First Direct's 7% Savings Account

User36750

masonic said:

User36750 said:

Administer (set up the monthly payment of £300, make sure it goes in the first time)

I suppose you've never held one, so you wouldn't know the process, but with this account First Direct sets up the monthly payment based on the amounts you specify during the application. Same with other HSBC group regular savers.

Yes, but I have to set up the monthly payment to the First Direct account

User36750

However, I suppose a lot of this is moot point.

For example, I have £7,000.
In Chase's 2.7% account, I am getting 2.7% on that whole £7000, which is nigh on £15 a month.
If I used this money to drip into the First Direct account, that would mean I'd get less in Chase interest, which is about £180 a year (although this will go up as I continue to regularly save into it).

User36750

ColdIron said:

User36750 said:

surreysaver said:

User36750 said:

Thanks all.

Not sure it's really worth it for £135ish.

But thank you for showing workings out too!

What would make it worth it?

At least £200.

A 10% regular saver? Good luck with that

I answered the question that was asked.
I didn't expect a 10% saver anywhere around, so no luck required.

User36750

Stargunner said:

User36750 said:

Reg_Smeeton said:

OP is obviously too wealthy to bother with picking up an easy £130 (ish) or indeed to do their own calculations 

No, I just don't think it's worth the effort it would take to:
Set up accounts (we're on longer members of First Direct, so would need to set up their account first)
Administer (set up the monthly payment of £300, make sure it goes in the first time)

Remember to put everything back when the year is over.
Close the accounts afterwards.

I did the whole thing one evening on my phone,  whilst sitting watching tv. Was no effort at all and it was very quick to complete. 

It was effort - you had to do things.
It's too much effort for me for not very much gains - as above, I will loose out elsewhere if I opted for this savings account.
Remember, a new FD person has to go through taking photos of driving licences or passports, then this or that - creating three different passwords, waiting for security things to be emailled and text...  I understand why but it's a lot of faff.
Maybe some people are happy to jump through the hoops for £135.  I'm not.  And that's okay.

ColdIron

User36750 said:

that would mean I'd get less in Chase interest, which is about £180 a year

But more in the RS. 7.00% is a lot more than 2.71%

Try the Drip feed option

https://www.moneysavingexpert.com/savings/regular-savings-calculator/

But you know best

AmityNeon

User36750 said:

However, I suppose a lot of this is moot point.

For example, I have £7,000.
In Chase's 2.7% account, I am getting 2.7% on that whole £7000, which is nigh on £15 a month.
If I used this money to drip into the First Direct account, that would mean I'd get less in Chase interest, which is about £180 a year (although this will go up as I continue to regularly save into it).

7% is nearly 160% greater than 2.7%, far more than double the interest for regular savings.

The irony is that you've essentially wasted more time thinking and discussing why you'd rather not do two out of the three things involved in doing it.

surreysaver

User36750 said:

Stargunner said:

User36750 said:

Reg_Smeeton said:

OP is obviously too wealthy to bother with picking up an easy £130 (ish) or indeed to do their own calculations 

No, I just don't think it's worth the effort it would take to:
Set up accounts (we're on longer members of First Direct, so would need to set up their account first)
Administer (set up the monthly payment of £300, make sure it goes in the first time)

Remember to put everything back when the year is over.
Close the accounts afterwards.

I did the whole thing one evening on my phone,  whilst sitting watching tv. Was no effort at all and it was very quick to complete. 

It was effort - you had to do things.
It's too much effort for me for not very much gains - as above, I will loose out elsewhere if I opted for this savings account.
Remember, a new FD person has to go through taking photos of driving licences or passports, then this or that - creating three different passwords, waiting for security things to be emailled and text...  I understand why but it's a lot of faff.
Maybe some people are happy to jump through the hoops for £135.  I'm not.  And that's okay.

And how much money are you earning on here chatting about it? The amount of time you've spent reading and answering these messages you could have opened your First Direct account (its not as onerous as it used to be)

ColdIron

User36750 said:

surreysaver said:

User36750 said:

Thanks all.

Not sure it's really worth it for £135ish.

But thank you for showing workings out too!

What would make it worth it?

At least £200.

Much more than £200 with the RS using the drip feed method above. But you won't, you seem to have dug your heels in

But that's OK

Albermarle

AmityNeon said:

User36750 said:

Reg_Smeeton said:

OP is obviously too wealthy to bother with picking up an easy £130 (ish) or indeed to do their own calculations 

No, I just don't think it's worth the effort it would take to:
Set up accounts (we're on longer members of First Direct, so would need to set up their account first)
Administer (set up the monthly payment of £300, make sure it goes in the first time)

Remember to put everything back when the year is over.
Close the accounts afterwards.

I used to have an account with First Direct and wanted to re-apply, and their website recommends former customers call instead of applying online (app only now). How convenient I thought...

Except my surname has since changed, so they would have to post a form for me to complete, which I'd have to return along with certified copies of the relevant documents, and I should also include a cover letter informing them I was a former customer wishing to open an account again. I asked if I could just apply as a new customer; "no".

🤔

I just re-downloaded the app and applied as a new customer, at 8 PM in the evening. 15 minutes later, I was registered with a new account number and sort code, fully accessible via mobile and online banking. I transferred £300 and immediately applied for the Regular Saver, although I was expecting to wait at least several working days for it to process considering previous reports of delayed openings. To my pleasant surprise, the next morning, the Regular Saver was already open and funded, and the Standing Order had been automatically created.

Sometimes the burden of overthinking can weigh you down.

We have a joint account with FD for household bills. I applied for the regular saver, it took about 4 days to get going.
My OH did the same but nothing happened. It took a couple of messages and phone calls to eventually get it started.
No idea why, just luck of the draw I suppose.

User36750

ColdIron said:

User36750 said:

surreysaver said:

User36750 said:

Thanks all.

Not sure it's really worth it for £135ish.

But thank you for showing workings out too!

What would make it worth it?

At least £200.

Much more than £200 with the RS using the drip feed method above. But you won't, you seem to have dug your heels in

But that's OK

Someone calculated above - and it even says on the FD website - that you get ~£135 at the end of the 12 month term.
So not £200.
And no, having two or three different accounts doesn't count...