First Direct is launching a 7% rate on a savings account from Thursday

The bank is doubling the interest rate on its Regular Saver Account from 3.5% to 7%.

Vicky Shaw
Tuesday 29 November 2022 12:24 EST
First Direct is increasing its savings rates from Thursday as the battle to attract customers continues (Tim Goode/PA)
First Direct is increasing its savings rates from Thursday as the battle to attract customers continues (Tim Goode/PA) (PA Archive)

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First Direct is increasing its savings rates from Thursday as the battle to attract customers continues.

As part of the changes, the bank is doubling the interest rate on its Regular Saver Account from 3.5% to 7%.

The account is available for First Direct 1st Account customers only and account holders can save between £25 and £300 a month in it.

The rate is fixed for the year from the time of opening.

But First Direct said that to help with the increased cost-of-living and to support those who currently have a Regular Saver Account open, it is increasing all current Regular Saver Accounts to the new rate of 7% from December 1.

Customers do not need to do anything as the accounts will be updated automatically.

Earlier this week, HSBC UK announced that from December 1 it will increase the rate from 1% to 5% on its Regular Saver account, and the rise will apply automatically to existing accounts.

Chris Pitt, chief executive of First Direct, said the Regular Saver “allows customers to build up a savings pot gradually, while receiving a ‘best buy’ return on this”.

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