First Direct: Are they really that good? and query

fox2319

Am currently looking into switching from Alliance & Leicester as they've turned our local branch into little more than a front for their call centre. Only thing stopping me so far is I can't decide whether to go for these guys for the £100 or smile for the ethical policy.

I've looked into the first direct policy and it seems to be pretty woolly, Anyone know any different?

Ta

george_jetson

bristol_pilot wrote: »

So they should be for £120 a year.

Pay in £1,500 a month, get yourself a (free) fd visa card or open a savings account and stick £1 in it. There are plenty of ways of avoiding the monthly charge on the current account

gt94sss2

fox2319 wrote: »

I've looked into the first direct policy and it seems to be pretty woolly, Anyone know any different?

I suspect First Direct subscribe to HSBC's corporate responsibility policy

Regards
Sunil

Ember999

We have been with First Direct as our primary bank account (we have others) for 15 years. I have not one word of complaint against them, they are fabulous. 12/10 as far as banks go, they are the best you can get!

Ember999

fox2319 wrote: »

Am currently looking into switching from Alliance & Leicester as they've turned our local branch into little more than a front for their call centre. Only thing stopping me so far is I can't decide whether to go for these guys for the £100 or smile for the ethical policy.

I've looked into the first direct policy and it seems to be pretty woolly, Anyone know any different?

Ta

In what way 'woolly' can you be more specific?

fox2319

Ember999 wrote: »

In what way 'woolly' can you be more specific?

I guess that was a little woolly. I've read what they've got to say and there's lots of good buzz-words about corporate responsibility (or 'CR' as they insist on calling it), community and environment. Nothing about specific targets that they need to meet or about any sort of ethical policy. Is it just money that determines their investments or do they consider other aspects too? As an example, would they invest in an industry with a really bad carbon footprint but claim that they are offseting carbon elsewhere (which they appear to be doing, and probably would do regardless of the investment - more PR than CR)

Cheers

gt94sss2

fox2319 wrote: »

Nothing about specific targets that they need to meet or about any sort of ethical policy. Is it just money that determines their investments or do they consider other aspects too? As an example, would they invest in an industry with a really bad carbon footprint but claim that they are offseting carbon elsewhere

Its a bank - like any other their main aim will be to make money..

However, looking at their website.. it doesn't seem that 'woolly':

- they claim to be the worlds first carbon neutral bank and the first company in the FTSE 100 to be so
- have sector guidelines which state how they will deal with investments.lending to the mining, energy, chemicals firms etc.
- adopted the Equator Principles in 2003 which look at social/environmental issues in project financing
- they are spending $90million on a Global Environmental Efficiency Programme (which I suspect also makes business sense for them)
- have donated $100million to research/combat climate change (the largest single donation by any private company I think)

I suspect the carbon offsetting is one way they become carbon neutral, though I know they are also experimenting with 'green branches'

You would have to read the full HSBC CR report for more I haven't.

I suspect the Smile/the Co-op just make a bigger deal of their policy.. and its probably 'stricter'/clearer in places but I suspect that HSBCs contribution is bigger globally and their business is that much more complex.

(Re: the Equator Principles.. that website is interesting.. it shows LloydsTSB adopted them a couple of weeks ago though I can't see a mention of the Co-op)

EDIT: Actually, reading the HSBC website - they do also list Environmental Targets and Environmental Performance data

Regards
Sunil