Savings Interest Rates, Switch Offers and Guides for First Direct

Who they are

First Direct was founded on 1 October 1989 by Midland Bank as the UK's first telephone-only bank. Following HSBC's acquisition of Midland Bank in 1992, it became part of the HSBC group, and today it operates as a division of HSBC UK Bank plc. Headquartered in Leeds, it had around 1.9 million customers as of 2024, and has no branches of its own - everything runs through the app, online banking, or phone.

Customer service is central to what First Direct does - it won the UKCSI Best Customer Service Award for 2025, making it the best brand for customer satisfaction out of 267 companies across 13 sectors and industries. The key differentiator is simple: First Direct offers 24/7 UK telephone banking with actual humans. Most other banks have reduced or eliminated real phone banking; First Direct has maintained it deliberately as its primary service proposition.

One thing to be aware of on FSCS protection: the £120,000 FSCS limit applies to the total of any deposits you hold across HSBC UK, HSBC Private Bank, First Direct, M&S Bank, and M&S Savings and Investments. If you already save with HSBC, your balances across both brands count as one pot for protection purposes.

Savings accounts

First Direct's savings range covers most needs, though the headline act is the Regular Saver. At a fixed 7.00% AER on monthly deposits of £25 to £300, it is one of the stronger rates available - but it requires a First Direct current account and the money is locked away for 12 months with no access until maturity.

For easy access, the Bonus Savings Account pays 3.35% variable with just £1 to open. The standard Savings Account sits at a much lower 1.05% - worth noting if you end up parked there by default. On the fixed side, Fixed Rate Savings offers 4.30% (minimum £2,000, no access until maturity).

For ISA savers, the instant-access Cash ISA pays 2.75%, while the Fixed Rate Cash ISA steps up to 4.00% from a £500 minimum. There is also a Stocks and Shares ISA - note that FSCS protection works differently here: up to £85,000 on investments and up to £120,000 on any uninvested cash held within it.

All savings accounts carry FSCS protection up to £120,000, subject to the shared licence point above.

Switching to First Direct

The 1st Account comes with a £175 cash bonus for new customers who switch via the Current Account Switch Service. To qualify, you need to transfer at least two direct debits or standing orders, deposit £1,000, make five or more debit card payments, and log on to digital banking - all within 45 days of opening. There is no monthly fee. The offer is for new customers only, and you must not have previously held a First Direct product or opened an HSBC current account on or after 1 January 2018. There is no published deadline on the current offer, but the amount has moved before, so it is worth checking before you apply.

Is it right for you?

First Direct suits savers who want a solid, fee-free current account with genuine human support and a competitive regular saver bolted on. If you can commit £300 a month for a year, the 7.00% fixed Regular Saver is a genuine stand-out. The easy access rates outside the Bonus Savings Account are less compelling, and there is no cashback on spending, so if you are primarily chasing the highest easy access rate or a top-of-market cash ISA, you can likely do better elsewhere.

Rates move regularly - use the live figures shown on this page to make sure you are comparing what is current today.