First Direct

First Direct has scrapped all fees for overseas spending and cash withdrawals on its debit card for both new and existing customers, MoneySavingExpert.com can reveal. 

First Direct is now accepting new applications for its current account, after temporarily pausing them on Friday 16 December. It had initially told MoneySavingExpert.com it had made the move in order to maintain its customer service standards and let staff catch up and have a break over the Christmas period, but has now decided it has the resources to process applications as normal. 

First Direct is doubling the interest rate on its regular savings account from 3.5% to 7% on Thursday 1 December. It's the highest rate we've seen on this type of account since 2012. But there are a few catches – here's what you need to know.

More and more 10-year fixed mortgage deals are coming to the market, with First Direct becoming the latest to launch a product. Fixing for a decade can be done for as little as 3.33% right now and is becoming more appealing as the Bank of England base rate continues to rise. But there are pros and cons to doing so – here's what to watch out for.

Thousands of First Direct customers have had bogus payments taken from their accounts from scammers posing as the Nando's restaurant chain. Some customers claimed that fraudsters had taken unauthorised payments of around £60, although the online bank said the average transaction was £30.

HSBC, First Direct, M&S Bank and John Lewis Finance are making a second set of payments to some customers who have been in arrears in recent years. Having previously paid some customers compensation for substandard service, they're now issuing refunds – in one case paying out over £7,000 – for interest and charges that shouldn't have been due. So if you get a cheque out of the blue, DON'T bin it thinking it's a scam or spam.

M&S Bank customers whose current accounts are being closed this summer can now apply for the top cash switching incentives from its sister banks HSBC and First Direct no matter how long they’ve had their account.

HSBC and First Direct have cut the interest paid on their regular savings accounts from 2.75% to 1% for new customers, just days after MoneySavingExpert.com warned a rate reduction was on the cards. 

M&S Bank is soon to close its 2.75% AER regular savings account to new customers – and it's possible its sister banks HSBC and First Direct could follow suit. Yet if you have a current account with one of these banks already, there's still time to open a regular saver and lock in the 2.75% rate for a year.

Challenger bank Monzo has taken the crown in our latest banking customer service poll – knocking First Direct off the top spot for only the second time ever.