The Regular Saver Account is available to customers with a first direct Current Account, which people can apply for online or via the app. The 3.5 percent fixed rate applies for 12 months, with savers required to deposit between £25 and 300 a month, totalling up to £3,600 a year.
Customers are invited to get into a “good savings habit” by putting funds aside in the account, so that “the future you will say thanks”.
If an individual’s regular payments are less than £300, the allowance can carry over and more can be paid in later months.
Payments must be made by standing order each month, and customers can change the amount of the standing order at any time.
However, the scheme does not allow partial withdrawals – if the account is closed before the end of the 12 months, the interest will only be paid at the standard Savings Account variable rate.
Once the account has been opened, it can be viewed through the app.
The interest will be calculated daily and will be paid 12 months after the account is opened.
At the end of the 12-month term, the balance of the account along with the interest earned will be transferred into a customer’s Savings Account or Everyday e-Saver.
If an individual has both of these accounts, the money will go into the fund that pays the highest rate of interest.
To create a Current Account and access the Regular Saver, an applicant must be 18 and a UK resident.
New users can get £150 if they are switching their funds from another bank, or a £20 cash offer for simply investing with the group.
First direct recently increased the rates on several of its savings accounts to help customers hit by the cost of living crisis.
The new Regular Saver rate is 2.5 percent more than the previous rate of one percent.
Other savings products that have had their interest rates increased include the bank’s Cash ISA, Bonus Saving Account and Fixed Rate Saver.
All of these accounts are available to new and old customers.
Rates are variable on all of the institution’s products, apart from for the Regular Saver, as well as for the Personal Loan and Fixed Rate Savings offerings.
First direct is a division of the HSBC group.