Time for a new current account? Among the many benefits of First Direct’s 1st Account is a £175 cash switching bonus, a £250 interest-free overdraft and tried-and-tested great customer service.
Representative example
If you use an arranged overdraft of £1,200, you’ll be charged the Equivalent Annual Rate of 0% on the first £250, then 39.9% (variable). Representative APR 30.5% (variable).
Pros
- Linked Regular Saver account paying 7.0% AER
- £250 interest-free arranged overdraft
- No monthly fee
Cons
- Cash welcome bonuses only for new customers*
- Interest-free overdraft subject to status
- No cashback, perks or discounts
Table of Contents
Key Features
- £175 cashback when you switch your account to First Direct
- Access to linked Regular Saver account paying 7.0% AER (gross) fixed for 12 months
- Interest-free overdraft of £250 (subject to status), then arranged overdrafts are charged at 39.9%. AER (variable)
Will I be eligible?
To qualify for a First Direct 1st Account, you need to be aged over 18, a UK resident and not have been declared bankrupt or registered for an Individual Voluntary Agreement (IVA) in the past six years. You’ll need a phone number and email address for contact.
To get the £175 cash offer, you need to open a 1st Account and switch your everyday banking to First Direct using the Current Account Switch Service, including moving at least two direct debits or standing orders. You’ll then also need to pay in at least £1,000 and make at least five debit card payments and log in to your digital banking account within 30 days of opening the account.
The £175 switching offer is limited to one payment per customer or joint account.
Further terms and conditions apply. To get the £175 cash offer, you can’t have held a First Direct product before, and you can’t have opened a HSBC current account since 1 January 2018.
What more should I know?
If you have a First Direct 1st Account, you can also open a First Direct Regular Saver paying 7.0% AER.
You can save between £25 and £300 for a fixed 12-month term in this account. If you save £300 every month for 12 months, you’ll earn approximately £136.50 in gross interest. Interest is calculated daily and paid 12 months after you open the account.
The £250 interest-free overdraft makes the 1st Account a cheaper overdraft option than other banks. After that arranged overdrafts are charged at 39.9% AER (variable), giving a representative rate of 30.5% APR variable (assuming an arranged overdraft of £1,200).
As an added benefit, First Direct does not charge any fees for using your debit card overseas. In contrast, most banks charge around 2.99% for spending and cash machine withdrawals abroad.
First Direct’s switching offers are subject to status and can be withdrawn at any time.
The internet bank, which is part of HSBC, is renowned for its top customer service. Research and ratings agency Fairer Finance awards First Direct a score of 75% for customer experience. This is the top highest score of any bank in its list.
Is the First Direct 1st Account right for me?
The combination of the £175 for switching to First Direct and top customer service make the First Direct 1st Account a good bet for a current account. There’s no monthly fee to run the 1st account and a £250 fee-free and interest-free overdraft for eligible applicants.
What are my alternatives?
There are other current account switching incentives available. Most incentives will have terms attached, for example, some might be only available to those who have never had a current account or other financial product with the bank before. In other cases, incentives may only be available to existing customers (such as savings or mortgage customers).
You’ll usually have to make a full current account switch to be eligible for a cash bonus, and you’ll typically need to wait a fixed period of time, such as three months, before the cash incentive is paid into your account.
The cash incentives can be lucrative, but be aware offers can be withdrawn at short notice so it’s important to compare the deals available at the time, including any T&Cs, to ensure it is suitable for you before you apply to switch.
