First Direct e-savings the best?

mdb99jh

I have £14000 to put in an easy-access account with online access. A month ago, bradford and bingley had theirs at 5.25%, but that has now appeared to drop to 5.10%. So the best I can now find in first direct at 5.20%. Anyone know of a better option? How good is the first direct account?

All advice / comments welcome

Kazza242

First Direct e-savings doesn't pay you any interest for a month on the whole sum in your account should you make a withdrawal. For example, say you deposited your £14K in the account and you wanted to withdraw £10. You would not receive any interest for that month on the whole £14K!

There are other accounts out there that pay a decent rate, but that are really easy access.

As you've already mentioned, there is Bradford & Bingley's eSavings2 which pays 5.10%. It comes with a guarantee to at least match BOE base rate plus 0.25% until June 2006.

Cahoot's savings account pays 5.10%. Interest is paid monthly.

Yorkshire BS' internet saver* pays 5.00%. *This account has replaced the e-saver - which is no longer available to new customers.

Nationwide BS' E-Savings pays 5.00%.

There is also the ICICI account that pays 5.40%, but from what others have said on the thead below; they are very slow with processing applications and have appalling customer service.

cadboll

Hi!

From a previous thread - you've already seen I'm in a similar position! I've been looking round various online savings accounts - I was originally with A&L but they have dropped their rate to 4.50% Gross. Nationwide offer 5.00% Gross. First Direct is the best I've seen yet but am in the same boat as yourself - is it a good deal?

ICICI (Indian bank) offer 5.40% Gross - but I've been checking it out - apparently they don't have a great credit rating which would make me reluctant to use them.

mdb99jh

Yeah I don't fancy ICICI's account. Very good interest, but not worth the risk of my 14K! I guess I'll have to weigh up whether I'll be making any withdrawals in the next year or so. If not, the first-direct might be worthwhile. Having said that, I'm not sure if it is linked to the BOE base rate like the bradford and bingly account, which is the main rival as far as I can see.

Patr100

I'm currently with First Direct Bonus Savings accout which pays extra each month provided I don't make a withdrawal. Current rate is 4.50% AER variable (4.41% gross p.a.) I need to withdraw about twice a year.

E direct obviously pays more but stings more if you withdraw. Not sure if I would be better off - hard to work the difference out easily - will probably stay put.

Jonners_2

Northern Rock are good for the first six months 5.4% i think. I have money with ICICI but can only confirm hopeless ( but very polite) customer relations. Simple transactions are taking 10 days. I will be withdrawing all funds shortly if no improvenment.

jimclark1967

Northern Rock is now down to 5.31% for first 6 months - still pretty good though.

JC

Jonners_2

I'll be checking Northern Rock in view of todays cut-thanks

Wolfhound

I applied online for the First Direct e-savings account 11 days ago, its still not up and running yet. Maybe there has been a rush for it!!

Doppleganger

From Northern Rock T&C's:

† Rates include an introductory bonus. Please note we do not write to you separately, when this bonus expires.

That's kind of them - NOT! Oh, I guess 5.31 gross will do for 6 months

chatcat

To couteract the penalty of 1 months interest I guess if the total balance was withdrawn on the 1st day of the month the penalty would only be that days interest . At 5.2% aer this could be one way to "play the system whilst earning a good rate of interest .

Principality Reg Saver Bond & Derbyshire Reg Saver looked attractive previously also! Have not checked if their rates have dropped .