First Direct Regular Saver review: earn 7% interest

The First Direct Regular saver is one of the best paying accounts right now

First Direct offers its current account customers a regular savings account that pays a table-topping rate of 7% on up to £300 per month — here’s everything you need to know about it. 

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How does it work?

Regular savings accounts are designed for building up savings regularly and getting into a savings habit, so you can’t throw a lump sum of money into one and earn the full interest on the lot. Instead, you make a regular deposit into a savings account by standing order, and in return, First Direct will give you 7% back. 

This is the norm for regular savings accounts, but we have a full guide explaining them and a list of the best buy tables too. 

With this regular saver, you can save between £25 and £300 per month, which is taken by standing order. At the end of the 12 month term, the interest is paid to you. 

How much can you save with the First Direct regular saver?

You can save up to £3,600 per year with the First Direct regular saver. This is based on saving £300 per month for 12 months. If you choose to only save £25 per month, you’ll save a total of £300 over the term.

How much interest can you earn?

Who can get it?

Only First Direct 1st Account customers can get the regular saver. We have a full review of the account, and there are often bank switching deals for First Direct, which could get you a nice sum just for switching over.

You can apply via the app and using online banking. 

Can you only have one account open?

Yes — you can only open one regular saver at a time with First Direct. This is even if you’re not saving the maximum amount. You also can’t make more than one payment into your regular saver account. 

There’s nothing stopping you from opening another regular saver with another bank, though. 

Can I make withdrawals from my First Direct Regular Saver?

No, you can’t withdraw any of your money early. You can withdraw it, including the interest earned, after 12 months. If you want your cash before this, you have to close the account, and you won’t get the full 7% on your savings. Instead, you’ll get the standard savings account variable rate, which is a lot lower — 2% AER variable at the time of writing. 

Alternative savings accounts

First Direct has the best regular saver available at the moment. Co-operative Bank has a 7% regular saver as well, but that rate is variable so could change during the year. And you can only save £250 per month, so you can’t earn quite as much interest. 

If you’ve got a lump sum you can earn more elsewhere, even if the rate is lower. Santander’s Edge Saver (which requires an Edge current account) pays 7% on up to £4,000, but it has a £3 monthly fee.

For larger sums, you might instead want a fixed rate offer or an easy access account. They may pay more even if the rate is lower. You could also drip feed from an easy access account to the regular saver to max your returns.

Should you open a regular saver with First Direct?

This is an excellent regular saver. It’ll get you into a good habit of saving money regularly and keeping it saved and it pays a great interest rate of 7%, which is the best that you can get at the moment.

However, since you need a 1st current account with the bank to get this, you will be subject to a credit check. That might not be a massive issue, but it’s worth bearing in mind.

Plus First Direct often runs decent bank switching deals which normally aren’t available to existing customers. So you might want to wait for one of those to be available before opening an account. Though, you’d run the risk of the regular saver being dropped before then. 

How to open a First Direct regular saver

To open your regular saver with First Direct, you need a First Direct 1st Account, which you can sign up for here. 

Once you have an account, you can either apply through the app or via online banking. It’s found under “products”.

You’ll be asked a few details to get it open, and your first payment will be taken. Then, a standing order will be set up to take your regular payments every month on the same day. 

You can’t change the payment date, so it’s best to set up the regular saver on a date that will work for you every month. If you want to pay a different amount in a month, you have to change the standing order amount, which you have to contact First Direct to do. 

Customer reviews

Over on our sister site Smart Money People, customers have rated the First Direct regular saver 4.88/5. Customers feel that the interest rate is fantastic versus others on the market and feel that it was really easy to set up. 

Some customers feel it’d be better if you could save more each month — though even these customers still rated it five stars.