Halifax 6.88% AER Fixed for 3 months. Any good?

What's the maximum amount allowed for the 3 month term? I can't seem to find it on their web site.

debbie42 wrote: »

What's the maximum amount allowed for the 3 month term? I can't seem to find it on their web site.

According to my BoS online banking the max one can transfer in is a pitiful 9,000,000, it would seem..... Doh! that account is no good for me then......

I hope you lot have some small change of lesser amounts you can throw at it....
Sorry, if that's no good for you either Debbie..... lol

sav4it wrote: »

My brain is fuddled now.Don't know what I was thinking when I said the above and can't think what the flaw was but in essence, I was trying to suggest that it is a negligible gain but so what if it is easy to arrange then you may as well I suppose.

Looking at it differently:
You lose £25 in interest from S for those 3 months ( 2000*0.0625*08/4)
You earn in H £27.52 ( 2000*0.0688*0.8/4) which in turn makes £1.03 extra interest ( 27.52*0.0625*3/4*0.8)
net gain £3.55 ( 27.52+1.03-25)
Anyone care to explain what was wrong with earlier post ?

You assumed that it was only the extra £2.52 that then attracted further interest. It's the whole interest of £27.52 paid out after the 3 months that attracts further interest.

Actually, assuming no days are lost in transferring the money (which is rarely true), you would benefit from the 3 month account even if the interest rate was identical to what you currently earn. That's the benefit of compound interest ......

I went to my local branch to enquire about this, so thought i would like to share my knowledge here..

As i have mentioned previously, you need a variable web saver a/c to open this fixed a/c. Say, you open a 3-months fixed a/c - At the end of 3 months, you deposit+interest would be transferred automatically to your web saver a/c.

You are NOT allowed any withdrawals. Should you require one, for any circumstances, you need to phone the online services or drop into one of the branches, where they can cancel your a/c - In that case, you deposit will be transferred back to the variable web saver a/c, but you will lose your interest.

Hope that makes it clear!

Mikeyorks wrote: »

You nominate the account (which must be a Halifax variable Web saver - even if you only leave the money there a day, on maturity of the fixed rate account) as you open the fixed rate Web. Bit unsure what you mean by '3 months notice' - as this is a fixed period account of only 3 months duration - you effectively set the close date as you open it? The reason for the variable account is two-fold - as per Halifax :

I nominated my Halifax Current account to receive the money on maturity and this is where the money was paid from. I do already have a variable websaver and either could be nominated. If you don't already have a current account you will have to open a variable rate websaver which I believe will be done automatically.

Nigel