First Direct 7%

[puffster]

First Direct have increased the rate on their Regular Saver Account to 7% from 1st December. This applies to new and existing accounts. OK it's one of those annoying maximum £250/month ones (arriving at £3000 after 12 monthds when it matures) and you need a FD bank account as well but of use to someone out there...

Regards, Puffster

[kempiejon]

Thank you, prompted me to have a look I'm a FD customer already have a reg saver, which was 3.5% fixed for 12 months max £300 and 6 months or so to run.
I see from FD website that

Planned changes on the 1st December
Existing Regular Saver Account holders

We're very pleased to let you know we’re increasing the interest rate on your Regular Saver Account to 7% AER/Gross from 1st December 2022. You don't need to do anything, we'll automatically increase the rate on the 1st!

[puffster]

Ah yes, actually £300/month so £3,600 at maturity.

Regards, Puffster

[Padders72]

Not quite as wonderful if it sounds, money already paid in will continue to accrue at 3.5%, it is only new funds that will get the 7%.

[pje16]

Not quite as wonderful if it sounds, money already paid in will continue to accrue at 3.5%, it is only new funds that will get the 7%.

Agreed
Even a full year's interest is well under £150

[swill453]

Not quite as wonderful if it sounds, money already paid in will continue to accrue at 3.5%, it is only new funds that will get the 7%.

I can't see that stated on the web site, how do you know that's the case?

Scott.

[pje16]

Not quite as wonderful if it sounds, money already paid in will continue to accrue at 3.5%, it is only new funds that will get the 7%.

I can't see that stated on the web site, how do you know that's the case?

Scott.

"I have a Regular Saver at the moment, will I get the new rate of interest?"

"You don’t need to take any action, the new 7% interest rate will automatically be applied from 1st Dec for the remainder of the 12 month term"

sounds like you get it on the lot

[swill453]

"You don’t need to take any action, the new 7% interest rate will automatically be applied from 1st Dec for the remainder of the 12 month term"

sounds like you get it on the lot

Yeah, it would be unusual, and pretty hard to work out, to have 2 different interest rates applying to the account balance.

Scott.

[Mike4]

I applied for a bank account with First Direct when they very first started up, and the buggers rejected my application and refused to say why!

I've held a mortal grudge against them ever since

[Padders72]

Yes you are right and it would be odd indeed. I misread a clumsily worded para in the mail they sent announcing the change. It does look like its 7% from 1st Dec on the lot.

[didds]

Not quite as wonderful if it sounds, money already paid in will continue to accrue at 3.5%, it is only new funds that will get the 7%.

Agreed
Even a full year's interest is well under £150

so really no better that investing £3600 on a 1 year fix at circa 4.5% already (kent reliance?)

and given tyhat rates may rise again even waiting a month to "see" wont lose much.

the headline rate is great but obviously its on on a moving target that doesnt get very large until several months in etc.

[AWOL]

Not quite as wonderful if it sounds, money already paid in will continue to accrue at 3.5%, it is only new funds that will get the 7%.

Agreed
Even a full year's interest is well under £150

so really no better that investing £3600 on a 1 year fix at circa 4.5% already (kent reliance?)

and given tyhat rates may rise again even waiting a month to "see" wont lose much.

the headline rate is great but obviously its on on a moving target that doesnt get very large until several months in etc.

There is a lot of looking a gift horse in the mouth here. Sure we can all imagine better but this is a very good offer in the current market.

Okay so lump sum investors have an alternative but the point is that for those that need a regular saver, such as those on a salary or funded mainly by annuities/non-drawdown pension income, this is a great deal. So good I think I will suggest that my working wife uses it on our First Direct joint account. It's perfect for holiday saving.

The other thing that is really positive is that First Direct have excellent customer service although their security measures have traditionally been more demanding than other banks. Many other banks seem to have caught up on the security front.

[pje16]

so really no better that investing £3600 on a 1 year fix at circa 4.5% already (kent reliance?)

Woo hoo £162

[pje16]

The other thing that is really positive is that First Direct have excellent customer service although their security measures have traditionally been more demanding than other banks. Many other banks seem to have caught up on the security front.

Yes they do
I have been with them since 1991 and they are the best by far
and their banking app is also one of the best and easiest to use.

[stevensfo]

I applied for a bank account with First Direct when they very first started up, and the buggers rejected my application and refused to say why!

I've held a mortal grudge against them ever since

I get offers to apply for credit cards, but reject them.

I refuse to say why as well.


Steve

[AWOL]

so really no better that investing £3600 on a 1 year fix at circa 4.5% already (kent reliance?)

Woo hoo £162

Except you don't have £3600 tied up for 12 months, on average you have £1800 and get 7% interest on it. I don't see a better deal for regular savings on the market and snapped it up.

[kempiejon]

I see FDs parent HSBC are following along https://www.hsbc.co.uk/savings/products/regular-saver/

We increased the rate of the regular saver from 1% to 5% on the 1st December 2022, this rate applies to both existing and new accounts opened.