Great news for savings accounts as first direct is latest bank to increase interest rates
First direct is increasing the interest rates across its savings accounts including its one-year fixed rate product and cash ISA.
The new savings rates mean customers can now get up to 2.25 percent interest on its fixed rate ISA and 1.65 percent on up to £25,000 through its Fixed Bonus Account. Customers can also earn earn 3.50 percent interest by saving between £25 and £300 a month with first direct’s Regular Saver Account.
First direct is the latest bank to up interest rates following the Bank of England base rate increase in September.
The bank has increased savings rates across its range of products which should benefit those who are looking to get more from their savings.
In addition, customers can also make the most of the £175 in cash to all new customers switching to a 1st Account with the bank.
The cash bonus is available to all new customers who switch their full banking to first direct using the Current Account Switch Service (CASS) and pay in at least £1,000 within three months of opening the account.
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First direct increased the interest rate on its Regular Saver to 3.5 percent earlier this year.
It's not the only bank to increase interest rates for savers in recent weeks.
Britons can now earn five percent on their savings for the first time in over a decade.
Meanwhile, Barclays customers can get 5.12 percent interest on savings up to £5,000 and access their money when they need to.
Aldermore now also offers an interest rate of between 4.35 and 4.60 percent depending on whether customers can commit to a one-year or five-year fixed term.
Some experts believe savings rates could soon top six percent as the Bank of England accelerates interest rate hikes to battle inflation and save the pound.
Responding to a question from a viewer, he said doing nothing with savings right now is “a financial sin”.