Last week, Martin Lewis urged everyone with money in a savings account to check how much interest they are making on it, warning that if the rate is under 1.5% then you should look elsewhere for a better one.
He said many savers could be missing out on much better interest rates which are available right now and advised that the minimum a savings account should pay is 1.5% and outlined a few options on the MoneySavingExpert.com website which you can read about here.
And now First Direct has announced it will be increasing its Regular Saver rate to 3.5% from Thursday, making it one of the best savings rates currently available from a UK bank.
The Regular Saver can be opened online or via the app from April 28 with a minimum of £25 and is available to all First Direct 1st Account customers.
Customers can pay in up to £300 per month, totalling £3,600 a year.
People whose monthly payments are less than £300 have the option to carry the allowance forward from previous months.
The new Regular Saver rate is 2.5% higher than the previous rate of 1%.
First Direct explained that customers must open the account from April 28 onwards in order to secure the 3.5% savings rate.
In addition to the rise of the Regular Saver rate, First Direct is also increasing rates across its Cash ISA, Bonus Savings Account and Fixed Rate Saver.
Commenting on the new rates, First Direct CEO, Chris Pitt, said: “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.”
New-to-bank customers looking to open a Regular Saver can also benefit from a £150 Current Account Switch Service incentive if they choose to move their current account.
Alternatively, an all-new non-switcher incentive of £20 is available for those who simply open a First Direct current account online or via the mobile banking app.
New First Direct savings rates
The rates below will be available from Thursday, April 28:
- Regular Saver - 3.5% (from 21.0%)
- Cash ISA - 0.35% (from 0.20%)
- Fixed rate Saver: 1 year on balances between £2,000 and £1 million - 0.45% (from 0.25%)
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