First Direct: Bank raises interest rates and offers savings account with 3.5 percent interest | Personal Finance | finance

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The Normal Savings Account is available to customers with a first direct current account that can be applied for online or via the app. The fixed rate of 3.5 per cent is for 12 months, with savers needing to deposit between £25 and £300 a month, totaling up to £3,600 a year.

Customers are encouraged to develop a “good savings habit” by putting money in the account so “the future will thank you”.

If a person’s regular payments are less than £300, the allowance can be carried over and more paid in later months.

Payments must be made by standing order each month, and customers can change the amount on the standing order at any time.

However, partial withdrawals are not possible – if the account is closed before the end of the 12 months, the interest will only be paid out at the variable interest rate of the savings account.

READ MORE: ‘What’s stopping you!?’ Four simple ways Brits can cut costs and save £2,200

Once the account has been opened, it can be viewed via the app.

Interest is calculated daily and paid out 12 months after the account is opened.

At the end of the 12-month term, the balance of the account along with the interest earned will be transferred to the customer’s daily savings account or e-Saver.

If a person has both accounts, the money goes to the fund that pays the highest interest rate.

In order to open a current account and access the Regular Saver, an applicant must be 18 years old and resident in the UK.

New users can get £150 when switching their money from another bank, or a £20 cash offer simply by investing with the group.

First Direct recently raised interest rates on several of its savings accounts to help customers impacted by the cost of living crisis.

The new Regular Saver rate is 2.5 percent higher than the previous rate of 1 percent.

Other savings products that have had interest rates increased include the bank’s Cash ISA, Bonus Saving Account and Fixed Rate Saver.

All of these accounts are available to new and old customers.

Interest rates are variable for all of the Institution’s products except for the Regular Saver, Personal Loan and Fixed Rate Savings offerings.

First Direct is a division of the HSBC Group.

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