First Direct 7% Linked Savings Account

bmcdonagh

I’ve just opened a First Direct bank account (mainly for the switch bonus) and decided to look at opening the linked savings account which offers a huge 7% interest.

I just wanted to make clear that you cannot make partial withdrawals on this account. It also looks as though the 7% lasts for 12 months only, and you then need to find a new home for your savings (at least, that’s how I read it).

Whilst this is still a great offer for someone saving for a long term goal, I think it’s worth mentioning and perhaps the main article in the website could mention the inability to make partial withdrawals as that may influence some people’s decision? 

Personally, I have minor savings that I keep as a sort or ‘house fund’ for maintenance that pops up during the year so I would expect to dip into it a few times a year. This savings account wouldn’t work for me. Just thought it worth mentioning.

Gers

bmcdonagh said:

I’ve just opened a First Direct bank account (mainly for the switch bonus) and decided to look at opening the linked savings account which offers a huge 7% interest.

I just wanted to make clear that you cannot make partial withdrawals on this account. It also looks as though the 7% lasts for 12 months only, and you then need to find a new home for your savings (at least, that’s how I read it).

Whilst this is still a great offer for someone saving for a long term goal, I think it’s worth mentioning and perhaps the main article in the website could mention the inability to make partial withdrawals as that may influence some people’s decision? 

Personally, I have minor savings that I keep as a sort or ‘house fund’ for maintenance that pops up during the year so I would expect to dip into it a few times a year. This savings account wouldn’t work for me. Just thought it worth mentioning.

It's a regular saver rather than anything else.

Regular Saver Account This savings account rewards you for being disciplined enough to not touch your money for 12 months.	7.00% AER/gross fixed for 12 months. Interest calculated daily and paid on 12 month anniversary of account opening.	Minimum £25.	Save from £25 to £300 per month for 12 months. If you save less than £300 in any month, you can carry over the difference to the following months - up to £3,600 per year.	Yes - 12 months.	No - withdrawal from this account is only possible by closing it.

eskbanker

bmcdonagh said:

I’ve just opened a First Direct bank account (mainly for the switch bonus) and decided to look at opening the linked savings account which offers a huge 7% interest.

I just wanted to make clear that you cannot make partial withdrawals on this account. It also looks as though the 7% lasts for 12 months only, and you then need to find a new home for your savings (at least, that’s how I read it).

Whilst this is still a great offer for someone saving for a long term goal, I think it’s worth mentioning and perhaps the main article in the website could mention the inability to make partial withdrawals as that may influence some people’s decision? 

Personally, I have minor savings that I keep as a sort or ‘house fund’ for maintenance that pops up during the year so I would expect to dip into it a few times a year. This savings account wouldn’t work for me. Just thought it worth mentioning.

It's a regular saver account, so is never going to be suitable for lump sums, although they can be drip-fed in from other accounts - if you want an account to dip into regularly then you need an easy access account instead.

The MSE regular saver article does make it clear that closure is the only way of accessing the money early:

First Direct's regular saver pays a massive 7% interest – the top rate of all savings accounts. The rate's fixed for a year and you can save up to a decent £300/month, though you can't make withdrawals – if you do, the account will be closed and you'll only get a paltry 0.65% interest.

[...]

Provider	Rate (AER)	Max monthly deposit	Can you skip months?	Penalty-free withdrawals allowed?	How to open
First Direct	7% fixed for one year	£300	No, min £25/month	No, can't close early without penalty either	Online/ app

WillPS

bmcdonagh said:

I’ve just opened a First Direct bank account (mainly for the switch bonus) and decided to look at opening the linked savings account which offers a huge 7% interest.

I just wanted to make clear that you cannot make partial withdrawals on this account. It also looks as though the 7% lasts for 12 months only, and you then need to find a new home for your savings (at least, that’s how I read it).

Whilst this is still a great offer for someone saving for a long term goal, I think it’s worth mentioning and perhaps the main article in the website could mention the inability to make partial withdrawals as that may influence some people’s decision? 

Personally, I have minor savings that I keep as a sort or ‘house fund’ for maintenance that pops up during the year so I would expect to dip into it a few times a year. This savings account wouldn’t work for me. Just thought it worth mentioning.

Consider Barclays for their Rainy Day Saver, straight forward 5% up to £5k, no min or max pay ins, easy access.

Need to pay in £800/month and have 2 DDs (to cover off the £5 Blue Rewards fee with a £5 reward payment) which is a couple of mins of admin per month.

[Deleted User]

Thanks for the information.
I'm trying to open a First Direct account as a way to get to the 7% which will suits my needs.
I have a really stupid question, so sorry in advance.
During the application via the app, it wants a photo from passport or driving licence. Do they want the photo only from the passport or the passport page with the photo. Similarly, do they want the photo from the driving licence or the whole front of the driving licence.

piker57

The whole page/whole licence.  They need the confirmation of identity which the documents provide. Just clipping the photograph would be of no use to them

piker57

I do hope Starwood that you're also going to ensure you enjoy the £175 incentive for switching a current account from a non-HSBC bank. Starling; Metro & Monzo are all really easy to set up to create a 'donor' account

[Deleted User]

The £175 is definitely an incentive. Thank you 

[Deleted User]

I've opened the First Direct account, but the information I initially read regarding how to switch said that I would be given an option to switch when the account was opened. I can get into the account but nothing regarding the £175 or switching has be received.

piker57

The details are shown by clicking the link below.

Once you’ve got your donor account set up & have the debit card number, log into your First Direct Account online & start a chat. They’ll then arrange the switch the donor account to your newly opened First Direct account.

If I remember correctly they send an activation code in the post to get you going with online/App based banking, so if I’m correct you’ll need to wait for that to arrive.

https://www.firstdirect.com/banking/switching-bank-accounts/#fd_content

[Deleted User]

All done.
Opened 1st Account, set up Regular Saver and switch process.
A bit of a palaver having to use mobile, but eventually done.
Switch was completed on Monday 13th Feb, and "Joining Incentive" of £175 was paid on 13th Feb.
Great service
Thanks for your help