halifax 10% regular saver

david69_2

I signed up to this savings account in july could someone tell me whether the rate is fixed at 10% for the 12 month duration

Speculator

yes, it's fixed at 10% for 12 months.

Mikeyorks

It is ..... provided you meet the monthly funding criteria (min £25 !!?} / max £500 .... by the 28th etc etc)

david69_2

I'm keeping it going at £500 a month bit of a struggle some months but it will be worth it come june

Mikeyorks

Don't forget (bearing in mind you can only pay in £500 per calendar month) .... that depending on the anniversary date and the date you first funded - you can often get a 13th payment in if you wish.

eg - if your anniversary date is latish in July and your 1st payment was in July ...... then your 12th payment will be in June 09? You can make a 13th payment 1st July 09 .... and get 10% on that up to the anniversary date - if you wish. They will then (anniversary date) return your 13 x £500 + all accrued interest.

Sam37

Mikeyorks wrote: »

Don't forget (bearing in mind you can only pay in £500 per calendar month) .... that depending on the anniversary date and the date you first funded - you can often get a 13th payment in if you wish.

eg - if your anniversary date is latish in July and your 1st payment was in July ...... then your 12th payment will be in June 09? You can make a 13th payment 1st July 09 .... and get 10% on that up to the anniversary date - if you wish. They will then (anniversary date) return your 13 x £500 + all accrued interest.

On the 13th 500 pound, you'd get the interest of only a couple of days though (maybe 50p or so). I don't think I'd risk breaching terms and conditions (and therefore the whole 10% interest of a year) for this. The terms state you can only invest 500 a month, and I am not clear how they define 'month' - and in these times they may get rather pedantic about these things to avoid paying out the interest-. Maybe it's just my paranoia...

oldfella

On the 13th 500 pound, you'd get the interest of only a couple of days though (maybe 50p or so).

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the point is you get an extra 3 weeks interest on the whole sum - so you exchange 3 weeks interest on £500 at the start of the year, for 3 weeks on £6500 at the end of the term. Net gain £36 before tax.

Sam37

oldfella wrote: »

On the 13th 500 pound, you'd get the interest of only a couple of days though (maybe 50p or so).

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the point is you get an extra 3 weeks interest on the whole sum - so you exchange 3 weeks interest on £500 at the start of the year, for 3 weeks on £6500 at the end of the term. Net gain £36 before tax.

Sounds good old fella, but I don't understand how it works.

My understanding is that you get interest on the money in your account once it has arrived. You don't get the full 10% on 6000 (or 6500) because most of that money has been in the account for less than a year. It certainly seems to have worked this way with previous fixed rate reg savers.

I don't understand how you can ''exchange weeks'', as there is a maturity date a year after opening. I am probably thick though!

oldfella

Sounds good old fella, but I don't understand how it works.

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the benefit is gained by opening the account late in the first month - so you only get a few days interest in the first month on a small amount, but exchange it for 3 weeks interest in the last month on £6500.

Sam37

Thanks for your perseverance Old Fella!

If interest is calculated daily, and the end date is not bound to a calender month, I still can't see the point.

A couple of weeks of a balance with 6000 pound versus 6500 pound, still doesn't make 36 pound difference.

paranoid-taxpayer

Mikeyorks wrote: »

Don't forget (bearing in mind you can only pay in £500 per calendar month) .... that depending on the anniversary date and the date you first funded - you can often get a 13th payment in if you wish.

eg - if your anniversary date is latish in July and your 1st payment was in July ...... then your 12th payment will be in June 09? You can make a 13th payment 1st July 09 .... and get 10% on that up to the anniversary date - if you wish. They will then (anniversary date) return your 13 x £500 + all accrued interest.

I think it could turn out to be a bad idea paying the thirteenth instalment. It probably violates terms and conditions, and invalidate the account, and end up getting the interest rate downgraded. Read the terms again anyone on here and post your comments please.