The Verdict
Average Success Rate
First Direct 0-Year Avg The following dataset includes the performances of ready-made portfolios/funds offered by investment platforms and may include both actively and passively managed ready-made portfolios/funds. Performance indicated is also net of all fees to 31st January 2024, unless stated otherwise; any tiered fee structure will be disclosed. Ready-made portfolios/funds that include cryptocurrencies or any other securities outside cash and equities are not included in the dataset. The dataset only includes ready-made portfolios/funds which are explicitly advertised by their respective platforms as being for ‘beginners’, and which are exclusively offered by the platform itself. Funds which are managed by other providers and may be identically offered across multiple platforms were not included in this dataset. For example, the Vanguard UK All Share Acc. ETF was offered by Plum, but as it is not directly managed by Plum and customers could reasonably access it on multiple platforms, it was not included for the purposes of this research. Other discretely advertised securities or investments are not included.
Industry avg. The industry average is the median average of all fund/ready-made portfolio performance figures we collated from 23 investment providers. To see the full dataset, visit X page.
First Direct has been around since 1989. It was originally created by Midland Bank (one of the UK’s “big four” high-street banks at the time) and is now part of HSBC. It's primarily a digital bank but also offers telephone banking, and if you want face-to-face customer service, you're allowed to use any HSBC branch.
There is a no-frills element to First Direct which I really like. It's a bank that focuses on getting the important things right and they do it well. There's a current account that offers fee-free debit card spending and withdrawals abroad, and a great mobile app and web platform that I've never encountered a single issue with in over a year's use. It also has really good, reliable customer service, which customers are unusually gushing about on various review sites, referring it to as "second to none" and "exemplary". Again, my own experience is that it's been faultless.
But as it's a no-frills kind of service, you won't get all the bells and whistles that you might find with a bank like Monzo, or Revolut, for example. By which I mean, no automated round-ups, or savings pots, or insights into your spending, and some functions are a little clunky and slower than you might be used to on other 'smarter' banking apps.
It does well on the variety of different savings accounts offered. You'll need to be a current account customer to access them however. Interest on the
A Cash ISA (Individual Savings Account) is a tax-free savings account where you earn interest without having to pay tax on it, allowing you to grow your savings more efficiently. Cash ISA
isn't great (currently 2.75% AER), but interest on the regular savings account is a much more impressive 7.00% AER fixed for 12 months.
If you have a First Direct current account, you'll also be able to open a
Sometimes called an investment ISA, a stocks and shares ISA is an individual savings account that allows you to invest in shares, unit trusts, investment funds, and bonds. You will not need to pay tax on any income or capital gains earned on investments within an ISAStocks and Shares ISA
, or a
General investment account (GIA) is an account designed to provide access to investments. You may be liable for tax on any income or capital gains earned within a general investment account but this can be a useful vehicle for anyone who has maxed out their ISA allowancegeneral investment account
. You'll be fairly limited in what you can invest in however, with just UK stocks, UK government bonds (gilts) and a small range of
Exchange traded funds (ETFs) are traded in much the same way as stocks. Instead of an individual stock, however, you own a basket of different assets which track the performance of a particular index or market. ETFs
on the menu. Again, this is a no-frills kind of investment service, best suited to those who just want to put some money away for long-term growth without too much fuss. It is not a trading platform, so there's no short-selling and none of the advanced features day traders will be looking for.
Something to keep your eye on, if you're considering First Direct, they often lead the way with switching incentives. Check out our
Best Bank Switch Offers page for current promotions.
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Reasons to use
- No-fees for using debit card abroad
- Regular savings account pays 7.00% AER fixed for 12 months
- Exemplary customer service record
- Demo investing account available
- Regularly offers high-paying incentives to switch current accounts to First Direct
- Flat fees for investing are good value for large portfolios
- Can use HSBC physical branches
- Cash ISA, various savings accounts, current account and Stocks and Shares ISA available
Reasons to avoid
- Trading fees are expensive
- Flat fees for holding an investment account are high for small portfolios
- App is relatively basic but does the basics well
- Regular saver requires you to save between min £25 and max £300 a month
- Investment options are limited to UK stocks, bonds and some ETFs
- Cash ISA only pays 2.75% AER
Fees
No fees to open a current account or savings account.
To invest, you'll need to pay a flat fee of £10.50 per calendar quarter. Online trading fees (to buy or sell assets) are an additional £10.50 per trade for the first 9 trades each calendar quarter, then £7.95 per trade after that. That's at the top end of the scale for trading fees.
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Reasons to use
- No fees for current accounts and savings accounts
- £10.50 per quarter to hold an investment account
- Flat fees are great value for those investing large sums
Reasons to avoid
- Trading fees are pricey
- Flat annual fees can be relatively expensive for small-scale investors
Account Opening
It took me just 5 minutes to open an account. It was a fully digital process, very straightforward, and I received my card within a couple of days. As I was eligible for a switching bonus, it was paid promptly and the whole process was smooth and painless.
Reasons to use
- Fully digital account onboarding
- Switching is easy - and First Direct offers a switching bonus of £175 (terms and conditions apply)
Research
First Direct helps with research into investment options by offering an online Research Centre where you can find a useful amount of market and company analysis. There are news feeds and charts showing past stock prices and past fund performance.
To help with trade execution, you can set up price alerts and email notifications when a share price meets your criteria. Helpfully, and unusually, you can also build a virtual portfolio (up to five portfolios, each holding up to 50 stocks) in a simulation environment to test out your strategies without using real money.
Reasons to use
- Fund and stock screener
- Demo portfolio (virtual money practice account) available
- Charts showing past performance over different time periods
- Live news feed
Reasons to avoid
- No lists of current 'top funds' or most bought for that month
- Does not offer stop loss trading
Safety
First Direct is a trading name of HSBC UK Bank plc, which is regulated by the Financial Conduct Authority and the Prudential Regulation Authority.
Your eligible deposits with First Direct are covered by the Financial Services Compensation Scheme (FSCS) up to £85,000 per individual per banking licence-holder (or higher in some specific temporary situations) in case the bank fails.
First Direct uses features like encryption, two-factor authentication, and Secure Key devices to protect customer money and data.
Reasons to use
- Authorised and regulated by the FCA
- Covered by Financial Services Compensation Scheme
- Encryption, biometric authentication, two-factor authentication and Secure Key devices used
Customer Service
It's highly unusual to find a bank with an "excellent" service rating on Trustpilot, but First Direct achieves it with flying colours. Reviewers are overwhelmingly positive about First Direct's customer service.
"I've used First Direct for decades now, from when it was a leader in telephone banking. They have stayed really good at that aspect of their service, whilst embracing all the online changes very successfully. I like that I can do almost everything really easily online, but that there's a speedy, friendly, helpful, and above all, human responder if I phone." [Recent Trustpilot review]
"My wife and I have banked with First Direct since a few months after they opened over 30 years ago. Never let us down. There was one time we got into financial difficulties for a few months and they were compassionate and understanding. We've always had first class advice and help whenever needed no matter how trivial the matter. We cannot recommend them highly enough"
[Recent Trustpilot review]
Reasons to use
- UK-based telephone support
- Phone line is open 24 hours a day, 7 days a week, 365 days a year
- In-app chat
- Message through online banking
- Can use HSBC branches for in-person queries
Corporate Actions
First Direct will advise you by post that a corporate action requires your attention and ask you to instruct them by the relevant deadline if you wish to have a say and exercise your rights.
Your instructions can be relayed through an online form. (Select 'products & services', click on 'corporate actions' then select the appropriate form.)
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Fact Checked 
Best for UK investors 
FCA approved 
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First Direct 0-Year Avg 
Industry avg. 
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Verdict 
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Corporate Actions 
