first direct offers ‘competitive’ interest rate of 7%

first direct is stepping up its savings offers in attempts to draw in more savers. One particularly attractive offer right now is the bank’s Regular Savings Account, which offers a fixed rate of interest.

Those who save via this account could secure an interest rate of seven percent AER/gross – fixed for 12 months.

In addition, savers through this account could also get a £250 interest-free overdraft when switching to first direct.

Interest on the account is calculated daily, and paid at the end of the 12 month period.

For example, if a person saves £300 per month for 12 months, first direct states the interest is £136.50.

Chris Pitt, CEO of first direct, previously said: “Our Regular Saver Account allows customers to add to their savings regularly, while earning a competitive interest rate, market-leading at seven percent.”

The Regular Saver Account is only available at present to first direct current account holders.

There are also other specific eligibility criteria to bear in mind with this account.

Britons must be over 18 and a UK resident, with a phone number and email address.

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In addition, they must not have been declared bankrupt or registered for an Individual Voluntary Agreement in the last six years, or be in the process of doing so.

No joint accounts are permitted, and only one account per person at one time is permitted.

Another incentive is the bank switching offer being put forward by first direct.

The bank states it will provide bank switchers with a free £175 to “say hello”.

To get the cash offer, people will need to open a 1st account and switch their everyday banking to first direct using the official Current Account Switching Service.

They will also need to pay in at least £1,000 within three months of opening the account. 

The switching offer is limited to one payment per customer or joint account, and should be paid out within 28 days of all the criteria being met.

The offer, however, is not available to people who have opened an HSBC current account on or after January 1, 2020. Similarly, the offer is exclusive to new customers, and so those who have previously held a first direct product are excluded.

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However, first direct is not the only provider with an attractive interest rate at present.

Barclays is offering customers a 5.12 percent interest rate on savings p to £5,000.

Nationwide has a five percent offer on balances up to £1,500, but this is only available for a year.

Less familiar, yet protected banks including Kroo and Chase also have enticing offers.

Kroo is offering 3.03 percent on up to £85,000, and the new bank is FSCS accredited to protect money should the worst happen.

Chase, which is gaining in popularity, has an offer of three percent on balances up to £500,000.

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