First Direct customers getting better deals than HSBC ones

First Direct is the Internet banking arm of the High Street bank First Direct, and as such consumers would assume that customers of both would receive similar deals and rates. However, according to a recent report customers of First Direct are getting better deals than customers of HSBC even though they are effectively with the same bank.

Officials have said that HSBC seems to favour First Direct customers, who generally tend to be better off than HSBC customers in terms of their finances. For example, HSBC will not be passing on any of the recent 0.5% base rate cut to customers, but First Direct customers will benefit from the cut.

One industry official stated: ‘First Direct is clearly targeting better-off customers and, in turn, they are getting a better deal than those at HSBC. Customers at HSBC must be wondering why those at First Direct are getting preferential treatment.’

A couple of years ago over 200,000 customers left First Direct after it announced plans to charge monthly fees on accounts where at least £1500 a month was not being paid in. This resulted in many lower income customers leaving the bank and left those with higher incomes staying on with First Direct.