First Direct cuts 1st Account minimum monthly deposit

Savings and ISAs

Updated on 14 March 2013 | 4 Comments

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

Santander 123 Current Account

N/A

£500 (£1,000 to receive interest)

£2 a month

Up to 3% cashback available on household bills

Nationwide BS FlexDirect

 

N/A

N/A

N/A

Interest rate of 5% on balances up to £2,500 (when you pay in £1,000 a month)

First Direct 1st Account

£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

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