First Direct Regular Saver - save £300 @ month for 12 months and earn £97 interest
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First Direct Regular Saver - save £300 @ month for 12 months and earn £97 interest

45
Found 25th JanEdited by:"scottishpunter"
Regular savings account for existing customers, headline of 5% a bit misleading due to payment structure. After 12 months of saving maximum £300 a month, £97 of interest added to your account to give you a total of £3,697.

Similar deals at Nationwide, HSBC, M&S but only £250 a month max.
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'Headline of 5% a bit misleading due to payment structure'.

Not misleading in anyway - just misunderstood by people who think they can earn interest on money not present in the account.
45 Comments
You get around £97 interest
'Headline of 5% a bit misleading due to payment structure'.

Not misleading in anyway - just misunderstood by people who think they can earn interest on money not present in the account.
I think it works out closer to £99 interest. Not that's it's a big difference. If the interest is worked out daily and paid after 12 months I take that to be £99.21. It's still a great rate and both my wife and I have got one of these running. Total £3699.21.

Unless I've got it wrong
darrenmurthick5 m ago

You get around £97 interest


You're probably right. I just used the first online calculator I came across. £97 does ring a bell from when I initially worked it out.
There isn't really anything misleading about the 'headline rate' of 5%.

The £500 you pay in the first month, you get interest of 5% for all 12 months on it.
The £500 you pay in the last month, you get interest of 5% for one month on it.

They're not going to pay you interest on money they don't have - in the meantime, you can keep any money you have in another account that pays interest.
better than premium bonds?
Interest quoted incorrectly, also why keep posting this over and over again? Posted every month for the last couple of months.

hotukdeals.com/dea…com
grinnaslee6 m ago

better than premium bonds?


For me, no.

You're guaranteed to get around £100 in interest after 12 months with FD's reg saver.

With a premium bond, the chance of you getting £100 is significatnly smaller.
karlie8814 m ago

'Headline of 5% a bit misleading due to payment structure'.Not misleading …'Headline of 5% a bit misleading due to payment structure'.Not misleading in anyway - just misunderstood by people who think they can earn interest on money not present in the account.


It is misleading that’s why they do it!
Original Poster
darrenmurthick19 m ago

You get around £97 interest


Updated, I completed one few months back and got £117 but maybe rate was higher!
hmm that link doesnt bring up this account - mostly current account txfr offers

In any case although the 5% figure is correct, most people putting money into an account at x% would expect to get that for a year. For a lot of the £300's added it will be for just months before you get dumped into another account. The amount you actually end up with is a lot less than people might think at first seeing 5% for 12 lots of £300
Original Poster
MARFW9 m ago

Interest quoted incorrectly, also why keep posting this over and over …Interest quoted incorrectly, also why keep posting this over and over again? Posted every month for the last couple of months.https://www.hotukdeals.com/deals/firstdirect.com


Sorry only seems to have been posted once in recent times on your list as part of the switch deal?
scottishpunter2 m ago

Sorry only seems to have been posted once in recent times on your list as …Sorry only seems to have been posted once in recent times on your list as part of the switch deal?


Yes, it was posted as part of the switch deal because you have to have an account with them to be eligible for the saver. Posted on:

31st Dec
11th Nov
4th Oct
More misreading than misleading. Used this twice with HSBC when it was 6%. It was very useful for me for saving up for a car over the 2 years. If you have money sitting in your ISA you may aswell take advantage of this. Just transfer out the 300 from ISA each month.
How is this a deal?
Wow £97! Good thing you’d have 12 months to think about all the amazingthings you could spend it on.
Taking 300 pm out of an isa into this is not a good plan. Once out it cant be put back in and the last few 300's will earn next to no interest before being landed in some other account - 5% claimed or whatever.
Been doing this for past 10 years. The misses has just joined first direct as well and as soon as we have all the details she will open one
You need a standard account with first direct to open one of these accounts? Also after one year does the 5% start again?
Manny508 h, 11 m ago

You need a standard account with first direct to open one of these …You need a standard account with first direct to open one of these accounts? Also after one year does the 5% start again?


Each year you take out a new one when the last one pay out as such
We’ve just completed ours for the year. Once we had finished they transferred the money to an account where we had a £100 overdraft so the £95 we had back they used to pay that off.

They then withdrew the overdraft on that account lol
jwsg11 h, 34 m ago

Taking 300 pm out of an isa into this is not a good plan. Once out it …Taking 300 pm out of an isa into this is not a good plan. Once out it cant be put back in and the last few 300's will earn next to no interest before being landed in some other account - 5% claimed or whatever.


You will earn a lot less in your ISA considering the majority are below 1% apr. Each to their own though, I prefer to maximise my free money.
I started this last march at 5% too... But could of sworn it said £117 or £118 interest
jwsg11 h, 54 m ago

Taking 300 pm out of an isa into this is not a good plan. Once out it …Taking 300 pm out of an isa into this is not a good plan. Once out it cant be put back in and the last few 300's will earn next to no interest before being landed in some other account - 5% claimed or whatever.


Depends on the ISA rate. Given most earn <1.2% and you can add £20k p/a to an ISA it's not as daft as you may think. Keeping money in other savings accounts then dripping it into high rate regular savers is a perfectly sensible way to do things so long as you can easily add the funds back into it and haven't filled the ISA.
I've checked the gross interest I received in the last few years when the rate has been 5% - all within 20p either side of £117. I suspect the £97 is an estimate of net interest, but of course that won't be relevant to most basic rate taxpayers these days due to the personal savings allowance.
Fake news - ignore
Edited by: "premierfella" 26th Jan
Scorpion4 m ago

Depends on the ISA rate. Given most earn <1.2% and you can add £20k p/a to …Depends on the ISA rate. Given most earn <1.2% and you can add £20k p/a to an ISA it's not as daft as you may think. Keeping money in other savings accounts then dripping it into high rate regular savers is a perfectly sensible way to do things so long as you can easily add the funds back into it and haven't filled the ISA.


Also the whole ISA allowance thing was based on tax free interest. Now that savings are tax free upto a certain amount, maximising your ISA allowance is irrelevant to a lot of savers as they don't earn enough in interest to ever be taxed.
Indeed Franken.
Great saving account & First Directs service is great too.
Personally I have switched to Nutmeg risk 8 and have received 10% return last year. I have decided to continue with the more risky savings option
Original Poster
Manny5011 h, 36 m ago

You need a standard account with first direct to open one of these …You need a standard account with first direct to open one of these accounts? Also after one year does the 5% start again?


Yes you need an account. After year 1 that account is closed and transferred to a standard saver, but you can open a new one and start again, even using the now saved £3,600 to be drawn down £300 a month.
The current account has a cost of £10 per month after the first 6 months
Original Poster
gt4game3 m ago

The current account has a cost of £10 per month after the first 6 months



There is no cost for the first six months. After that you can avoid paying the £10 monthly account fee by: paying at least £1,000 into the account every month. or maintaining an average monthly balance of £1,000.
premierfella39 m ago

I've checked the gross interest I received in the last few years when the …I've checked the gross interest I received in the last few years when the rate has been 5% - all within 20p either side of £117. I suspect the £97 is an estimate of net interest, but of course that won't be relevant to most basic rate taxpayers these days due to the personal savings allowance.


When you received £117 in interest, the rate was 6%. The rate has since decreased to 5% - this happened just over a year ago. Anyone who had opened a regular saver before this decrease would have still got 6%.
gt4game8 m ago

The current account has a cost of £10 per month after the first 6 months


The easiest way to bypass this charge is by opening one of their savings accounts (excluding the regular saver), put £1 in it and job done.
Original Poster
karlie8826th Jan

The easiest way to bypass this charge is by opening one of their savings …The easiest way to bypass this charge is by opening one of their savings accounts (excluding the regular saver), put £1 in it and job done.


Do you know if that works for any of the others, Nationwide, HSBC, M&S?
scottishpunter26 m ago

There is no cost for the first six months. After that you can avoid paying …There is no cost for the first six months. After that you can avoid paying the £10 monthly account fee by: paying at least £1,000 into the account every month. or maintaining an average monthly balance of £1,000.


Or by having another qualifying product with them - savings account, mortgage etc.
karlie8822 m ago

The easiest way to bypass this charge is by opening one of their savings …The easiest way to bypass this charge is by opening one of their savings accounts (excluding the regular saver), put £1 in it and job done.


Ah thanks a lot mate
This works out as just under 3% over the whole year. The best instant access savers is 1.3% so much better than that, but it depends how much you've got to save. If you've got the top easy access and do the £300 every month into this account, you're maximizing your earnings. Savings are poor these days but every little helps if you've got the money to save.
You get £97 interest on £300 per month. I had one mature a couple of weeks ago.
I do this every year. Last one matured a few weeks back. Thanks for the reminder!
karlie884 h, 3 m ago

When you received £117 in interest, the rate was 6%. The rate has since …When you received £117 in interest, the rate was 6%. The rate has since decreased to 5% - this happened just over a year ago. Anyone who had opened a regular saver before this decrease would have still got 6%.



Good spot - sorry! I saw the interest received dropped about three years ago on my spreadsheet and assumed it was the fall to 5% - they must have had a higher interest rate in the past before the 6%.
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