first direct boosts interest rates on ‘competitive’ savings accounts | Personal Finance | Finance

As savers search for the best savings deals, first direct has made its mark with a move today. The bank has promised to provide “even better value for customers” by increasing its easy access range.

Several accounts will see interest rate increases from Thursday onwards in a well-needed boost for savers.

Savers can expect to earn up to three percent interest on balances up to £25,000, as well as four percent on a fixed rate.

Lloyd Robson, head of banking and propositions at first direct, said: “We know it’s incredibly important for customers to get a competitive return on their savings and we are committed to delivering on this. 

“This is why we are focused on delivering value across the board for our customers across easy access, fixed rates and our Regular Saver account.

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“On top of our easy access options, existing customers can also opt to open our Regular Saver account, which offers an interest rate of seven percent.

“This is currently the highest rate available on the market for this type of product.”

The FD savings account currently has a rate of 1.20 percent, but the new rate has risen to 1.30 percent.

The FD Bonus Savings account is increasing as follows: 

• 1.20 percent – rises to 1.30 percent
• 2.75 percent (paid on balances of up to £25,000 including bonus) – rises to 3.00 percent
• 1.60 percent (paid on balances greater than £25,000 including bonus) – rises to two percent.

Interest is calculated daily and then paid on the anniversary of the account opening. 

Account holders can save between £25 and £300 per month with this account.

Customers cannot make partial withdrawals, so should be fully aware of this before opening the account.

Account closures processed before the end of the 12 month period will mean only the savings account variable rate will be paid.