Savings: 3.5% interest rate offered by First Direct under competitive agreement | Personal finance | Finance

Saving money is a challenge when costs rise, but many people are still determined to plan ahead. Fortunately, savings rates on bank accounts are improving, after a long period of decline due to the pandemic.

With so many options out there, Brits will be looking for the one that will make their money work the most.

First direct offers an account that could inspire Britons to become savers again.

The provider’s regular savings account currently offers an interest rate of 3.50% – attractive in the current climate.

The rate is also fixed for 12 months, which means that savers are guaranteed to have this rate for the duration of the term.

READ MORE: Warning to Britons using cash in supermarkets

Existing customers will be able to apply by downloading or logging into the first direct application.

Alternatively, they could apply using their existing online banking services.

It should be noted that partial withdrawals with this account cannot be made. Instead, if Britons wish to withdraw cash, they will need to withdraw the full amount.

This means that the account is probably best suited for those who can leave the sum untouched for 12 months.

The account will mature and close on the first anniversary of the opening date, based on a 365 day year.

The final balance is then transferred to another first direct savings account, probably with a lower interest rate.

The first direct regular saver also benefits from FSCS protection.

This means that if the worst should happen, all money up to a value of £85,000 is protected.

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