FirstDirect Regular Saver account - earn 6.00% AER gross on up to £3600 PA
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FirstDirect Regular Saver account - earn 6.00% AER gross on up to £3600 PA

90
Found 30th Apr 2013
ISA's are offering really low interest rates at the mo so thought I'd look into some regular savers. This one looks good and you can save anything from £25-£300 per month and a maximum of £3600 in a year.

Works out at £93 net interest if you save the full £300 per month from month 1.

Bear in mind you'll need a first direct current account.

EDIT**

It seems some people really struggle with basic maths and logic. So to briefly explain:

You will not receive 6% gross on £3600 for a whole year because the maximum you can save is £300 per month. I thought this was pretty obvious. Therefore, assuming you pay the maximum £300 in per month, you earn 0.005% on £300 for month 1, 0.01% on £600 for month 2, 0.015% on £900 for month 3, 0.02% on £1200 for month 4 and so on (see post 22 for a better breakdown, thanks Smithers37). It equates to £93 net interest per year, its good. If you see a better current deal, post it!

What I will be doing is moving my current ISA to the best ISA I can find, and all my new savings that I make in the next year, will go into this regular savings account - because the interest rate is far better than any ISA I've seen.

People go on about paying off mortgage etc but I have a wedding to pay for!

Hope the deal (and explanation) is useful to some of you.

90 Comments

COLD

did this is last year....its pants

94 quid...

Original Poster

bagga212

COLDdid this is last year....its pants94 quid...



Can you earn more in interest with a bank? If so please let me know!

Best out there I start a new one every year pays more than every where else

BB1988

Can you earn more in interest with a bank? If so please let me know!



i use the nationwide 5% invested 2.5k

have a standing order in and out monthly every 10th day of the month.

see what happens in 11months time!!!

Don't you have to be a First Direct current account holder to get this?

6.00% looks good at first glance, but the fact that you can only add £300 per month means the effective interest rate on the full £3,600 is only 2.96% - and that's gross (i.e. taxable).

This is pretty good but shame its not an Isa. Take no notice of the millionaires as they don't understand the interest rates now days. Hot and thanks for posting as i shall be taking one out.

Where can you get 2.96%.

good for me! already with them

COLD! Was 8% last year.

Original Poster

daveyk1975

COLD! Was 8% last year.



Do you have a time machine?

HOT..

Easy 6% if you have some surpass cash around.

Banned

Claybuster

Don't you have to be a First Direct current account holder to get this?


To apply for a Regular Saver Account you must already hold a first direct current account - our 1st Account.

Original Poster

csiman

To apply for a Regular Saver Account you must already hold a first direct … To apply for a Regular Saver Account you must already hold a first direct current account - our 1st Account.



Thanks, have added to OP

You use other interest bearing accounts to drip feed into FD Current account and then into Regular Saver

These could be BoS and LLoyds Classic Vantage as well as Santander 123

monitor1

Where can you get 2.96%.

I get 3% with santander. 123 current account
If you can afford £300 savings a month the £3k to earn 3% should be no problem

WillieGophar

6.00% looks good at first glance, but the fact that you can only add £300 … 6.00% looks good at first glance, but the fact that you can only add £300 per month means the effective interest rate on the full £3,600 is only 2.96% - and that's gross (i.e. taxable).



Only if you don't understand how interest works. Its a regular saver, obviously if you just have £3600 sticking around earning no interest this isn't the account for you. For folks like me with a job and save some each month, its a great idea.

Best interest rate around, hot:{

mocmocamoc

Only if you don't understand how interest works. Its a regular saver, … Only if you don't understand how interest works. Its a regular saver, obviously if you just have £3600 sticking around earning no interest this isn't the account for you. For folks like me with a job and save some each month, its a great idea.


So could you enlighten me and perhaps others on where I've gone wrong? I'm pretty sure after reading the First Direct blurb that you would not get a total of £216 (£3,600 x 0.06) gross interest after a year of investing £300 per month.

WillieGophar

6.00% looks good at first glance, but the fact that you can only add £300 … 6.00% looks good at first glance, but the fact that you can only add £300 per month means the effective interest rate on the full £3,600 is only 2.96% - and that's gross (i.e. taxable).

This assumes you have £3600 at the start of a year in an account that doesn't pay interest - something which would be quite silly to do.

£3600 saved over a period of 12 months, placing £300 a month at 6% interest would come to £117 by my calculation, if it works out the way I think it does.

Anyone get anything different?

The interest on each individual month of savings would be:

0.06
0.055
0.05
0.045
0.04
0.035
0.03
0.025
0.02
0.015
0.01
0.005

Used to be 8%. So not so good now but still better than elsewhere.

Smithers37

£3600 saved over a period of 12 months, placing £300 a month at 6% i … £3600 saved over a period of 12 months, placing £300 a month at 6% interest would come to £117 by my calculation, if it works out the way I think it does.Anyone get anything different?The interest on each individual month of savings would be:0.060.0550.050.0450.040.0350.030.0250.020.0150.010.005


I don't think it works like that either. The OP has already said it would yield £94 net interest (on £300 pm / £3,600 total) after a year. That is, as you say, £117 gross which equates to a 'simple flat rate' of 3.26%. I think that the 'true compund rate' for equal monthly instalments is ([square root of 1.06] - 1) x 100, which is (1.0296 - 1) x 100 = 2.96%.
I wasn't dissing the deal, merely pointing out that the stated interest rate is, just like all other sales blurbs, slightly misleading.

My wife and I each opened one of these last week. It's a good deal.

Prefer to use the Nationwide FlexAccount which pays 5% on balances up to £2500, then the Santander 123 Account which pays 3% on balances up to £20,000.

Don't let the headline 6% catch you out, it's not that great. Not voted as it isn't that bad either.

Regular Saver deals ALWAYS get comments from the mathematically challenged to say that the rate is closer to half of the headline rate... so much so that I couldn't be bothered explaining it to them anymore - good to see the explanation is already given here....

REALLY REALLY COLD Spend your money!

I believe Nationwide is better if you get the 5% interest on the whole amount since day 1

Voted cold for reasons stated above, but a good account if you're loaded and already maxed out the interest limits on Nationwide & Santander accounts.

in all honesty guys most of us will have mortgages, with interest rates so low you are far better off doing a offset mortgage, and use your savings there

It's terrible. I work in a bank and they stopped doing these types of savings as there very misleading to the customer. Even if it was 10% it would be rubbish

Shame you have to have a current account!

konkywonky

Prefer to use the Nationwide FlexAccount which pays 5% on balances up to … Prefer to use the Nationwide FlexAccount which pays 5% on balances up to £2500, then the Santander 123 Account which pays 3% on balances up to £20,000.Don't let the headline 6% catch you out, it's not that great. Not voted as it isn't that bad either.


Both accounts require you to pay in £500-1000 per month to keep the benefits active.
How do you do that? Can you pay in £1000 then transfer it away immediately again? Does that count?

I have a First Direct account but I agree with most comments stating its pants.

94 quid after a year isn't much is it ? You'd be better off spending wisely saving a quid or two a week by not buying this or that and you'll still get 50-100 quid!

Or selling some games/DVDs around the house

Savings rates really are not worth the bother at the moment!

LegendThompson

It's terrible. I work in a bank and they stopped doing these types of … It's terrible. I work in a bank and they stopped doing these types of savings as there very misleading to the customer. Even if it was 10% it would be rubbish



Which bank do you work at?

HSBC have a similar account:

http://www.hsbc.co.uk/1/2/savings-accounts/regular-savings-accounts

As long as you're a particular type of customer, example - Premier customer, or a student

(used to be 8% too)

This site should save you money but we all buy stuff on here we don't need!

Hold off the impulse purchases! Not all just one or two :-)

LegendThompson

It's terrible. I work in a bank and they stopped doing these types of … It's terrible. I work in a bank and they stopped doing these types of savings as there very misleading to the customer. Even if it was 10% it would be rubbish



Of course it would.

bridge_street

Both accounts require you to pay in £500-1000 per month to keep the … Both accounts require you to pay in £500-1000 per month to keep the benefits active. How do you do that? Can you pay in £1000 then transfer it away immediately again? Does that count?



I use the Santander 123 account as my current account, my salary gets paid there and I transfer £1000 out that day to Nationwide via standing order and then back to Santander the following day.
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