We’ve teamed up with First Direct to offer a ‘golden hello’ of £125 to anyone who opens a 1st account with the award-winning online back.
That’s a tasty £25 more than is on offer to people who don’t sign up via MoneySuperMarket.
The technical term is ‘no-brainer’!
£125 when you join, £100 if you leave
First Direct prides itself on its high levels of customer service – so much so that it will pay you a further £100 if you decide to close your 1st account within 12 months of joining.
This account, unlike offers from the likes of Santander, Nationwide and TSB, does not pay interest, and there are no rewards such as cashback on your spending. So you’re effectively trading the potential to earn interest for that chunky £125 payment.
The Santander 123 current account pays 1% on balances over £1,000, 2% on balances over £2,000 and 3% on balances over £3,000 (up to £20,000). So a balance of £5,000 would earn you £150 in a year.
The Nationwide FlexDirect and TSB Classic Plus accounts both pay 5.00% (on the first £2,500 and £2,000 respectively). Nationwide only pays interest for the first 12 months.
If you put the full £2,500 in to a FlexDirect account and maintained the balance for a year, you’d earn £125 in interest.
Putting (and maintaining) £2,000 in the TSB account would earn interest of £100 a year.
But remember that bank interest is taxed, so you’d lose 20%, 40% or 45% depending on how much tax you pay. There’s no tax to pay on the First Direct incentive.
With the First Direct account, you get a £250 interest-free overdraft buffer. And if you are overdrawn by more than that, the rate is a relatively low 15.9%.
The account carries a £10 monthly fee BUT you don’t pay this if you pay in £1,000 a month, maintain a monthly balance of £1,000 or have another First Direct product. And the first six months is fee-free for everyone.
Switch with confidence
Many people are wary of switching bank, thinking it will be a major hassle, with the risk of direct debits going stray and incoming payments not being received.
But thanks to the official Current Account Switch Service, you’re guaranteed a trouble-free switch within seven working days.
Please note: any rates or deals mentioned in this article were available at the time of writing. Click on a highlighted product and apply direct.