Now you can get even more cash to join First Direct
First Direct has increased the switching incentive on its 1st Account to £125, up from £100.
With this move, the bank hopes to entice people who are dissatisfied with their current provider.
However, be aware that you have to pay in at least £1,000 a month for the first three months in order to get the bonus. You'll also need to either pay in £1,000 a month, or keep an average balance above £1,000 in the account, or take out another First Direct product such as a savings account, credit card, loan or mortgage, otherwise you'll have to pay a £10 monthly fee. This fee is automatically waived for the first six months you have the account.
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How it compares to other current accounts
Though that £125 incentive seems rather appealing, how does the 1st Account compare to the other current accounts out there? We've rounded up some of the most competitive deals on the market to help you make up your mind.
Product and provider | Interest Rate (AER) | Authorised overdraft | Annual fee | Switching incentive | Minimum monthly deposit | Perks |
5% interest rate for first year on balances up to £2,500, 1% thereafter | Free for 12 months, 50p a day thereafter | None | None | £1,000 | Access to exclusive products | |
5% on balances up to £2,000 | 19.94% and | None | None | £500 | Commission-free foreign currency and non-sterling travellers cheques | |
Lloyds Bank Club Lloyds Current Account | 4% on balances between £4,000 and £5,000; 2% on balances between £2,000 and £3,999.99; 1% on balances between £1 and £1,999.99 | Free for 3 months, 50p a day thereafter | None | None | £1,000 | Choose an annual lifestyle benefit from: |
3% on balances between £3,000-£20,000; 2% on balances between £2,000 and £2,999.99; 1% on balances between £1,000 and £1,999.99 | £1 a day | £24 | None | £500 | 1% cashback on water and council tax bills, 2% cashback on gas and electricity bills and 3% cashback on mobile and home phone bills, broadband and TV packages | |
Tesco Bank Current Account | 3% on balances up to £3,000 | 18.9% | £5 per month if £750 minimum deposit not met | None | £750 | Collect extra Clubcard points in and out of Tesco with your debit card. One point for every £4 spent in Tesco and one point for every £8 spent out of Tesco in each card purchase transaction. |
Bank of Scotland Classic Account with Vantage | 3% on balances of £3,000-£5,000; 2% on balances of £1,000-£2,999.99; 1.5% on balances of £1-£999.99 | 19.94% | None | None | £1,000 | Earn up to 15% cashback with Everyday Offers and the chance to win one of your purchases back up to the value of £500 on a monthly basis with 'It's on Us' |
2% | 9.9% and £6 per month | None | £150 | £1,000 | £150 switching bonus when you use the Current Account Switch Service and credit the account with £1,000 within 31 calendar days following your switch completion | |
2% | 9.90% EAR | None | £150 | £1,000 | £150 switching bonus when you use the Current Account Switch Service and credit the account with £1,000 within 31 calendar days following your switch completion | |
0% | 15.9% | £120 (£10 per month) if £1,000 monthly deposit is not made or you don't keep £1,000 in the account or you don't hold another First Direct product | £125 | None (£1,000 if you want to avoid £10 fee and don't meet other criteria) | £125 switching bonus, providing you pay in £1,000 a month for first three months | |
0% | 18.9% | None | £100 | £800 | £100 switching incentive plus £25 charitable donation when you use the Current Account Switching Service, pay in at least £800 into the account within 31 days and set up two active direct debits | |
0% | 18.9% | None | £100 | None | £100 switching incentive plus £25 charitable donation when you use the Current Account Switching Service, pay in at least £800 into the account within 31 days and set up two active direct debits | |
0% | 19.89% and £6 per month | None | None | None | Earn a minimum of 1% cashback at selected retailers and an additional 1% on contactless purchases | |
0% | 19.89% and £6 per month | None | None | None | Earn a minimum of 1% cashback at selected retailers and an additional 1% on contactless purchases |
Even though the switching incentive seems pretty appealing, it's worth noting that both Yorkshire Bank and Clydesdale Bank are both offering a higher switching bonus of £150 and both pay credit interest of 2% on balances up to £2,000.
Top-notch customer service
Though the 1st Account doesn't beat its competitors in terms of interest rates, First Direct is always top dog when it comes to customer service. You can see this from the generous £100 offer it makes if you decide to switch away from it to another bank in the second six months you have your account.
First Direct is continually winning awards for its high standard of customer service. The bank beat market favourite Lush in September 2014's Which? customer service survey with an impressive 87%. Scores were based on customers feeling valued, knowledge of products and services, helpfulness of staff, resolving problems or complaints and access the customer support.
It also topped last year's Nunwood Customer Experience Survey of 250 top UK brands, knocking John Lewis off the number one spot.
Does the enhanced bonus make you want to bank with First Direct? Let us know in the comments below.
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