First Direct has built a reputation for exceptional customer service since 1989. But in an age of flashy app-based banks, does this telephone banking pioneer still deserve your attention?
First Direct at a Glance
| Feature | Rating |
|---|---|
| Customer service | ★★★★★ |
| Online banking | ★★★★☆ |
| Mobile app | ★★★★☆ |
| Interest rates | ★★★☆☆ |
| Overdraft rates | ★★★☆☆ |
| Switching bonus | ★★★★★ |
| Overall | ★★★★☆ |
1st Account (Current Account)
| Feature | Details |
|---|---|
| Monthly fee | £0 |
| In-credit interest | 0% |
| Arranged overdraft | 39.9% EAR variable |
| Interest-free overdraft | £250 for qualifying customers |
| UK ATM withdrawals | Free |
| Foreign spending | Fees apply |
| Contactless limit | £100 |
What Makes First Direct Different
Award-Winning Customer Service
First Direct’s biggest selling point is their customer service:
- 24/7 UK-based call centres — speak to a real person anytime
- No phone menus — you’re connected directly to staff
- Consistently rated #1 — topped Which? satisfaction surveys for years
- Average call answer time — typically under 20 seconds
The Switching Bonus
First Direct offers one of the most generous switching bonuses on the market:
| Requirement | Details |
|---|---|
| Switching service | Must use CASS (Current Account Switch Service) |
| Minimum deposits | Usually £1,000+ within 3 months |
| Regular payments | 2+ direct debits/standing orders |
| Bonus amount | Typically £175 |
| Payment timing | Within 28 days of meeting criteria |
Linked Regular Saver
The Regular Saver account offers competitive rates:
| Feature | Details |
|---|---|
| Interest rate | Up to 7% AER (variable) |
| Monthly limit | £25 - £300 |
| Term | 12 months |
| Eligibility | Must have 1st Account |
Mobile App & Online Banking
First Direct’s digital offering has improved significantly:
App Features
- Balance and transactions — real-time updates
- Instant transfers — Faster Payments supported
- Bill management — view and manage direct debits
- Card controls — freeze card, manage contactless
- Spending insights — basic categorisation
- Apple Pay/Google Pay — fully supported
What’s Missing Compared to App Banks
- No instant spending notifications (delayed by hours)
- Basic spending categorisation
- No savings “pots” or goal-setting
- No integrated budgeting tools
Overdraft
First Direct offers a tiered overdraft:
| Overdraft Type | Rate | Details |
|---|---|---|
| Interest-free buffer | £0 | Up to £250 (if eligible) |
| Arranged overdraft | 39.9% EAR | Subject to approval |
| Unarranged overdraft | 39.9% EAR | Same rate as arranged |
Note: There’s no unarranged overdraft fee structure — you’ll simply be charged the same interest rate, which is fairer than many banks.
International Use
First Direct isn’t ideal for foreign travel:
| Transaction Type | Fee |
|---|---|
| Card payments abroad | 2.75% |
| ATM withdrawals abroad | 2.75% + local fee |
| Exchange rate | Mastercard rate |
Tip: Consider a Starling or Monzo card for foreign spending.
Savings Accounts
| Account | Interest Rate | Access | Minimum |
|---|---|---|---|
| Regular Saver | Up to 7% AER | Limited | £25/month |
| Bonus Savings | Variable | Instant | £1 |
| Fixed Rate Saver | Varies | Fixed term | £2,000 |
| Cash ISA | Variable | Instant | £1 |
Who First Direct Is Best For
✅ Good for:
- People who value human customer service
- Those who prefer phone banking
- Anyone wanting a generous switching bonus
- Customers who want an interest-free overdraft buffer
- Those who rarely travel abroad
❌ Not ideal for:
- Tech-focused users wanting cutting-edge apps
- Frequent international travellers
- Those seeking high in-credit interest
- People who prefer branch banking
- Customers needing detailed budgeting tools
First Direct vs Competitors
| Feature | First Direct | Monzo | Starling | Chase |
|---|---|---|---|---|
| Customer service | ★★★★★ | ★★★★☆ | ★★★★☆ | ★★★★☆ |
| Mobile app | ★★★★☆ | ★★★★★ | ★★★★★ | ★★★★★ |
| Switching bonus | £175 | None | None | Variable |
| Foreign spending | 2.75% fee | Free | Free | Free |
| Overdraft rate | 39.9% | 39% | 15-35% | N/A |
| In-app budgeting | Basic | Excellent | Excellent | Good |
How to Open a First Direct Account
- Check eligibility — must be UK resident, 18+, with regular income
- Apply online — takes around 10 minutes
- Verify identity — upload ID and complete video verification
- Switch (optional) — use CASS for the switching bonus
- Receive card — typically within 5-7 working days
Our Verdict
First Direct remains an excellent choice for those who prioritise customer service above all else. While their app lags behind Monzo and Starling, the human touch, switching bonus, and reliable banking make it a solid main account option.
Best for: Customer service-focused customers who appreciate telephone banking and want a switching bonus.
Rating: 4/5