first direct customers can get 7% with regular savings account

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Savers with first direct can benefit from the certainty of a fixed seven percent on their savings for a year with the Regular Saver account. People can deposit between £35 and £300 a month into the account.

Interest is calculated daily and paid at the end of the 12-month period. If a person saves the full £300 for 12 months, they will deposit £3,600 and get £136.50 in interest.

A person will need to have a first direct 1st Account to open the account, as the standing orders will be taken from the 1st Account.

The first payment will be taken on the day the individual opens the Regular Saver Account with another 11 monthly payments to follow, which can only be made by standing order.

A person can apply to open an account via the app or via Online Banking. The account can also be managed with the app or using Online Banking.

Chris Pitt, CEO of first direct, previously said: “Our Regular Saver Account allows customers to add to their savings regularly, while earning a competitive interest rate, market-leading at seven percent.”

A person must be aged 18 or over and be a UK resident to open an account. They will need to provide details of their phone number and email address.

The account can only be held in a single name with no joint accounts permitted and a person can only have one account open at any one time.

first direct also has a switching offer for customers switching to open a current account with the bank.

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The free £175 is on offer to those who open a 1st Account and use the official Current Account Switching Service to move over their funds.

A person will need to deposit at least £1,000 within three months of opening the account to receive the money.

The funds should be paid out within 28 days of the criteria being met. The offer is exclusively for new customers.

Customers with a 1st Account can also get an interest-free overdraft up to £250 with a rate of 39.9 percent on any higher amounts.

The base rate set by the Bank of England has continued to increase over the past year with many banks increasing their rates on their savings accounts.

The central bank increased the base rate for the 11th consecutive time last week from four percent to 4.25 percent.

Bank bosses have been upping the rate in efforts to curb spending and reduce inflation, which jumped recently from 10.1 percent to 10.4 percent.

Analysts are predicting inflation will fall over the coming months with the base rate expected to eventually drop as well.

Richard Campo, founder of Rose Capital Partners, said: “Many experts currently believe that rates will fall to around 3.5 percent over the next five years.

“Yet just a week ago, we were prepared for a levelling out at four percent, versus three to four weeks ago when we were braced for more rate rises on the cards.

“But, back in January, we felt that rates would drop to as low as 3.5 percent later this year / early next.

“What this proves is that we’re living through a constantly shifting period impacted by inflation uncertainties, wobbles in the global banking sector and recession fears (or not) on the horizon.”

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