UK bank customers have received some welcome financial news this week as First Direct announced an increase in its fixed rate ISA to 4.40% AER. The move is designed to help savers maximise their tax-free cash savings during the current ISA season.
How Much Interest Can You Earn?
If customers deposit the full £20,000 annual ISA allowance, they will receive £880 in interest after 12 months. Interest is calculated daily and credited at the end of the fixed term. Customers also have the option to transfer existing ISA balances into the account.
Additional Switching Incentive
To be eligible for the ISA, customers must open a First Direct 1st Account. Those who do so before July 15 can earn an extra £200 as part of the bank's boosted switching incentive. New customers switching their current account to First Direct can also benefit from perks including a 7% interest Regular Saver account, fee-free overseas transactions and ATM withdrawals, a £250 interest-free overdraft, and 24/7 customer service.
Colin Harrison, head of banking and propositions at First Direct, said: “We are committed to supporting our customers save for their future, including when it comes to tax-free savings. On top of getting a competitive return of 4.40% on their ISA, customers can also access our 7% Regular Saver Account, which can help maximise interest returns even further.”
He added: “This is on top of all the perks we offer on our current account, including the award-winning customer service that First Direct is famous for, which is available 24 hours a day, 365 days a year.”
