First Direct Savings account

ED wrote:

First Direct have yet to notify customers (in my family's experience) that the Savings Account in February drastically dropped its interest rate to the 0.10% gross mentioned by fanlandcheese.

A complaint has been issued from our household about the rate-drop + lack of notification.

ED,

On the FD Savings Account:
I was unhappy for a similar reason. I did get a notice of variation - but this was not received until 17th February and the change took effect on 21st - just four days later. They also had the nerve hide this particular bad news amongst the 'good news' of the rate change to their e Savings to 5.20 AER

On the FD e-Savings Account:
The only way to operate that account is to move everything out on the first of the month into your bank account and then transfer what is not required for immediate use to another account for the rest of the month. The only trouble there is what account compares to this 5.20 rate? I had suggested that a husband and wife could have separate FD bank and e Savings accounts [only one e Savings is allowed 'per customer'] and to transfer - possibly via the bank accounts any surplus from one e Savings account to the other - always on the first of the month or not at all that month. D'you think this is possible?

grumbler - more to grin about that grumble, as you were smart enough to thoroughly study T+C prior to deciding whether to open an account!

Milarky - the shockwaves enlarge, knowing your experience re notification of First Direct's drop in Savings Account interest rate!

Re e-Savings account of First Direct, I see the rate is only 5.08% gross (advertised as 5.20% AER). This compares poorly with 5.35% gross offered by Alliance + Leicester.

MSE posters report, in another thread, contrary to A+L's terms and conditions, it rarely takes 24 hours for £'s to move internally from A+L's Online Saver to their current accounts. So I for one am tempted to try A+L rather than First Direct or any other basic online account for day-to-day funds.

Big Brownie points from our family for Leeds Building Society (as Leeds & Holbeck BS are soon to be known). Last summer they offered 5.30% for their Online Saver account. Sadly it now pays only 5% for newcomers, but the Society was at the forefront for several months. By the way, folks, existing members of Leeds BS can earn 6% in a savings account for up to £5,000. (Quick! I believe the account will close to new applicants at the end of March.)

First Direct are making a mistake creating complicated, suffocating, disincentives to withdrawal from their frankly misleading accounts. Anyone here know whether some big cheese took over the helm of First Direct around the time of these terrible changes? I sincerely hope First Direct get back to fair banking. They could learn much from Alliance + Leicester. A good interest rate for in-credit current account banking is incentive enough, even without the added bonus of a 'joining' gift of £25.