First Direct

Who they are

First Direct was founded on 1 October 1989 by Midland Bank. On its launch, it was the UK's first telephone-only bank - a genuinely radical idea at the time, built around the insight that people shouldn't have to queue in a branch to manage their money. In June 1992, it became part of HSBC when HSBC acquired Midland Bank. Today it operates as a fully digital and telephone bank, with no branches of its own, headquartered in Leeds, with around 1.9 million customers as of 2024.

What First Direct is really known for, though, is customer service. It won the UKCSI Best Customer Service Award for 2025, making it not only the best bank for customer service but the best brand for customer satisfaction out of 267 companies across 13 different sectors and industries. The key differentiator is straightforward: First Direct offers 24/7 UK telephone banking with actual humans - something most challengers and many incumbent banks have reduced or eliminated, which First Direct has maintained deliberately as its primary service proposition.

Savings accounts

First Direct's savings range is focused rather than wide. The standout product is the Regular Saver Account, which pays a fixed rate of 7.00% AER on monthly deposits of between £25 and £300. The account runs for 12 months, the rate is fixed for the term, and access is instant - though in practice this works like a structured commitment: you drip-feed money in monthly rather than depositing a lump sum. If you save the maximum £300 every month, you'd accumulate £3,600 over the year. Because your average balance builds gradually, the actual interest earned is roughly £136 - still a strong return for a straightforward savings habit.

You do need a First Direct current account to access the Regular Saver, so it's a product for existing or incoming customers rather than a standalone option.

Deposits with First Direct are protected up to £120,000 under the FSCS - worth knowing. HSBC and First Direct share the same banking licence and therefore the same FSCS limit. First Direct, M&S Bank, M&S Savings and Investments, HSBC Private Bank and HSBC UK are all trading names of HSBC UK Bank plc, and customers who hold deposits with any of these trading names will only be eligible for one claim up to the FSCS deposit limit. If you already hold savings with HSBC UK, that matters for how much of your combined balance is protected.

Switching to First Direct

First Direct is currently offering a £200 cash bonus if you switch your main current account using the Current Account Switch Service. To qualify, you need to: switch using CASS (including moving at least two Direct Debits or standing orders); deposit £1,000 within 45 days; make five or more debit card payments; and log on to digital banking. The switch offer deadline is 15 July 2026 - check the live details on this page, as these terms can change.

The 1st Account itself has no monthly fee, provided you deposit at least £1,000 a month. New switchers also get access to the 7% AER fixed Regular Saver for up to £300 per month, which makes the overall package one of the more compelling switching offers currently on the market.

For travel, First Direct's debit card charges no foreign transaction fees and uses Mastercard exchange rates, making it a solid option for spending abroad without needing a separate travel card.

Is it right for you?

First Direct suits people who value knowing a real person will pick up the phone when something goes wrong. It's not the bank for someone chasing the absolute highest easy access rate or wanting cashback on everyday spending - for those things, you'd want to look elsewhere. But if you're a disciplined monthly saver and want a no-fee current account with a strong switch bonus and genuinely good service, it stacks up well.

The Regular Saver is the headline savings product here, and it rewards consistency rather than lump-sum deposits. Bear in mind the FSCS licence overlap with HSBC if you hold money across both.

As ever, rates and switch offer terms change - use the live figures on this page before you decide.