Get even more cash for switching to the First Direct 1st Account
The popular bank has boosted the switching bonus on its 1st Account.
First Direct has increased the switching incentive on its 1st Account to £125, up from £100.
With this move, the bank hopes to entice people who are dissatisfied with their current provider.
However, be aware that you have to pay in at least £1,000 a month for the first three months in order to get the bonus. You'll also need to either pay in £1,000 a month, or keep an average balance above £1,000 in the account, or take out another First Direct product such as a savings account, credit card, loan or mortgage, otherwise you'll have to pay a £10 monthly fee. This fee is automatically waived for the first six months you have the account.
Compare current accounts with lovemoney.com
How it compares to other current accounts
Though that £125 incentive seems rather appealing, how does the 1st Account compare to the other current accounts out there? We’ve rounded up some of the most competitive deals on the market to help you make up your mind.
|
Product and provider |
Interest Rate (AER) |
Authorised overdraft |
Annual fee |
Switching incentive |
Minimum monthly deposit |
Perks |
|
5% interest rate for first year on balances up to £2,500, 1% thereafter |
Free for 12 months, 50p a day thereafter |
None |
None |
£1,000 |
Access to exclusive products
You’ll get a refund for the first accidental overdraft fees you incur |
|
|
5% on balances up to £2,000 |
19.94% and £6 per month |
None |
None |
£500 |
Commission-free foreign currency and non-sterling travellers cheques Access to exclusive products |
|
|
Lloyds Bank Club Lloyds Current Account |
4% on balances between £4,000 and £5,000; 2% on balances between £2,000 and £3,999.99; 1% on balances between £1 and £1,999.99 |
Free for 3 months, 50p a day thereafter |
None |
None |
£1,000 (A £5 monthly fee will be charged if you don’t have this amount in your account) |
Choose an annual lifestyle benefit from: Six Vue cinema tickets An annual magazine subscription Annual Gourmet Society membership |
|
3% on balances between £3,000-£20,000; 2% on balances between £2,000 and £2,999.99; 1% on balances between £1,000 and £1,999.99 |
£1 a day |
£24 (£2 per month) |
None |
£500 |
1% cashback on water and council tax bills, 2% cashback on gas and electricity bills and 3% cashback on mobile and home phone bills, broadband and TV packages Access to exclusive products |
|
| Tesco Bank Current Account | 3% on balances up to £3,000 | 18.9% | £5 per month if £750 minimum deposit not met | None | £750 | Collect extra Clubcard points in and out of Tesco with your debit card. One point for every £4 spent in Tesco and one point for every £8 spent out of Tesco in each card purchase transaction. |
|
Bank of Scotland Classic Account with Vantage |
3% on balances of £3,000-£5,000; 2% on balances of £1,000-£2,999.99; 1.5% on balances of £1-£999.99 |
19.94% |
None |
None |
£1,000 |
Earn up to 15% cashback with Everyday Offers and the chance to win one of your purchases back up to the value of £500 on a monthly basis with ‘It’s on Us’ |
|
2% |
9.9% and £6 per month |
None |
£150 |
£1,000 |
£150 switching bonus when you use the Current Account Switch Service and credit the account with £1,000 within 31 calendar days following your switch completion |
|
|
2% |
9.90% EAR |
None |
£150 |
£1,000 |
£150 switching bonus when you use the Current Account Switch Service and credit the account with £1,000 within 31 calendar days following your switch completion |
|
|
0% |
15.9% |
£120 (£10 per month) if £1,000 monthly deposit is not made or you don't keep £1,000 in the account or you don't hold another First Direct product |
£125 |
None (£1,000 if you want to avoid £10 fee and don't meet other criteria) |
£125 switching bonus, providing you pay in £1,000 a month for first three months If you’re not happy banking with First Direct after six and within 12 months, First Direct will help you move banks and pay you £100 for your trouble Access to exclusive products |
|
|
0% |
18.9% |
None |
£100 |
£800 |
£100 switching incentive plus £25 charitable donation when you use the Current Account Switching Service, pay in at least £800 into the account within 31 days and set up two active direct debits Access to exclusive products |
|
|
0% |
18.9% |
None |
£100 |
None |
£100 switching incentive plus £25 charitable donation when you use the Current Account Switching Service, pay in at least £800 into the account within 31 days and set up two active direct debits Access to exclusive products |
|
|
0% |
19.89% and £6 per month |
None |
None |
None |
Earn a minimum of 1% cashback at selected retailers and an additional 1% on contactless purchases Access £300 emergency cash from NatWest/RBS ATMs if your debit card is lost or stolen. |
|
|
0% |
19.89% and £6 per month |
None |
None |
None |
Earn a minimum of 1% cashback at selected retailers and an additional 1% on contactless purchases Access £300 emergency cash from NatWest/RBS ATMs if your debit card is lost or stolen. |
Even though the switching incentive seems pretty appealing, it's worth noting that both Yorkshire Bank and Clydesdale Bank are both offering a higher switching bonus of £150 and both pay credit interest of 2% on balances up to £2,000.
Top-notch customer service
Though the 1st Account doesn’t beat its competitors in terms of interest rates, First Direct is always top dog when it comes to customer service. You can see this from the generous £100 offer it makes if you decide to switch away from it to another bank in the second six months you have your account.
First Direct is continually winning awards for its high standard of customer service. The bank beat market favourite Lush in September 2014’s Which? customer service survey with an impressive 87%. Scores were based on customers feeling valued, knowledge of products and services, helpfulness of staff, resolving problems or complaints and access the customer support.
It also topped last year’s Nunwood Customer Experience Survey of 250 top UK brands, knocking John Lewis off the number one spot.
Does the enhanced bonus make you want to bank with First Direct? Let us know in the comments below.
Compare current accounts with lovemoney.com
More on banking:
Take advantage of the 0% credit card price war
Comments
Be the first to comment
Do you want to comment on this article? You need to be signed in for this feature