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first direct doubles interest rate as bank announces 'market leading' 7% savings offer

Daily Express logo Daily Express 02/12/2022 Ruby Flanagan
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From tomorrow, first direct will be offering an of seven percent on one of its most popular accounts. The Regular Saver account was offering a rate of 3.5 percent previously. The account is only available for existing first direct 1st Account customers only and any new non-first direct customers who want to benefit from the rate will need to open a 1st Account before they are then able to open the Regular Saver.

All first direct customers, both new and existing, will need to apply for the account online.

The rate will be fixed, so first direct will offer the seven percent interest rate for an entire year from when the account is opened.

The bank will also be switching all current Regular Saver Account holders to the new interest rate from December 1.

First direct said these customers do not need to do anything as it will be updated automatically.

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first direct © GETTY first direct

Money Saving Expert founder Martin Lewis co-presented Good Morning Britain with Susanna Reid today and revealed how much it costs to keep Christmas lights on.

The financial journalist said people are vowing not to put their Christmas lights on during December to save on energy bills but lights don't cost that much to run.

Alongside this rise, first direct is also increasing the interest rates across several other of its savings products.

From Thursday, the bank's FD Savings Account will offer an interest rate of 0.65 percent up from 0.5 percent.

First direct's FD Bonus Savings Account will now offer a rate of 2.6 percent on balances of up to £25,000, up from 1.65 percent.

With this account, first direct will then give a rate of one percent on balances over £25,000 up from 0.75 percent.

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The bank's Cash ISA will give an interest rate of 2.3 percent up from the previous 1.4 percent and its one year Fixed Rate Saver will be offering an interest rate of 3.5 percent up from 2.25 percent.

Chris Pitt, CEO of first direct, 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 7.00 percent.

"This allows customers to build up a savings pot gradually while receiving a best-buy return on this."

graph showing interest rate rise © EXPRESS graph showing interest rate rise

With the savings account, people can deposit between £25 and £300 every month and people will need to set up a standing order for the rest of the year.

The interest on the Regular Savers account is calculated daily and is paid in a lump sum when the account matures

Customers are unable to make withdrawals from the account so their money will be locked away for the entire 12 month period.

If someone would like to close their account before the end of the 12-month period, then the Savings Account variable interest rate will be paid.

Alongside this, first direct is currently offering new customers a £175 switching offer for its 1st account.

The cash bonus is available to all new customers who switch their full banking to first direct using the Current Account Switch Service (CASS).

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

If someone is thinking of switching then this would likely be the best time to as people would gain access to the new seven percent offer.

First direct said if customers are not ready to switch just yet, then they are currently offering a £20 incentive for just opening a new 1st account without completing the entire switching process.

Customers just need to open a 1st Account and log in to the mobile app or digital banking to receive this bonus.

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