First Direct built its reputation on telephone and digital banking long before it was the industry norm, and it's consistently rated highly for customer service among UK banks. Its savings range reflects that relationship-focused approach — some of its most competitive accounts, such as its regular saver, are reserved for people who already hold a First Direct current account, rather than being open to everyone.
If you're not already a First Direct customer, it's worth checking whether the specific account you want requires a current account relationship before assuming you can apply for it directly.
1. First Direct's savings account range
First Direct typically offers a mix of easy access accounts and a regular saver product, alongside fixed-term options depending on what's currently available. Its regular saver accounts are often reserved for existing current account customers and can carry a cap on the monthly amount you can pay in, in exchange for a notably strong rate on that portion of your savings — a common pattern among banks that want to reward and retain their core current account customers.
2. Do you need a First Direct current account first?
If a specific First Direct savings product is restricted to current account holders, you'll typically need to open a First Direct current account before you're eligible to apply for the linked savings account. This is worth weighing up: switching your everyday banking to access a savings account only makes sense if you're also happy with First Direct as your day-to-day bank, not just for the savings rate on offer.
3. Comparing First Direct against other high-street savings
If you'd rather not switch your current account just to access a savings product, plenty of other providers offer competitive savings accounts with no current account requirement, including HSBC (First Direct's parent group), Nationwide and TSB. Compare the live rates across these providers against First Direct's open-to-all accounts before deciding whether a current account switch is worthwhile.
4. Choosing between a regular saver and a lump-sum account
A regular saver rewards consistent monthly contributions up to a cap, and often pays one of the highest rates on the portion of savings within that limit — but it's not designed for depositing a large lump sum all at once. If you have a substantial sum to save rather than a monthly amount to build up, a fixed rate bond or a standard easy access account is usually better suited, since regular savers typically cap how much you can pay in each month.
5. Protection and tax
As with any UK-regulated bank, savings held with First Direct are protected under the FSCS up to £85,000 per person. Interest counts towards your Personal Savings Allowance in the usual way, so higher-rate taxpayers or those with larger balances should also compare a cash ISA equivalent, where interest is always tax-free.
6. Frequently asked questions
Do I need to bank with First Direct to open a savings account?
It depends on the specific product. Some First Direct savings accounts, particularly its regular saver, are typically reserved for existing current account customers, while other accounts may be open more broadly. Check the eligibility criteria for the specific account before applying.
Is First Direct part of a larger banking group?
Yes, First Direct operates as part of the HSBC group, though it runs its own separate current account and savings range with a distinct telephone and digital-first service model. Compare it against HSBC's own savings accounts if you want to see how the two ranges differ.
Is a regular saver a good way to build up savings from scratch?
Yes, regular savers are specifically designed to reward consistent monthly saving and often pay a strong rate on the capped balance, making them a good tool for building a savings habit, though they're not suited to depositing a large lump sum in one go.
What happens if I stop paying into a regular saver each month?
This depends on the specific terms, but missing a monthly payment can sometimes affect the rate or how the account operates going forward. Check the terms of the specific account before relying on it as your only savings vehicle.
7. Conclusion
First Direct's savings accounts, particularly its regular saver, can offer some of the strongest rates on the market for existing current account customers, but they're not always accessible without that relationship. If you'd rather not switch your everyday banking, compare open-to-all providers like Nationwide and TSB against First Direct's publicly available accounts.
