First Direct ditches £10 a month fee for 1st Account
HSBC-subsidiary First Direct is making its flagship current account, the 1st Account, fee-free from 14 September.
Up until now the account has only been free for customers who do one or more of three things: Pay in at least £1,000 a month; hold an average monthly balance of £1,000; or have a savings, mortgage, credit card, loan or home insurance with First Direct. Otherwise the account costs £10 a month (£120 a year).
But First Direct has contacted accountholders to inform them that the £10 a month fee will be scrapped for both new and existing customers. It says it doesn’t apply to most people anyway.
The bank is also reducing how much it costs to send a CHAPS payment from £25 to £17, and removing charges for duplicate copies of bank statements.
First Direct is currently offering £50 to customers who switch their banking to the 1st Account using the Current Account Switch Service and depositing at least £1,000 within three months of opening the account.
1st Account holders are eligible for First Direct’s regular saver account which pays 5 per cent to savers who put away between £25 and £300 a month.
New customers who don’t stick with First Direct can claim £100 if they leave after six months – to get the cash you must have paid at least £1,000 a month into your account for six months, not have banked with First Direct before, and used the Current Account Switch Service to switch to the bank initially.