Part of our First Direct UK — Complete Guide 2026 hub.
First Direct’s 1st Account is one of the most competitive free current accounts in the UK — fee-free with £1,000+/month in payments, with a genuine £250 interest-free overdraft buffer and a track record of generous switching bonuses. Here’s every fee explained.
First Direct Fees at a Glance
| Charge | Amount |
|---|---|
| Monthly fee (with £1,000+/month pay-in) | Free |
| Monthly fee (below £1,000/month pay-in) | £10/month |
| Arranged overdraft rate | 39.9% EAR |
| Interest-free overdraft buffer | £250 |
| Foreign transaction fee | 2.99% |
| Overseas ATM fee | 2.99% + £1.50 per withdrawal |
| UK ATM fee | Free |
| Faster Payments | Free |
| Standing orders | Free |
| CHAPS (outgoing) | Fee applies — check current rate |
Always verify charges at firstdirect.com/current-account/fees-and-charges/ — fees can change.
Monthly Account Fee
The First Direct 1st Account charges £10/month only if your incoming credits fall below £1,000 in a given month. This threshold is easily met by most full-time and part-time workers whose salary is paid directly into the account.
If you’re unemployed, self-employed with irregular income, or use the account as a secondary current account, the £10/month fee may apply.
Fee exemption tip: Monthly credits count cumulatively — you don’t need a single £1,000 payment. Multiple smaller credits totalling £1,000 or more in the calendar month will waive the fee.
The £250 Interest-Free Overdraft
First Direct’s arranged overdraft includes a £250 interest-free buffer — meaning the first £250 of any agreed overdraft costs absolutely nothing. Interest at 39.9% EAR only begins on balances above £250.
| Bank | Interest-Free Overdraft Buffer |
|---|---|
| First Direct | £250 |
| Nationwide FlexAccount | £50 |
| Most high-street banks | £0 |
This is one of the best overdraft buffers from any mainstream UK bank. If you occasionally dip a small amount into the red, First Direct’s buffer means it won’t cost you anything.
Cost example: Using £500 arranged overdraft for 30 days — only £250 is charged interest. At 39.9% EAR, that costs approximately £8 rather than the £16 it would cost at a bank with no buffer.
Overdraft Rate Comparison
| Bank | Arranged Overdraft Rate (EAR) | Interest-Free Buffer |
|---|---|---|
| First Direct | 39.9% | £250 |
| NatWest | 39.49% | None |
| HSBC | 39.9% | None |
| Santander | ~39.9% | None |
| Barclays | 35.0% | None |
| Nationwide FlexAccount | 39.9% | £50 |
Foreign Transaction Fees
First Direct charges for non-sterling card use:
- 2.99% non-sterling transaction fee on all overseas card purchases
- 2.99% + £1.50 per withdrawal for overseas ATM use
The £1.50 fixed ATM fee is an extra charge most high-street banks don’t apply — making First Direct slightly more expensive at foreign ATMs than Lloyds, HSBC, or Santander. For regular overseas card use, a specialist travel account (Starling, Chase, Wise) will be cheaper.
Switching Bonus
First Direct periodically offers a cash switching bonus to new customers who switch via the Current Account Switch Service (CASS). Historically this has been £175. The offer is usually time-limited and subject to eligibility criteria.
Check the First Direct website for the current offer before switching — this bonus can more than cover the first year’s potential monthly fees even if you don’t always meet the pay-in threshold.
Payment Fees Summary
| Payment Type | Fee |
|---|---|
| Faster Payments (UK transfers) | Free |
| Standing orders | Free |
| Direct debits | Free |
| CHAPS (same-day guaranteed) | Fee applies |
| International wire transfer | Fee applies |