first direct hikes interest rates on savings account by 3.5% – Make money ‘go further’

Couple stunned by potential savings

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Recently, the financial institution confirmed that many of its savings accounts have received a rate rise to help combat the cost of living crisis. One of the savings products has experienced a “market-leading” interest rate increase of 3.5 percent. With the hike being implemented on April 28, first direct customers can enjoy the 3.5 rate rise through the bank’s Regular Saver account.

This particular account can be opened online or via the app with a minimum of £25 and is available to all first direct first Account customers.

Those who save using the account can pay in up to £300 per month, totalling £3,600 a year.

Furthermore, savers whose monthly payments are less than £300 have the option to carry the allowance forward from previous months.

Overall, the new Regular Saver rate is 2.5 percent more than the previous rate of one percent.

READ MORE: Woman, 88, in tears after losing £36,000 savings – after ‘scrimping’ for 50 years

It should be noted that new first direct customers seeking to open Regular Saver can get a £150 CASS switching incentive if they choose to move their current account.

Anyone who is interested in opening this account can do so as of April 28 to claim the 3.5 percent rate increase.

On top of this, first direct has also raised interest rates across multiple other saving products.

The full breaking down of the rate increases for the first direct’s savings account include:

Chris Pitt, first direct’s CEO, cited the country’s current cost of living crisis as to why the bank has decided to increase its rates.

Mr Pitt explained: “As inflation and household bills continue to rise, so too does the need for people to make their money go further.

“This market-leading rate reflects our commitment to ensuring customers – both new and existing – can squeeze every penny out of their hard-earned pounds.”

As it stands, inflation has hit seven percent in the UK and energy bills are expected to go up by £693 this year.

According to Mr Pitt, there are multiple other reasons people should join with first direct to improve their savings.

He added: “New-to-bank customers looking to open a Regular Saver can also benefit from a £150 CASS switching incentive if they choose to move their current account.

“Alternatively, an all-new non-switcher incentive – £20 – is available for those who simply open a first direct current account.

“Customers looking to open an account can do so online or via the app.”

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