first direct

first direct is a branch-free bank that does everything by app, online and telephone. It is best known for its 1st Account current account, and around that it sells savings accounts, mortgages, credit cards and investing¹. Its savings accounts are open only to people who hold the 1st Account, its current account². On mortgages it offers 2 types of mortgage and 3 types of mortgage rate³. Day-to-day banking runs through its app, Online Banking on any browser, and its UK telephone banking service, with some in-person services available through HSBC branches and the Post Office⁴.

first direct is a bank without branches, offering current accounts, savings, mortgages, credit cards and insurance by phone, app and online. It sits inside the same banking group as HSBC UK and M&S Bank, which affects two practical things: where you can pay in cash and cheques, and how much of your money is protected by the UK's deposit guarantee scheme, because deposits across the group's brands count towards one shared limit⁵.

What first direct offers

first direct's product range is built around its current account. The 1st Account is the entry point: first direct states that you can open an account in its app or by calling, and the account comes with the app, Online Banking and access to its telephone banking service¹. A fuller guide to how current accounts work generally, including overdrafts and the Current Account Switch Service, is on our current accounts page.

Savings sit on top of the current account. The first direct Savings Account requires you to hold a 1st Account, and gives instant access to your money by transfer back into that account². Its Regular Saver is likewise available to 1st Account holders only¹. Because first direct's savings accounts are tied to its current account, they suit people who want their everyday banking and savings in one place. Our savings guide explains how instant-access and regular savings accounts compare, and our ISAs guide covers tax-free saving, which first direct customers can also hold with other providers.

On mortgages, first direct offers 2 types of mortgage and 3 types of mortgage rate³. Existing customers can switch to a new rate as their current deal ends, which is covered in its own section below. The mechanics of mortgages, from fixed rates to overpayments, are explained in our mortgages and home buying guides.

first direct customers can also hold credit cards, including balance transfer cards, and personal lending. Balance transfers work under the group's shared card rules, set out below, and the group's card products include the HSBC Balance Transfer card, HSBC Rewards, HSBC Premier, HSBC Premier World Elite Mastercard and HSBC Purchase Plus. Personal instalment lending is available through HSBC Flexipay. General guides to credit cards, loans and investing explain how each product type works and what to compare.

Who can apply and how eligibility is assessed

To open a 1st Account, first direct asks for the usual identity and address checks, and it states that one thing you need is an email address⁵. You can apply in minutes on the app or online, and if approved you get a virtual card and access to Online Banking straight away¹⁰.

Some offers are closed to existing customers. As an example of how these rules work, the HSBC UK current account switching offer is unavailable to anyone who is an existing HSBC UK or first direct customer, or who has opened an HSBC UK or first direct current account on or after 1 January 2023¹¹. first direct's own savings accounts are restricted to 1st Account holders, so the current account is the gateway to the rest of the range².

Eligibility for credit products is assessed separately. When you apply for a card, loan or mortgage, the lender checks your credit record and circumstances, and being a first direct customer does not guarantee acceptance. Our credit scores guide explains what lenders look at and how to check your own record.

Balance transfers stay outside the HSBC group

A balance transfer moves a debt from one credit card to another, usually to take advantage of an interest-free period. The group's rules state that balance transfers exclude other HSBC Group cards, which means you cannot transfer a balance from HSBC UK, first direct or M&S Bank cards⁸.

If you transfer a balance from another bank's card, the mechanics work like this. You can request a transfer on the latest mobile app, through Online Banking or by calling the contact centre on 03457 404 404, with lines open every day from 08:00 to 20:00. If the request is approved, the payment should reach the other card provider by the end of the next working day, though it will not show in your account until the next working day. Requests received after 15.30, or on a non-working day, are treated as received on the next working day⁸.

Two rules catch people out. First, you lose the up-to-56-days interest-free period on new purchases until the transferred balance is fully repaid, so interest is charged on new purchases at the standard variable rate. Second, you lose the promotional rate and interest is charged at the standard rate if you are late making at least your minimum payment in any month. When the promotional period ends, any transferred balance still on the account is charged at the standard variable rate. Payments you make go towards balances charged at higher rates of interest first⁸.

The length of interest-free periods on balance transfer cards is set by each provider for its own offers, so check the provider's current terms before applying. The Bank of England's Credit Conditions Survey for 2026 Q1 reported that the length of interest-free periods on credit cards for balance transfers had increased in Q1 and was expected to increase further in Q2¹². A repayment calculator helps you see what you need to pay each month to clear a balance before the interest-free period ends¹³.

Switching your mortgage rate as an existing customer

If you have a first direct mortgage and your current rate is coming to an end, first direct lets you choose your new rate up to 90 days before the current one expires. The process is: choose your new rate using its calculator, call to book the rate, and first direct moves you onto the new rate when your current rate ends. The rates are offered just for existing mortgage customers, with no credit search, statements or payslips required, and you have access to free advice from a first direct mortgage adviser¹⁴.

Existing customers have other options too. You can extend the term of your mortgage at any time, without waiting until the existing rate ends¹⁵. If your mortgage is affected by a Bank Rate change, first direct states it will always write to you to confirm your new interest rate and monthly payment¹⁵. If you have both a first direct mortgage and a 1st Account, you can change your standing order date at any time by calling 03 456 100 100, or notify first direct first if you pay from a different bank¹⁵.

first direct is covered by the Mortgage Charter, which names HSBC, including First Direct, among the firms that signed up to its support commitments for borrowers struggling with payments¹⁶. The equivalent HSBC process for existing customers also requires no eligibility or credit score check to switch rates, and asks for at least 7 working days' notice before a payment is due to change a payment date¹⁷. Our mortgages guide explains what happens when a fixed rate ends and what the options are.

Banking with first direct by app, online and phone

first direct has no branches of its own, so the app, Online Banking and the telephone are the bank. Its app is available to download on your smartphone or tablet, and you can log in to Online Banking on a desktop, tablet or mobile browser⁴. The quickest way to pay in a cheque is through the app using your phone's camera⁴. Cash and cheques can also be paid in at an HSBC UK branch with a counter, at a Multi-Bank ATM deposit machine, and at the Post Office⁴.

Opening an account can be done in the app or by phone⁵, and switching to first direct uses the standard Current Account Switch Service, with an application that takes minutes on the app or online¹⁰. Savings accounts can be opened by chat in Online Banking, through the app, or by phone². Our how to guide covers everyday tasks like setting up payments and managing your account.

Paying in cheques: how cheque imaging works

Cheques are cleared in the UK by the Image Clearing System, which allows banks and building societies to exchange images of cheques instead of moving paper around the country¹⁸. Cheque and credit clearing is used for processing cheques and other paper payments in England, Scotland and Wales¹⁹.

For first direct customers, the quickest route is the app: you photograph the cheque with your phone's camera⁴. You can also pay one in at an HSBC UK branch with a counter, at a Multi-Bank ATM deposit machine, or at the Post Office⁴.

The timings are much faster than they used to be. Before cheque imaging, a cheque would show as pending until cleared, which could take 2 to 6 days. With imaging, you can access your funds within 2 working days instead of 6: if you pay in a cheque on a weekday before the cut-off time, you can withdraw the funds by 23:59 on the next weekday, as long as the cheque has not bounced¹⁸.

There are rules worth knowing. You can no longer put a stop on a cheque once the scanned image has been received for payment. If there is not enough money in the payer's account at the start of the day, the bank may try to pay it again at 13.30. If the cheque does not clear by 23:59 on the next day, it has been returned unpaid, and you receive a copy of the image rather than the paper cheque. Returned cheques can be re-presented up to 4 times, but a paper cheque that is re-presented will be rejected as a duplicate¹⁸.

Keeping your account safe: what first direct will never ask you to do

The single most useful rule is this: no one from your bank, the police or any other official body will ever ask you to move money to a "safe" account²⁰. A bank will also never ask you to tell them your online banking password, authorise a payment, move money into another "safe" account, or carry out a "test transaction"²¹. Anyone who calls, texts or emails asking for any of these things is a fraudster, whatever story they use about refunds, investigations or suspicious payments.

first direct applies its own controls on certain payment types. Payments to cryptocurrency exchanges made through its digital banking services or by phone are limited to £2,500 for a single payment, with a total limit of £10,000 in any rolling 30-day period. The same limits apply to debit card payments to cryptocurrency exchanges: £2,500 for a single card payment and £10,000 in any rolling 30-day period. Payments received from cryptocurrency exchanges into your account are still allowed⁹.

If you think you have been scammed, the steps are to call your bank using the number on the back of your card, report the scam to Report Fraud, the national fraud reporting service, and contact the police on 101. Records of all contact and correspondence between you and the scammer can be kept, and payments to the person or company you think is scamming you can be stopped²¹. The Financial Ombudsman Service can later look at complaints involving unauthorised payments and identity theft if the bank does not resolve matters²². Our scams and fraud guide covers the main types of scam in detail.

Bereavement, power of attorney and help with someone else's account

When someone dies, first direct asks to be told as soon as possible. Once it has been notified, any sole accounts are frozen and all payments out are stopped, including direct debits and standing orders. Money paid in is also stopped, except for refunds or dividend credits. Joint accounts change into sole accounts in the name of the remaining account holder²⁴.

The person handling the estate, called the personal representative, needs to provide formal confirmation of the death, such as an original or certified copy of the death certificate or the Coroner's Certificate, together with a fully completed Closure Form for sole accounts. If the personal representative does not already bank with first direct, they also need one form of identification and one proof of address. A death can also be notified in person at a local HSBC branch, which liaises with first direct's Bereavement Support Team²⁴.

The Financial Services Compensation Scheme has its own process for personal representatives claiming on a deceased person's accounts, and the representative needs to first check eligibility on the scheme's "check if you can claim" page before starting a claim²⁵. first direct's support article also points to the mylostaccount website, which can help track down a complete list of organisations that have accounts in the deceased's name²⁴. Wider help with money after a bereavement is covered in our life events guide.

Inactive and dormant accounts: when money is frozen and how to reclaim it

first direct treats an account as dormant or inactive if it has not been used for an extended amount of time, typically 2 years. To protect the money, it may freeze inactive accounts that hold a credit balance, which prevents unauthorised transactions. If you have other accounts with first direct that are still in use, those will not be frozen or closed²⁶.

Freezing is not the same as losing the money. Money in an inactive account is still yours and you are entitled to claim it at any time²⁷. Reactivating a frozen account can involve having your identity verified, which in one Financial Ombudsman case study meant the customer needed to go into a branch²⁸. If an account is genuinely lost, or stays dormant, first direct will move the money into the government's Dormant Assets Scheme after 15 years. Even then, the money remains yours and can still be claimed²⁶.

To find an old account you have lost track of, you can use the free My Lost Account service, which traces forgotten and lost bank accounts across many providers²⁷. Our getting started guide has more on keeping track of your money.

Complaints record and how first direct compares with HSBC UK

The group publishes complaints data for each half year, with first direct reported separately from HSBC UK even though both are brands of the same banking group, whose brands include HSBC UK, first direct and Marks & Spencer Financial Services²⁹.

In 2026 H1, first direct received 6,076 complaints in Banking & Credit Cards and closed 6,123. That works out at 1.47 complaints per 1,000 accounts in Banking & Credit Cards, 3.06 per 1,000 accounts or loans for credit-related products, 3.83 per 1,000 client accounts for investments, and 3.54 per 1,000 balances outstanding for home finance. HSBC UK, by comparison, received 73,367 Banking & Credit Cards complaints, or 8.23 per 1,000 accounts, with 4.09 per 1,000 accounts or loans for credit-related products and 1.01 per 1,000 client accounts for investments²⁹.

The published data also covers how quickly complaints were closed and how many were upheld. For those measures, the group's own published tables are the place to check the current figures²⁹.

If you need to complain to first direct, raise it with the bank first. If it cannot resolve the matter, or eight weeks pass without a resolution, you can take the complaint to the Financial Ombudsman Service, which is free. Our consumer protection guide explains the complaints process step by step.

How your money is protected as part of HSBC UK

first direct is part of the HSBC UK banking group, and the bank behind it is authorised by the Financial Conduct Authority and appears on the Bank of England's list of UK banks authorised to accept deposits⁶.

Eligible deposits are protected up to a total of £120,000, or up to £240,000 for joint accounts, by the Financial Services Compensation Scheme, the UK's deposit guarantee scheme⁵. The limit is shared across the group's banking brands: money in HSBC UK, HSBC Private Bank, first direct, M&S Bank and M&S Savings and Investments accounts counts together towards the single £120,000 limit⁵.

This sharing matters in practice. If you hold, say, £70,000 with first direct and £70,000 with HSBC UK, only £120,000 of the £140,000 total is protected, because the FSCS applies one limit to the combined deposits across these brands. Someone with the same split across two unrelated banks would have both amounts covered in full. The FSCS also has a dedicated process for personal representatives claiming on behalf of someone who has died²⁵. More on deposit protection, and on the FSCS's temporary high balances rules, is in our consumer protection guide.