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guitarman001

First Direct 8%

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8% up to £3.6k. Must have a current account with them paying £1.5k per month in. They give you £100 to transfer.

What do you think?

http://www2.firstdirect.com/1/2/savings;jsessionid=0000Yb_pNvw4Ajsarcw7kJrfJAm:11jmjm8n8?clear=true

Hi,

It's a regular saver capped at £300/month.

So if you saved £300 per month for 12 months, you'd receive returns of approximately £156 gross (£124 net) in interest after 12 months. Interest is calculated daily and paid on the 12 month anniversary after account opening.

I have one of these accounts and am in the process of closing it and leaving First Direct. I will lose the interest for the last 6 months, but should receive £100 for leaving FD so it won't sting too much. ;)

No partial withdrawals. Need to access your money in the first 12 months? You can close the account and receive interest at our standard variable Savings Account rate for the time your Regular Saver Account was open.

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One of those cases where if you have £300 or less to save every motnh it might be worth it but you still have to find somewhere to dump it after the year and go to the trouble of changing banks. All for what? £120?

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I know... part of me thinks I should go ahead and do it, better than a kick in the teeth etc. Such a hassle, though...

I can open only one more Lloyds Vantage account then have to find some other place for my money.

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I've two Lloyds Vantage accounts which are nearly full now, and monies in NS&I due to mature in 2 years. With monthly income now I need somewhere else to put it - a 3rd Vantage account? Then what? Lloyds deals now are very poor but all the faff with changing accounts etc...... ugh.

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I moved to First Direct a few years ago, after having had current accounts with Clydesdale, RBS, Alliance & Leicester and Barclays.

First Direct is the only bank that, in my experience, offers good customer service. You can call them up any time of day, and they always answer within 3-4 rings, you don't have to go through any touch tone or voice-controlled menus, and you get a real person, based in the UK, who is allowed by their bosses to think about your query and try and resolve it there and then. My experiences have always been positive, and I've been with FD for over 3 years now.

IMHO it would be well worth switching to them even if you didn't get £100 to do so.

The 8% saver is not a brilliant product, but even if you have more than £300 coming in a month, getting 8% on a portion of what you save a month isn't bad. I have my savings spread around various places, and the 8% account is just a bonus. Not sure if I'll start another one when my present 8% account expires next month, but that's purely due to personal circumstances, rather than it being a bad deal.

The tuppenceworth.

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The 8% saver is not a brilliant product, but even if you have more than £300 coming in a month, getting 8% on a portion of what you save a month isn't bad. I have my savings spread around various places, and the 8% account is just a bonus. Not sure if I'll start another one when my present 8% account expires next month, but that's purely due to personal circumstances, rather than it being a bad deal.

The tuppenceworth.

You only get 8% on the first month's £300

On the second month's £300 you get 11/12 of 8%

Down to 1/12 of 8% on the final month's £300

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You only get 8% on the first month's £300

On the second month's £300 you get 11/12 of 8%

Down to 1/12 of 8% on the final month's £300

Which is always better than sticking £700+300 in another account earning 3% per month and 11/12 of 3% in the for the next month.

Stick your money around as many of these accounts as you can, bounce it through the current accounts if you have to to meet the criteria, only putting whats left in some crap 3% savings account.

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Which is always better than sticking £700+300 in another account earning 3% per month and 11/12 of 3% in the for the next month.

Stick your money around as many of these accounts as you can, bounce it through the current accounts if you have to to meet the criteria, only putting whats left in some crap 3% savings account.

Earlier in the thread I said it was 4.3% - which it is in usual account rate terms.

I just get fed up of people repeatedly saying it is 8% because it is NOT 8% and the banks shouldn't be allowed to say that it is. There are probably lots of people assuming they get the headline rate on the whole amount.

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Earlier in the thread I said it was 4.3% - which it is in usual account rate terms.

I just get fed up of people repeatedly saying it is 8% because it is NOT 8% and the banks shouldn't be allowed to say that it is. There are probably lots of people assuming they get the headline rate on the whole amount.

It is 8%, 8% on the money in the account for the time it is in the account, you are limited to some deposit each month but that does not change the fact it is 8%. Its like saying that 3% isn't 3% because you only have £1000 to save each month so its less than 3% over a year for the total sum present at the end of a year. If people can't grasp that they will only be paid interest on the sum saved in the account over the time period the money is deposited then they should get financially literate.

Edited by zebbedee

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It is 8%, 8% on the money in the account for the time it is in the account, you are limited to some deposit each month but that does not change the fact it is 8%. Its like saying that 3% isn't 3% because you only have £1000 to save each month so its less than 3% over a year for the total sum present at the end of a year. If people can't grasp that they will only be paid interest on the sum saved in the account over the time period the money is deposited then they should get financially literate.

I have yet to meet anyone who thinks that a bank will pay a 3% annual interest rate if they withdraw their money after only one month. They know where they stand.

I do know of people who think headline rates for regular savers are misleading:

http://www.thisismoney.co.uk/money/experts/article-1638160/Was-I-ripped-off-on-my-Regular-Saver.html

http://www.bestisarate.org/Misleading-ISA-Interest-Rates.html

There is a "moneywise" website stating last year that an 8% regular saver was "inflation beating"!!! :lol:

http://www.moneywise.co.uk/banking-saving/savings-accounts-isas/savings-account-offering-8-launched

Check the comments.....

To be fair to First Direct they do state the total interest that would be returned. They should all do that and state what the total interest rate is on the maximum amount allowed in over the year.

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I have yet to meet anyone who thinks that a bank will pay a 3% annual interest rate if they withdraw their money after only one month. They know where they stand.

I do know of people who think headline rates for regular savers are misleading:

http://www.thisismoney.co.uk/money/experts/article-1638160/Was-I-ripped-off-on-my-Regular-Saver.html

http://www.bestisarate.org/Misleading-ISA-Interest-Rates.html

There is a "moneywise" website stating last year that an 8% regular saver was "inflation beating"!!! :lol:

http://www.moneywise.co.uk/banking-saving/savings-accounts-isas/savings-account-offering-8-launched

Check the comments.....

To be fair to First Direct they do state the total interest that would be returned. They should all do that and state what the total interest rate is on the maximum amount allowed in over the year.

I know what you are saying but there is no difference between a headline rate of 8% on only £300 going in each month and a standard savings rate of circa 3% on the same deposits basis (from the perspective of the net retuen is not x% where x is 8 or 3 respectively). Maybe it's me but if people are foolish enough to believe they will recieve interest on money not yet deposited then thats thier problem. As for inflation busting, 8% is, just not on a very large sum over 12 months, it is also inflation busting on the sum from month 2, although for just over and 11 month period.

As I said before, run this earner on enough accounts and you earn a respectable return, after the year is up rinse and repeat.

Also a good earner is to bounce £1k around a number of current accounts offering stupendious rates for balances up to £Y, leaving Y in each account to earn the interest.

Edit, just read you links and for the first-yes the person is stupid :lol: and for the second, had the used a couple of regular saver in the previous year then the £5340 would be available to obtain the rate as of 6 april :lol:

Edited by zebbedee

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My FD Regular Savers account reaches the 12 month mark next week. I'll be interested to see if I do get 8% interest on the £300 I've put in each month, after the comments on here

You don't need to worry about where to put it afterwards. Once the account has been closed, you can open a new one straight away & start putting the £300 per month in

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Earlier in the thread I said it was 4.3% - which it is in usual account rate terms.

I just get fed up of people repeatedly saying it is 8% because it is NOT 8% and the banks shouldn't be allowed to say that it is. There are probably lots of people assuming they get the headline rate on the whole amount.

We discussed a couple of years ago, and just as then, you're only partially correct.

If you are saving from surplus monthly income, then you are indeed receiving 8% (i.e. in January your £300 deposit earns 8% for 12 months, in February your second deposit earns 8% for 11 months and so on. Therefore you are receiving 8% on your entire amount deposited over 12 months - understand?). Why would you expect to earn 8% interest on money you have yet to earn and deposit? Wooly thinking!

If you are drip feeding in from a £3,600 balance, then you will earn 4.3% on the accruing First Direct balance PLUS the additional interest earned on the decreasing £3,600 balance. So your 4.3% is an underestimate.

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I never said I did. The only money you get 8% on, is the first month's £300

Are you intentionally obtuse on this issue, you get 8% on the full sum deposited for the time it is deposited, the banks are stating quite clearly that it is 8% because it is. They also state clearly that there are deposit limits in any month, regardless of these the money earns an 8% APR for the time deposited just as stated. They are also clear of the rate drops after a fixed time period.

The banks, nor I, are required to explain to people who, for whatever reason cannot grasp, that interest is not paid on monies, as it is for any savings account, yet to be deposited.

What is so hard to understand?

Do you think it should be advertised as 0.02138% DPR as opposed to a standard accounts 0.008211% DPR. Does that make it clear for you :lol::lol::lol:

Edited by zebbedee

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Are you intentionally obtuse on this issue, you get 8% on the full sum deposited for the time it is deposited, the banks are stating quite clearly that it is 8% because it is. They also state clearly that there are deposit limits in any month, regardless of these the money earns an 8% APR for the time deposited just as stated. They are also clear of the rate drops after a fixed time period.

The banks, nor I, are required to explain to people who, for whatever reason cannot grasp, that interest is not paid on monies, as it is for any savings account, yet to be deposited.

What is so hard to understand?

Do you think it should be advertised as 0.02138% DPR as opposed to a standard accounts 0.008211% DPR. Does that make it clear for you :lol::lol::lol:

I just think that as other accounts are advertised on an annual percentage basis they all should. I have quoted instances of how some people feel as though they have been duped by the headline 8%.

Just answer me this then.

Say you open one of these 8% accounts with £300 on July 1st how much interest do you get on your money for the nights of July 2nd and July 3rd?

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I just think that as other accounts are advertised on an annual percentage basis they all should. I have quoted instances of how some people feel as though they have been duped by the headline 8%.

Just answer me this then.

Say you open one of these 8% accounts with £300 on July 1st how much interest do you get on your money for the nights of July 2nd and July 3rd?

That would depend on which of these accounts we're talking eg HSBC (10% I think, up to 250 per month but missed months can be paid in later), but assuming interest paid on the money for the time it is deposited (full days only) then 13p at 8% compared to 5p for a standard 3%er account, using the DPR i posted above assuming correct.

Edit, thats just my, and the, point, they are advertised at an annual interest rate, you can only get the annual rate on the money if the money is there for a year as with any account advertised at an APR of x% be x 3, 8 or 25000 (pay day loans anyone). This does not change the fact that you get an annual rate of 8% on monie deposited whenever.

Lets imagine Joe comes along and opens a 3% account and instead of putting money in he waits 11 months. Will a sensible Joe think he will get 3% on his £10k or does he understand that he'll only get 0.247%?

Edited by zebbedee

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That would depend on which of these accounts we're talking eg HSBC (10% I think, up to 250 per month but missed months can be paid in later), but assuming interest paid on the money for the time it is deposited (full days only) then 13p at 8% compared to 5p for a standard 3%er account, using the DPR i posted above assuming correct.

Edit, thats just my, and the, point, they are advertised at an annual interest rate, you can only get the annual rate on the money if the money is there for a year as with any account advertised at an APR of x% be x 3, 8 or 25000 (pay day loans anyone). This does not change the fact that you get an annual rate of 8% on monie deposited whenever.

Lets imagine Joe comes along and opens a 3% account and instead of putting money in he waits 11 months. Will a sensible Joe think he will get 3% on his £10k or does he understand that he'll only get 0.247%?

The thread is about First Direct 8% for £300 a month I cannot equate your 13p to that.

So on July 2nd and July 3rd before tax isn't it £300 x 0.08 = £24 per year, so per day divide by 365 = 6.6p?

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