First Direct Savings Account: 7% Regular Saver vs Competitors

If you’ve been scanning savings rates lately, you’ve probably noticed a flurry of new offers from big UK banks. One name that keeps popping up is first direct, with its headline-grabbing 7% Regular Saver.

First Direct Regular Saver Rate: 7.00% AER/gross (fixed 12 months) ·
First Direct Fixed Rate Savings: 3.80% AER/gross (up to 13 months) ·
Max Monthly Deposit (Regular Saver): £300 ·
Min Savings Opening Balance: £1

The attribute table below captures First Direct’s key savings account specifications.

Does first direct have a 7% savings account?

Yes—the First Direct Regular Saver pays a fixed 7.00% AER/gross for 12 months. That places it among the top regular saver rates available in the UK today. According to First Direct (official bank website), the rate is guaranteed for the full term.

How much can I put into a first direct savings account?

• Monthly deposit range: £25 to £300 (First Direct)
• No maximum balance cap, but the monthly cap effectively limits total savings over 12 months to £3,600 plus interest

The trade-off: the monthly deposit cap means you can’t use this account to stash a lump sum. It rewards disciplined monthly saving, not large single deposits.

Which bank is behind first direct?

• First Direct is a trading name of HSBC UK Bank plc (First Direct legal page)
• Deposits are FSCS protected up to £85,000 per individual under the HSBC UK licence

Why this matters: first direct customers get HSBC’s financial strength and regulatory oversight, plus the FSCS safety net, while enjoying a separate customer service brand.

The implication: disciplined monthly savers get the best return, but the clock starts ticking from day one.

What is the new 8% savings account for Nationwide?

Nationwide launched an 8% regular saver account in early 2026, according to multiple search queries and market commentary. However, official details remain unconfirmed. What is clear: Nationwide also offers a 6.5% savings product that competes directly with first direct and Santander.

Is Nationwide offering a 6.5% interest rate on its savings account?

• Nationwide’s Flex Regular Saver currently pays 6.5% AER for 12 months on deposits up to £250 per month (Nationwide official site)
• Rate applies only to FlexDirect current account holders
• First Direct’s 7% beats Nationwide’s 6.5% on headline rate, but Nationwide’s cap is lower (£250 vs £300)

The pattern: Nationwide’s 6.5% account is slightly weaker on rate but easier to access if you already bank with them. The rumoured 8% account would leapfrog first direct—but until confirmed, the 7% regular saver holds top spot among major high street banks.

What this means: if you need to dip into savings mid-term, none of these headline offers give you wiggle room.

What is the new Santander 5.2% account?

Santander’s top easy-access rate was 5.2% AER until May 2024, when it was cut to 4.2% (MoneyWeek (personal finance magazine)). However, the bank’s Edge Saver account now pays 6% AER up to £4,000, including a 2% bonus that lasts 12 months (YouTube – TOP SAVINGS channel (rate comparison)).

What is Santander’s highest interest savings account?

• Santander Edge Saver: 6% AER on balances up to £4,000 (requires Edge current account, £3 monthly fee)
• Santander Regular Saver: 5% AER (YouTube savings analysis)
• Santander Edge Saver beats first direct’s easy-access rate (which is under 3%) but carries a monthly fee

The trade-off: Santander’s Edge Saver looks generous at 6%, but the £3 monthly fee effectively eats into interest on smaller balances. For balances under £600, you’re losing more in fees than you earn in bonus interest.

Where can I get 7% interest on my savings in the UK?

• First Direct Regular Saver: 7.00% AER fixed for 12 months (£25–£300 monthly)
• Co-op Bank Regular Saver: also 7% AER, similar terms (Co-op Bank)
• Principalities: 7.5% but only for 6 months (YouTube – TOP SAVINGS channel)
• SmartSave one-year fixed: 5.18% AER with £10,000 minimum (MoneyWeek)

The implication: “7% savings” almost always means a regular saver with monthly caps and a 12-month term. If you need instant access or want to deposit a lump sum, you’ll be looking at rates closer to 4–5%.

The pattern: locking in now gives you a hedge against expected base rate cuts later in 2026.

Where can I get 5% interest on my savings account?

• Santander’s 5.2% easy-access account (now 4.2% after cut) – Cahoot (Santander) offers 5.2% but only up to £3,000 (MoneyWeek)
• Ulster Bank Loyalty Saver: 5.2% with minimum £5,000 deposit (MoneyWeek)
• Atom Bank one-year fixed: 5.15% AER from £50 (MoneyWeek)
• First Direct’s easy-access account pays well below 5% (variable, typically around 2–3%)

The pattern: 5% easy-access accounts are rare and often come with balance limits or minimum deposits. For UK savers who want instant access without gimmicks, Santander’s Cahoot and Ulster Bank’s loyalty saver are the closest, but first direct doesn’t compete in that tier.

Five products, one theme: each bank dangles a headline rate to lure you in, then applies restrictions—monthly caps, minimum balances, current account fees, or time limits. The real winner depends on your deposit pattern and how long you can lock your money away.

The table below compares the three main challengers side by side.

The implication: First Direct’s 7% wins on headline, but Santander’s 6% is more flexible if you have the lump sum up to £4,000. Nationwide’s 6.5% sits in the middle—solid but unspectacular. For disciplined monthly savers, first direct is the clear leader.

“Santander cut its top easy-access saver rate from 5.2% to 4.2% AER on 20 May 2024.”

MoneyWeek (personal finance magazine)

“First Direct and Co-op Bank both pay 7% AER for 12 months as of May 2026.”

YouTube – TOP SAVINGS channel (rate comparison)

“The SmartSave account offers the best one-year fixed deal at 5.18% AER with a minimum deposit of £10,000.”

MoneyWeek (personal finance magazine)

“Santander Edge Saver pays 6% AER on balances up to £4,000, including a 2% bonus for 12 months.”

YouTube savings analysis

For the disciplined monthly saver, first direct’s 7% Regular Saver delivers the highest return among big high street banks. But the real test comes after 12 months: the rate drops sharply, and you’ll need to decide whether to switch to another bonus account or accept a much lower base rate. The same applies to Santander’s 6% Edge Saver—the bonus is temporary, and the monthly fee saps smaller balances. For UK savers with a lump sum, Nationwide’s 6.5% regular saver or a fixed-term bond like Atom’s 5.15% may be more practical. The decision is clear: if you save up to £300 per month and can lock in for a year, first direct is unbeatable. For larger deposits or flexible access, look beyond the headline rate.

Frequently asked questions