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Bonus Saving Account

At a glance
Key product info

A cash bonus - for doing nothing

Because dipping into your savings can be tempting, our Bonus Savings Account rewards you for establishing virtuous saving habits. Every month you don't make a withdrawal, we'll give you a bonus rate of 0.40%* AER/gross variable on balances up to £25,000. Don't worry - you can still get at your money if you need to, but for that month the interest will only be 0.10%** AER/gross. Knowing this should be just enough to curb the temptation...

From 17 June 2020, these rates will be reduced as follows:

*0.05% AER/gross **0.01% AER/gross

bonus rate applies for every calendar month you don't make a withdrawal
instant access if you need it by an internal transfer to your first direct Current Account
earn the higher interest rate on balances up to £25,000
start saving from £1, no maximum limit
sole accounts only and one account per person.

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Summary and key product information

Account information title

Account information details

Account Name

Bonus Savings Account

What is the interest rate?

Rates effective until 16 June 2020

Balance	Interest rate With Bonus	Interest rate Without Bonus
Under £25,000	0.40% AER/Gross	0.10% AER/Gross
£25,000+	0.20% AER/Gross	0.10% AER/Gross

Rates effective from 17 June 2020

Balance	Interest rate With Bonus	Interest rate Without Bonus
Under £25,000	0.05% AER/Gross	0.01% AER/Gross
£25,000+	0.02% AER/Gross	0.01% AER/Gross

Interest is calculated daily and credited monthly.

Bonus interest is not paid in any calendar month where a withdrawal is made or the account is closed.

Bonus interest is paid in any month where a withdrawl is not made or the account not closed.

Balances up to £25,000 will earn the higher rate of interest. Only the part of the balance above £25,000 will earn the lower rate of interest.

Can first direct change the interest rate?

Yes, we can change the interest rate on this account in line with the account's Terms and Conditions.

What would the estimated balance be after 12 months based on a range of deposits?

Until 16 June 2020, the estimated balance after 12 months would be as follows:

Initial deposit	Rate	Interest rate	Balance at end of 12 months
£1,000	With bonus	0.40% AER (0.40% Gross)	£1,004
£35,000	With bonus	0.40% AER (0.40% Gross) on first £25,000 then 0.20% AER (0.20% Gross) on any balance above £25,000.	£35,120
£1,000	Without bonus	0.10% AER (0.10% Gross)	£1,001
£35,000	Without bonus	0.10% AER (0.10% Gross) on the whole balance.	£35,035

After 17 June 2020, the estimated balance after 12 months would be as follows:

Rates effective from 17 June 2020

Initial deposit	Rate	Interest rate	Balance at end of 12 months
£1,000	With bonus	0.05% AER (0.05% Gross)	£1,000.50
£35,000	With bonus	0.05% AER (0.05% Gross) on first £25,000 then 0.02% AER (0.02% Gross) on any balance above £25,000.	£35,014.50
£1,000	Without bonus	0.01% AER (0.01% Gross)	£1,000.10
£35,000	Without bonus	0.01% AER (0.01% Gross) on the whole balance.	£35,003.50

For the purpose of these calculations it is assumed:-

initial deposit of £1,000 and £35,000
no additional deposits
the interest rate remains the same during the 12 months
the with bonus calculation assumes no withdrawals are made in any of the 12 months
the without bonus calculation assumes a withdrawal is made in each of the 12 months.

Projection provided for illustrative purposes only and does not take into account individual circumstances.

How do I open & manage my account?

Eligibility:

you must hold a first direct 1st Account, our current account
this account can only be opened in sole names
only one account per person permitted.

How to open the account:

Apply by phone.

Minimum/Maximum Balance:

a minimum of £1 must be deposited to open the account
there is no maximum balance.

How to manage the account:

once opened you can manage your account via Online Banking, by phone or by post.

Can I withdraw money?

You have instant access to your account. You can make as many withdrawals as you like however, remember that for any month you do make a withdrawal you will receive a lower rate of interest (currently 0.10% AER/Gross).

Additional Information

A 14 day cancellation period applies to this account.
We do not deduct tax from any interest paid to you.
Tax benefits depend on individual circumstances and could change in the future.

Definitions

AER stands for Annual Equivalent Rate. This shows you what the gross rate would be if interest were paid and compounded each year.
Gross is the rate of interest if interest were paid and not compounded each year.

Information correct at 6 April 2020

How to open a Bonus Savings Account

Existing Customers

Please call us on:

Telephone: 03 456 100 100

New to first direct

This product is only available to first direct Current Account customers.

To enable us to focus on supporting our existing customers and their immediate financial needs, we have taken the decision to withdraw first direct current accounts to new customers.

We hope this will only be a temporary measure so please keep checking back here for updates.

Before you apply

Before applying, please have a read through the following.

first direct Account Terms and Conditions (PDF, 111KB)
Charges and Additional Product Terms (PDF, 57KB)
Privacy Notice (PDF, 63KB)
Give me the facts (PDF, 47KB)
Interest Rate and Charges (PDF, 64KB) (For 1st Account charges refer to Charges and Additional Product Terms)
UK FSCS Information Sheet and Exclusions List (PDF, 44KB)

Important notes

Protecting your money. Deposits protected by the Financial Services Compensation Scheme.

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