FirstDirect eSaver - get the full 5%!

Dagobert

FirstDirect's eSaver is designed to fool people with a high interest rate figure while in reality it can easily drop well below its competitors' rates.

Make one withdrawal and your annual interest rate effectively drops from 5% to 4.58%, make another one* and your interest rate plummets to 4.16%. But utilize the eSaver as an all-or-nothing 30-day notice savings account and you'll get one of the best interest rates currently available.

If you are looking for a high interest instant access savings account, Market Harborough BS is clearly the better deal: clean player - no strings attached.

But if you're a little paranoid and have more capital than the FSA protects (>£35,000), FirstDirect's eSaver could be used as a high interest overflow account in which to stash away excess money which you don't require instant access to:

You won't loose any interest through withdrawal if whip out the whole amount on the 1st of the month when you find a better deal or need the money. The only small loss might occur if the 1st falls on a or close to a weekend so that the transfer will take 2 days longer, which would equate to a loss of 0.3%.


*in a different month

macgyver

Dagobert wrote:

FirstDirect's eSaver is designed to fool people with a high interest rate figure while in reality it can easily drop well below its competitors' rates.


You won't loose any interest through withdrawal if whip out the whole amount on the 1st of the month when you find a better deal or need the money. The only small loss might occur if the 1st falls on a or close to a weekend so that the transfer will take 2 days longer, which would equate to a loss of 0.3%.


*in a different month

But remember that you cannot trasfer more than £10,000 in one day.

webwiz

Mac why do you think you can only transfer £10000 a day? Here are the terms from the site:

e-Savings Account Terms & Conditions
1. e-Savings Account
The following Terms, together with the Principal Terms and Conditions (where applicable), are the contract between you and us in connection with your e-Savings Account.

1.1 The e-Savings Account is designed to be serviced online. Balances and statements will only be made available online and we recommend that you print off and keep or electronically save all electronic statements.

All transactions are to be conducted online. If you want to contact us you must do so online, instructions cannot be taken at the telephone for this account.

1.2 You must maintain a minimum balance of £1 or such other minimum amount as we may set from time to time, on your e-Savings Account.

1.3 Customers are limited to one e-Savings Account each and the maximum balance allowable on an account is £500,000. If your balance exceeds £500,000, no interest will be paid on the element over £500,000.

1.4 An e-Savings Account can only be opened in a sole name, jointly held accounts are not permitted.

1.5 We will pay interest at the appropriate e-Savings Account rate on credit balances. If during any calendar month, you do not close your account and you do not make any withdrawals from your account, we will pay interest at the appropriate rate.

The rate of interest currently payable on the e-Savings Account is shown in our current Interest Rates and Charges leaflet which is available on request or visit our website at firstdirect.com (see clause 13 of the Principal Terms and Conditions for interest rate variations).

Calendar months start on the first day of each month.

1.6 If during any calendar month, you close your account or you make any withdrawals from your account, no interest will be payable.

We will calculate interest on a daily basis on cleared end of day balances and we will pay it to your e-Savings Account or nominated first direct account monthly or on closure.

1.7 If there is, at any time, a debit balance on your account, we may charge interest at our unauthorised overdraft interest rate, charge fees and close your account having given you 30 days written notice.

1.8 Your e-savings account will not be a "Combined Account" for the purposes of any offset mortgage that you may have with us.

1.9 We will normally pay interest after deduction of tax at the applicable rate (see clause 6.1 of the Principal Terms and Conditions regarding credit interest).

1.10 If your e-Savings Account is closed, you cannot open another one at any time within three months from the date of closure of your previous e-Savings Account.

macgyver

I have an online saver with HSBC and their T&Cs dont mention it but when I tried transfering money out of my account, I got the message that I am not authorised to withdraw/transfer more than 10,000 in one.
As FD and HSBC are from the same group, I would have thought that FD would also do the same thing.
Its better to ring and ask their customer support.
Thanks

Caped_Avenger

macgyver wrote:

But remember that you cannot trasfer more than £10,000 in one day.

That's wrong mate.

Dagobert

macgyver wrote:

But remember that you cannot trasfer more than £10,000 in one day.

Caped_Avenger wrote:

That's wrong mate.

Sure? Have you tried it?

It doesn't strike me as that unusual. There is a similar limit with the Bank of Scotland Halifax: You can't transfer more then £20K to an external a/c and you can't have more than one bill payment to the same destination on one day.

Caped_Avenger

Dagobert wrote:

Sure? Have you tried it?

I'm sure. I haven't tried it, because i don't have the money to do it!

How do i know? Check my profile (specifically where i live, my occupation), then think about where fd are based.

Dagobert

Caped_Avenger wrote:

How do i know?

I checked with FirstDirect: there is a limit, but none that I'll be hitting:

"There is no limit to the amount that can be transferred, however the maximum limit allowed is £500,000, and one account per customer."

Anon

Is it legal/ethical to withhold interest on the full amount for one month if you make one withdrawal? I could understand it if it was interest on the amount withdrawn, but to penalise you for all the interest for that month seems excessive. Sounds unfair as a term - I was considering this until I noticed that particular rule. Is interest applied at the end of the month or some obscure date?

Anon

mary

I agree with your point of view. However, I think this is the point of checking the Ts & Cs before you sign on the dotted line. Either you are happy with them, or you takes your money elsewhere!!!

innovate

Don't think it's a question of legality or ethics, it's simply a question of Terms and Conditions that define the contract between the bank and account holder. You don't need to sign a contract that you don't like.