You are here: Home - Saving-Banking - News -

First Direct doubles Regular Saver interest rate to 7%

0
Written by:
29/11/2022
Starting Thursday 1 December, First Direct is joining those raising the rates on customers' savings, doubling what it pays on its Regular Saver Account from 3.5% to 7%.

As with most of the recent increases on savings interest, conditions apply. The account is only available for existing First Direct 1st Account customers. New, non-First Direct customers who want the rate will need to open a 1st Account and then open a Regular Saver. Both new and existing customers must apply for the account online. 

You have to keep the money in the account for a full year without withdrawals. The 7% interest would be paid in a lump sum after 12 months.

Existing holders of a Regular Saver account will automatically switch to the higher rate beginning Thursday.  Account holders can save between £25 and £300 a month. (First Direct was offering people £175 to switch from other banks under certain conditions.)

First Direct: ‘Customers earn a market-leading 7%’

Chris Pitt, the First Direct chief executive, said: “We are committed to giving savers a good return on their money, particularly in the context of the increases in the cost of living and the current high inflation environment.

“Our Regular Saver Account allows customers to add to their savings regularly while earning a competitive interest rate, market-leading at 7%. This allows customers to build up a savings pot gradually, while receiving a best-buy return on this.”

The First Direct move follows word that HSBC would hike its rate on Regular Saver accounts from 1% to 5% starting 1 December. Other lenders including the Leeds Building Society and the Nationwide Building Society will also bump up their rates this week.

The trend follows a move by the Bank of England which increased its lending rates by 0.75 percentage points to 3% as it battled runaway inflation and a recession, causing lenders to charge higher rates to borrowers.

There are 0 Comment(s)

If you wish to comment without signing in, click your cursor in the top box and tick the 'Sign in as a guest' box at the bottom.

Your right to a refund if travel is affected by train strikes

There have been a wave of train strikes in the past six months, and for anyone travelling today Friday 3 Febru...

Could you save money with a social broadband tariff?

Two-thirds of low-income households are unaware they could be saving on broadband, according to Uswitch.

How to help others and donate to food banks this winter

This winter is expected to be the most challenging yet for the food bank network as soaring costs push more pe...

What will happen if rates change

How your finances will be impacted by a rise in interest rates.

Regular Savings Calculator

Small regular contributions can build up nicely over time.

Online Savings Calculator

Work out how your online savings can build over time.

DIY investors: 10 common mistakes to avoid

For those without the help and experience of an adviser, here are 10 common DIY investor mistakes to avoid.

Mortgage down-valuations: Tips to avoid pulling out of a house sale

Down-valuations are on the rise. So, what does it mean for home buyers, and what can you do?

Five tips for surviving a bear market mauling

The S&P 500 has slipped into bear market territory and for UK investors, the FTSE 250 is also on the edge. Her...

Money Tips of the Week