First Direct

[stuart100]

Does anybody have a current account with First Direct, and will you now be switching your account after they announced they will start charging some customers �10 a month?

[greenrook]

I have a first direct a/c but I haven't heard about this �10 monthly charge, what's that about then?

[stuart100]

If you pay less than �1500 into the account each month and don't have any other First Direct products, then a �10 charge will be made.

I guess they'll write to you before they start charging

[Ethel]

Or maintain a balance of �1500 in your current account...

If anybody has a first direct account current account and don't meet the requirements for free banking, get a credit card.

Cut it up, don't use it. But you will have another First Direct product that qualifies you for free banking.

[buildersmate]

I am also waiting to find out the 'small print' terms of this.
Having an irregular, lumpy income means I may end up setting up a Standing Order to move �1500 from a high-interest savings account to First Direct each month, only to pay it back a day later.
I'm sure we will all find our own cunning way to avoid the thing. (I like Ethel's idea - stars required, please Author?)

[jmahdavi]

You can also open a savings account with a balance of just �1 and leave it there and you will also qualify for free banking.

[greenrook]

well, this is all useful stuff - I have a first direct card also, though it's seldom used, so I'll be OK. Makes you think though...?

[Ethel]

I believe this is going to be typical of most banks in the near future.

Now their extortionate charges are being severely curtailed and customers are successfully reclaiming the charges made over the last few years, they have to make their profits somehow.

Free banking is a relatively new thing and was first introduced in the UK only 20 years ago. I remember being charged for every cheque I issued (before direct debits and internet banking) and every standing order.

The UK is one of the few countries that offer free banking, and charged banking is considered normal in a lot of countries. Virtually every country in Europe and the USA charge for current accounts.

http://www.thisismoney.co.uk/news/article.html ?in_article_id=411250&in_page_id=2

[buildersmate]

My elephantine memory goes that far back too, and having to pay for each cheque.

[stuart100]

There's no such thing as free banking though.

The unauthorised overdraft charges and interest rates make up for that.

In other countries there's no such thing as an 'unauthorised overdraft', if you hit your arranged limit any cheques you use or standing orders you pay will simply bounce.

[aristotle]

My memory goes back even further. I quit NatWest back in the 70s when they brought in charges if you had less than �100 in your account at any time. The other banks didn't follow suit then so Nat West dropped them. I like to think it was my action that did it.

[STAH]

I have had a first direct bank account for many many years. I work for HSBC, and I decided to change my salary being mandated from first direct to HSBC when I joined the bank, although I kept my first direct account open for bills. Before I worked for the bank, I had all my banking done through first direct.

Fortunately, we meet the criteria as we pay �1700 a month into the account for the mortgage, utility bills etc., but I also have a first direct gold visa (which I never use). Because of this, I escape the charge on two counts.

I would take heed to Ethel's pertitent comments. Either open a savings account with �1, or take a visa card with them.

I would always remain loyal to first direct. Not because they are part of the HSBC group whom I am employed by, it is because I view their service to be market leading (better than HSBC I add). I have always received exemplary service from them. Nothing is too much trouble, they are available 24/7, their service is not automated, and they have UK call centres only.

I feel that first direct are seeking for further business penetration through waiving the charge should you take out another product. I feel as though this is good business sense, and the consumer benefits through avoiding the �10 charge.

So, to answer your question. If I had a first direct account with less than �1500 per month paid into it, I would take out another product to avoid the charge. I would do this as I feel as though I will not get better service from any other financial institution on the High Street.

[sukkie]

The unfortunate part of the change is that the less well off people have to pay the charge. Why not make the charge for everyone who banks OVER �1500 instead.

[mirandamac]

I think the last comment is the most imprtant. Its yet another charge that is going to hit those who have least. A charge at this level won't affect me if the main part of HSBC introduce it but where does it end? HSBC are already making it clear they do not want customers who don't have either large borrowing or large income/investments. They first of all introduced the Premier customers and are now even grading them. They now have the bank ac plus - a way of making a charge on the account by making it look as if other services are being offered (which you may not need anyway)

[buildersmate]

Then it's surely no different than negotiating for anything. Those that can, do, those that can't lose out - unless Government (or other body) decides to legislate support for whatever it is to a minimum level/standard.
Not condoning it, or even defending it - it's called survival of the fittest. Bit like the chimps I saw squabbling on 'Planet Earth' proigramme last night.