First Direct to scrap £10/month current account fee
First Direct is getting rid of the £10/month fee on its popular 1st Account current account next month.
At the moment, the bank charges a £10/mth fee on the account after you've had it for six months, though you can avoid paying this by doing at least one of the following:
- Paying in at least £1,000/mth (equivalent to an annual salary of £12,500).
- Holding an average monthly balance of £1,000.
- Having a savings, mortgage, credit card, loan or home insurance account with First Direct.
From 14 September 2019, this monthly fee will be scrapped altogether, for new and existing customers.
First Direct says in practice most customers don't pay the fee at the moment – but getting rid of it means those who don't meet the criteria, for instance because they earn less than £12,500/year, will be able to use the account for free.
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As well as scrapping the £10/mth fee, First Direct is reducing or getting rid of other charges associated with its accounts from 14 September:
- Fees currently charged when customers ask for more than one paper statement per month, or extra copies of their statement, will be scrapped. At the moment, you'll pay between £1 for an additional statement and £20 for a daily statement.
- The fee for sending money via Clearing House Automated Payment System (CHAPS) will be reduced from £25 to £17.
It's also changing the rules around its cash ISAs from 17 November, meaning you'll only be able to send money from your First Direct ISA to your First Direct current account, or to a UK account in your name with another bank.
You won't be able to send money from your ISA in a foreign currency, or to an account outside the UK.