First Direct has doubled its Regular Saver interest rate today (1st December 2022) from 3.5% to 7.0%. Savings rates recently reached the highest level in almost 10 years thanks to runaway inflation and increases to the Bank of England base rate. First Direct is one of the latest providers to pass down the increase in rates to savers and in this article, we explain how First Direct's Regular Saver works, how much you can earn in interest and how you can also get £175 for switching to a First Direct current account. If you would like to see how First Direct's Regular Saver compares to other savings accounts, head over to our Savings Best Buy tables.
What is First Direct's Regular Saver?
First Direct's Regular Saver account is a 12-month fixed-term savings account that offers 7.00% interest on cash savings. As it is a fixed-term account you are unable to withdraw any money for 12 months from the account opening. You can access savings prior to this, however, you'll need to close the account and as a result, you will not benefit from the 7.00% savings rate. You will receive interest on the money that you have saved, but only at the Savings Account variable rate of 0.65% AER.
With First Direct's Regular Saver you will need to make regular deposits, which can vary between £25 - £300 a month. The account is limited to a maximum annual deposit amount of £3,600 and if you are unable to make the maximum deposit of £300 each month, the unused allowance can be carried over to the following month. So, if you only make a £25 deposit in the first month, you can carry over £275 of unused allowance to the following month. The interest rate payable on the account is paid daily and is paid 12 months after the account has been opened and if you make the maximum deposit of £3,600 over the course of the year you can expect to receive approximately £136.50 in interest.
The First Direct Regular Saver is only available on sole First Direct 1st accounts but if you are a couple and each have a personal First Direct Current account you can each open a Regular Saver account.
First Direct Regular Saver key points
- 7% fixed interest for 12 months
- Must be open for a minimum of 12 months to qualify for the interest rate
- Regular deposits must be made each month
- Minimum regular deposit amount of £25
- Save a maximum of £3,600 per year
- Apply via the app or via online banking
- No withdrawals are allowed before the 12-month period ends
- If you are not a First Direct current account holder you can get £175 to switch
How to get a First Direct Regular Saver
How to apply if you're an existing First Direct current account holder
Existing First Direct 1st Account holders can apply for a First Direct Regular Saver via the 'Products' section of the First Direct app or via online banking.
How to apply for the rate if you have an existing Regular Saver
If you have an existing Regular Saver account with First Direct you will be eligible for the rate which will automatically change from 1st December.
How to apply if you are not an existing First Direct current account holder
If you do not hold an existing First Direct current account you will need to open one to gain access to the Regular Saver. Once the account has been opened you can apply for the Regular Saver via the app or online banking. If you are considering switching bank accounts you could switch to First Direct and receive a payment of £175 for switching. If you don't wish to switch and just choose to open an account you can still benefit from a £20 welcome payment. Find out more in our article, 'Best bank account switching offers'.
Alternatives to First Direct's Regular Saver
In the following table, we compare First Direct's Regular Saver to other Regular Savers on the market right now. The easiest way to compare the best savings rates on the market right now, however, is via our Savings Best Buy Tables. You can bookmark this page for weekly updates on the best rates. We also share the best savings rates in our article, 'Best savings account in the UK 2022'.
Best Regular Savings Accounts - a comparison
| First Direct | NatWest | RBS | Principality | HSBC | |
| Account name | Regular Saver Account | Digital Regular Saver | Digital Regular Saver | Christmas 2023 Regular Saver Bond | Regular Saver |
| Interest Rate | 7.00% | 5.12% | 5.12% | 5.00% | 5.00% |
| Minimum opening balance | £25 | £1 | £1 | £1 | £25 |
| Minimum required per month | £25 | £1 | £1 | £0 | £25 |
| Maximum allowed per month | £300 | £150 | £150 | £125 | £250 |
| How to apply | Mobile, Online | Mobile, Online | Mobile, Online | Branch, Online | Branch, Online, Telephone |
| Bank's current account required to open |  |
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| Summary | Can carry over the unused allowance each month. | 5.12% AER interest on your first £1,000, 1.00% on amounts between £1,001 and £5,000 and 0.50% paid on amounts above £5,000. | 5.12% AER interest on your first £1,000, 1.00% on amounts between £1,001 and £5,000 and 0.50% paid on amounts above £5,000. | No obligation to pay into the account every month. Can make multiple monthly deposits as long as does not exceed the maximum monthly amount. | When matured the money is transferred to the Flexible Saver or Instant Access Savings. |
| FSCS Protection | Shared Licence with HSBC | Own Licence | Own Licence | Own Licence | Shared Licence (First Direct) |
(Source: SavingsChampion.co.uk Correct as of 01/12/22)
