Halifax to relaunch regular saver @10%+

cmac · 18 June 2008 at 5:07PM

This is great guys
thank you for your help i`m great at reclaiming money via this site BUT saving is another matter
cmac x

cmac · 18 June 2008 at 5:13PM

sloughflint wrote: »

I've just thought about her A&L account. Is she using it as a proper account rather than a dumping ground for £ 2.5k?
Sorry for clogging an already long thread.
We can always delete our posts, eh cmac?

no shes not using it at all it was to get their ISA last year and shes not done anything with it
yes I ll happly delete as well - not done that yet either but willing to have a go

sloughflint · 18 June 2008 at 5:27PM

cmac wrote: »

no shes not using it at all it was to get their ISA last year and shes not done anything with it
yes I ll happly delete as well - not done that yet either but willing to have a go

It's already a long thread. Unless I get loud objections, I'll leave my input in case it gives people ideas.
Thinking about it,
8.5% is better than 6.5% so maybe simpler for her to drip feed each month from BM into A&L for the 12 months.
So:
5k immediately in halifax guaranteed saver reward 6.25%
2.5k immediately in her A&L 8.5% account
3.5k immediately in a BM 6.5% account
Set up SO out of A&L to RS for £500 each month
SO or manual payment out of BM ( can't remember if it has to be manual) £500 each month to A&L to bring back the A&L balance back up to £2500 and also satisfy the funding requirements.
Sorted ?
EDIT:
Each month, the A&L account will receive interest taking it over the £2.5k mark. Rather than send that back to BM and lose a few days interest, you could open an A&L esaver @6.5% with £1( http://www.alliance-leicester.co.uk/savings/esaver.aspx) and shift the interest into it. There are withdrawal penalties but if you use it purely for shifting the interest and leave the account alone and close it in a year,( July) you should be fine.

You did say you didn't mind a little hassle to make your Mum's money work for her.lol.
Don't forget all the R85 forms for each account.

cmac · 18 June 2008 at 5:32PM

sloughflint wrote: »

It's already a long thread. Unless I get loud objections, I'll leave my input in case it gives people ideas.
Thinking about it,
8.5% is better than 6.5% so maybe simpler to drip feed each month from BM into A&L for the 12 months.
So:
5k in guaranteed saver
2.5k immediately in A&L
3.5k immediately in BM
SO out of A&L to RS £500 each month
SO or manual payment out of BM ( can't remember if it has to be manual) £500each month to A&L to bring back to £2500 and satisfy the funding requirements.
Sorted?

that sounds fantastic my only consern is I seem to remember that A+L is 8.5% only on 2500 for the year and sorry for being a bit dim but if she puts all the money in there over the year will she not lose out?

sloughflint · 18 June 2008 at 5:35PM

cmac wrote: »

that sounds fantastic my only consern is I seem to remember that A+L is 8.5% only on 2500 for the year and sorry for being a bit dim but if she puts all the money in there over the year will she not lose out?

No she wouldn't lose out.

Breaking down her 11k:
5k would be static and earning 6.25% for the whole year
The remaining 6k would be at various places in the year but always at a better place than the suggested 5.12% Halifax account.
It would be a mixture of 8.5%, 6.5% and 12%.
Does that help, or do I need to fine tune the explanation a bit more with calculations?

cmac · 18 June 2008 at 5:39PM

sloughflint wrote: »

No she wouldn't lose out.

Breaking down her 11k:
5k would be static and earning 6.25% for the whole year
The remaining 6k would be at various places in the year but always at a better place than the suggested 5.12% Halifax account.
It would be a mixture of 8.5%, 6.5% and 12%.
Does that help, or do I need to fine tune the explanation a bit more with calculations?

no thats great I understand and its if the balance goes above 2500 that the interest rate drops with A+L you`ve been a real help
hope to talk again thank you cmac :j

sloughflint · 18 June 2008 at 5:53PM

The only thing I'd check cmac is if A&L are really still paying her 8.5%. You say she opened it last year. A&L are notorious for dropping their rates after a certain amount of time ( hence why MSE close their accounts and open a new one later;)).
Also if she's not been using it, has she not been getting under-funding charges?

( I've deleted one post further up where I first suggested BM but messy way of funding in case you are confused )

cmac · 18 June 2008 at 5:58PM

sloughflint wrote: »

The only thing I'd check cmac is if A&L are really still paying her 8.5%. You say she opened it last year. A&L are notorious for dropping their rates after a certain amount of time ( hence why MSE close their accounts and open a new one later;)).
Also if she's not been using it, has she not been getting under-funding charges?

I hope not but will check all this out first

sloughflint · 18 June 2008 at 6:54PM

cmac wrote: »

hello folks
i`ve just came off the phone to halifax my mum has 11k to invest
nice chappy suggested
12% in regular saver £500 a month drip fed from 2 high interest accounts @ 5.12% money coming out month about.
and 5k in guaranted saver @ 6.25%
this works out just shy of 900 in interest for the year
does this seem good to you guys ?
my mum really needs her money to work for her she pays no tax
thank you

I've just realised what that nice chappy of yours was suggesting to you..... Two high interest current accounts that require £1000 pcm funding to get the 5.12%.
What an idiot!
I presume your Mum doesn't have a spare 2k per month to fund two current accounts?