can't they be more like the online banks  where the account just opens after a few clicks.

Great customer service? Yeah, righto whatever 

Albermarle

When you apply it says it will probably take about three days due to high demand. I applied on last Wednesday and it was opened today.
No issue for me .