first direct launches 5% savings accounts as bank increases interest rates

Savers with first direct will be able to enjoy boosted interest rates on a range of accounts and the group is launching a new account offering five percent.

With the increases, customers with an easy access FD Bonus Savings Account will be able to get four percent interest on balances up to £50,000.

These are the full list of the new rates, which will come into effect today and tomorrow:

• Fixed Rate Saver – Five percent (up from 4.6 percent)
• FD Savings Account – 1.75 percent (up from 1.35 percent)
• FD Bonus Savings Account:
• Excluding bonus – 1.75 percent (up from 1.35 percent)
• Balances up to £50,000, including bonus – Four percent (up from 3.5 percent)
• Balances over £50,000, including bonus – 2.3 percent (unchanged).

The new account is the Fixed Rate Savings Account, offering a rate of five percent. This is available to 1st Account customers only.

People who are not currently a first direct customer will need to open a 1st Account to open one of the new accounts.

Savers can deposit between £2,000 and £1million and can have several Fixed Rate Savings Account.

The account can be opened via the chatbot within the first direct app, by online banking or by calling 03455 873 967.

Chris Pitt, CEO of first direct, said: “As our customers continue to face rising costs and in light of last week’s base rate increase, we are committed to offering value.

“We’ve reviewed our interest rates to ensure our customers receive a competitive return, whatever their saving needs.

“We also know that people are facing a lot of pressure at the moment and we are firmly focused on supporting our customers in this difficult environment.

“We already have a range of measures in place to help people and we’re working to increase the level of support available.”

He urged any customers who are concerned about their financial situation to contact the bank immediately.

Mr Pitt said: “The earlier we have that conversation, the quicker we’re able to help. We also want to remind all customers that talking to us about possible options will never impact their credit score. We are here to support you.”

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