Savings breakdown of first direct accounts raising interest rates

first direct raises interest on three accounts to offer savers more ‘competitive’ returns (Image: Getty) Savers banking with first direct will be pleased to see a new spate of interest rate rises on three of its most popular products. From August 10, customers will earn higher rates of return on first direct’s easy access account, the Bonus Saver, and its easy access ISA, in a move the bank describes as ‘giving a helping hand’ while living costs remain high. Chris Pitt, CEO of first direct, said: ‘The rising cost of living is having a big impact on people’s finances and we want to support our customers where we can. ‘We have a range of measures in place already to give a helping hand. These include competitive savings  rates, our interest-free overdraft facility and our longstanding switching incentive.’ Mr Pitt said the bank has also trained up a team of money coaches to help customers with guidance and tips around managing money. The move will give customers a “helping hand’ while living costs remain high. (Image: Getty) He added: ‘These new boosted saving rates will ensure customers receive competitive interest regardless of their saving needs – whether they’re using an easy access account to help with budgeting, saving a lump sum, or building a nest egg in our regular saver.’ Savers will be able to earn a minimum of two percent interest on easy access balances, up from 1.75 percent. Savers investing in the FD Bonus Saver will still be able to earn four percent interest on savings of up to £50,000, followed by a 2.3 percent rate paid on balances greater than that. However, the rate that’s paid if a withdrawal is made has been raised from 1.75 percent to two percent. Meanwhile, first direct’s easy access cash ISA will boast a new and improved 2.85 percent rate, up from 2.7 percent. This all comes on top of getting a return of 5.2 percent on first direct’s fixed rate account and a market-leading seven percent for regular savings. Britons can also snap up a £175 bonus when switching to a 1st Current Account – if eligible. Savers can open one of first direct’s easy access savers with a minimum deposit of £1 and interest is calculated daily and paid monthly. People must hold a first direct 1st Account or current account to apply, which can only be done by phone. There is no maximum balance and withdrawals are permitted with no notice and free of charge. FD Bonus Savings Account – four percent The Bonus Savings Account rewards people for establishing ‘virtuous’ saving habits, meaning the four percent interest rate is only paid on months people don’t make a withdrawal. On the months a withdrawal is made, interest will drop down to two percent. This account can also be opened with a minimum deposit of £1 and there is no maximum balance. Interest is calculated daily and paid monthly, and people must also have a 1st Account or current account to apply. Cash ISA – 2.85 percent The cash ISA can be launched with a minimum deposit of £1,000 and interest is calculated daily and credited to the account monthly. People must be aged 18 or over and have a 1st Account or current account, they also must reside in the UK. Unlimited withdrawals are also permitted however, these will count towards a person’s annual ISA subscription.