‘Even better value’ for savers as first direct increases interest rates

First direct is to increase the interest rates across its instant access accounts and on its cash ISA.

The new rates mean savers will be able to get up to 3.5 percent interest on their easy access savings.

The rate on the FD Savings Account has gone up by 0.5 percentage points from 1.3 percent to 1.35 percent.

Savers with a FD Bonus Savings Account will also get a boost to their savings. The rate excluding the bonus is increasing from 1.3 percent to 1.35 percent.

The rate on balances up to £25,000 including the bonus is going up from three percent to 3.5 percent.

‌‌READ MORE: Pension savers could get £9,000 a year income boost for retirement if they take action

The bank is also increasing the rate on balances over £25,000, including the bonus, from two percent to 2.3 percent.

Savers with a Cash ISA will also see their rates go up, as the interest rate for this account is increasing from 2.3 percent to 2.5 percent.

Lloyd Robson, head of banking and propositions at first direct, said: “As our customers continue to face rising costs, we want to offer value where it matters most.

“This is why we regularly review our interest rates to ensure customers receive a competitive return, whatever their saving needs.

Don’t miss…
NS&I makes payment change for Premium Bonds customers wanting to top-up savings[PREMIUM BONDS]
Tough annuity choice. Lock into income for life or gamble on drawdown[ANNUITIES]
DWP confirms date Universal Credit claimants can get extra £500 childcare boost[UNIVERSAL CREDIT]

“On top of this, customers can receive a £175 bonus for switching their current account to us and benefit from our award-winning customer service, knowing we’re available to help 24 hours a day, seven days a week.”

The new rates will come into effect on June 8. The announcement of the increased rates follows the launch of first direct’s One Year Fixed Rate Saver, which has a rate of 4.6 percent.

The bank is also offering seven percent with its Regular Saver Account, which is available only to 1st Account customers.

The interest rate on the account is fixed for 12 months from when the account is opened, with interest calculated daily and paid on the anniversary of when the account was launched.

We use your sign-up to provide content in ways you’ve consented to and to improve our understanding of you. This may include adverts from us and 3rd parties based on our understanding. You can unsubscribe at any time. More info

An account holder can deposit between £25 and £300 a month into the regular savings account.

If a person closes the account before the end of the 12-month term, they will only get the Savings Account variable rate.

Savers switching from another provider to open a 1st Account can get a £175 switching cash bonus.

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

A person has to pay in at least £1,000 within three months of opening the account to receive the switching offer.

Many banks and building societies have increased their rates over the past year as the base rate set by the Bank of England has consistently increased.

The central bank has continually hiked the base rate, which is currently at 4.5 percent in efforts to tackle rising levels of inflation.

Some analysts are predicting the central bank will increase rates again meaning some banks and building societies may increase their variable rates as well.

For the latest personal finance news, follow us on Twitter at @ExpressMoney_.

Source: Read Full Article