The Benefits of Switching to a first Direct Current Account

It is always worth keeping an eye open for offers which can add something extra to the bank balance. Consumers are used to switching between savings accounts in the search for better interest rates, but switching current accounts can be more of a hassle. It can be worth the move though if a monetary bonus is at stake. First Direct is offering a £100 bonus for new 1st Account holders who deposit salaries of at least £1,500 a month into the account.

The bonus is aimed at encouraging customers to switch from their existing bank accounts. The bank offers a satisfaction guarantee, promising to give another £100 to those not happy with the service who close their account within 12 months of opening it, providing a monthly transfer of £1,500 has been made into the account for at least six months. The offer is only available to new customers.

The First Direct 1st Account has the drawback of a monthly fee of £10, but this is only applied if the stipulated monthly transfer isn’t made. Additionally the fee is waived for customers who have another First Direct product.

Consumers who open a current account with First Direct can benefit by having a savings account which pays 8% on monthly deposits of £25 – £300, up to a total of £3,600 per annum. The regular savings account offers the 8% rate for 12 months before reverting to a standard rate. Customers must make a monthly deposit and the rate is only applicable if a deposit is made every month from the First Direct 1st Account, and no withdrawals are made within the 12 months. Only existing First Direct customers can open this high interest regular savings account.

With low interest rates as standard across the board on savings which aren’t held in ISA’s, the rate on offer from First Direct is exceptional. However customers who don’t maintain the monthly deposits for 12 months, or who make a withdrawal, only receive a meagre 0.5%. It is also important to check the rate on offer after the first 12 months and transfer to anther high interest account if it plummets.

The current account gives an automatic interest free overdraft facility of £250 and offers an Easyswitch service to transfer all direct debits and standing orders from existing bank accounts, promising to take the hassle out of the switch. Additionally banking can be done online, through text messages and mobile banking.

In order to take advantage of the 8% savings rate it is worth transferring to the First Direct current account, at the same time earning the bonus £100. If the service doesn’t match up to expectations at least there is the additional bonus for switching out.