First Direct cuts 1st Account minimum monthly deposit
The First Direct current account is now more accessible, as a result of the minimum monthly deposit being slashed. And that's fantastic news for us all!
It’s now a lot easier to apply for a current account with First Direct as it’s lowering the monthly deposit needed in the account to £1,000, from £1,500.
New customers can benefit from the lowered rate from 1st April, while existing customers will have to wait a month longer for the changes to come into effect on 1st May.
The 1st Account
First Direct is a firm favourite with lovemoney readers and is regularly voted as one of the best providers, especially when it comes to current accounts.
Lowering the amount customers need to deposit will open the 1st Account to a lot more people as to get one you’ll now only need to put in £1,000 a month.
Customers also get £100 when they switch to First Direct, and another £100 if they then leave because they’re not happy with the service.
How does it compare?
The news from First Direct will be a huge boost to people who aren’t able to put away £1,500 a month and is likely to lead to a lot more interest for the bank, which is owned by HSBC.
However, there is no guarantee you’ll be accepted for the account and it might not be the most suitable for you.
If your main priority is a high interest rate, for example, the Nationwide FlexAccouont will be more suitable. This pays a market-leading 5% interest, which means it beats the best savings accounts!
The Santander 123 account is also competitive and pays cashback on your household spending as well as 3% interest when your balance is between £3,000 and £20,000 – again beating all current instant-access savings accounts.
Here I’ve listed the best accounts around.
The top current accounts
|
Account |
Joining incentive |
Minimum monthly deposit |
Fee |
Other features |
|
N/A |
£500 (£1,000 to receive interest) |
£2 a month |
Up to 3% cashback available on household bills |
|
|
|
N/A |
N/A |
N/A |
Interest rate of 5% on balances up to £2,500 (when you pay in £1,000 a month) |
|
£100 |
£1,000 (from 1st April for new customers) |
N/A |
Regular saver account paying 6%
|
|
|
Halifax Reward Current Account |
£50 |
£1,000 |
N/A |
£5 monthly reward |
More on current accounts:
Get cashback with your current account
Alternatives to current accounts with the big banks
Zopa, Funding Circle, RateSetter: why peer-to-peer lending is a better way to fund your retirement
Nationwide launches new FlexPlus packaged current account
The best instant access savings accounts
The best regular savings accounts
Most Recent
Comments
-
Another good thing with the 1st Account, is that with the ISA season upon us, First Direct currently have the best instant access ISA for THEIR customers, at 3.00% gross. Check that out!! I know, it's a way of drumming up new business, but given their top customer service, surely this is a no-brainer??
REPORT This comment has been reported. -
The problem with these wonderful offers is that you end up with loads of bank accounts and have to shift money into them each month and out again.I have a Santander 123 so sfift £500 a month in the pay the DDs I have set up. I also have a Nationwide Flex so now have to shift £1000 in to meet their ruels. I have had a Coop account for 38 years and I am not leaving them as they are consistently very good to deal with , but give no interest. I am retired so have time to mess about in this way but if you are busy it must be a pain to have to do this. So far santander seems OK, but I have a branch in teh village and the chap there would sort issues out quickly as he gets through to people that really do know what they are doing. I am Treasurer of a couple of societies too and we bank with HSBC Buisness banking which is very good and the other society with the Sanatander which took over Alliance and Leicester commercial bank which took over Giro bank. This bank is still in the steam age basically and we still use Post Offices to pay cheques in. I cannot be bothered with the hassle of changing banks as we have four signatories and the task of getting them all recognised by the new bank as human beings is beyond my life span.
REPORT This comment has been reported. -
I find it very trying and somewhat unfair to brand a bank because of a single person's bad experience. I had a savings account that was subject to a 12 month interest bonus, and this expired last November without me noticing. My fault. However I contacted Santander and 'complained' that they had not warned me that the interest rate would fall from 3.17% to 0.5%, as some other banks will do, e.g. HBOS. I thought no more about it until I received a letter in February informing me that as a show of goodwill Santander would pay the interest for the period from November to the date the 'complaint' was processed. I received just over £400.
REPORT This comment has been reported.
Do you want to comment on this article? You need to be signed in for this feature
24 March 2013