The Halifax 10% regular saver......

reliable65

Anybody else just got a call from them saying that it doesnt pay 10%?

Woman has just told the wife it works out at 4.odd % over the 12 month and that the 10% only applied to the first payment

what are we supposed to get?

we have £5000 in the saver account that was supposed to make it up to 12% and have paid in £500 a month for the last 6 months !!!!

MrExample

Well, you'll only get a full year's interest on the first payment, of course. But the AER should still be 10%.

At least I bloody hope it is!

You might want to check the rate on your other account, as mine was recently dropped to < 4%, which would mean the poor rate on the £5000 offsets the extra 2% you get (i.e., it's not worth it overall.)

jauntyangle

I think they mean that the interest rate is 10% PER ANNUM, so only the cash that is in the account for a whole year will get 10%.

cornerstone13

We haven't had a call but if you think about it .............

If the regular saver is for a one year period and the interest is 10% and you pay in £250 per month, at the end of the year you've saved £3000 BUT you haven't earned 10% interest on £3000 because the capital is being added to throughout the year. So

Month 1 - £250 balance earns 10%
Month 2 - additional £250 balance earns 10% divided by 12, multiplied by 11 months
Month 3 - additional £250 balance earns 10% divided by 12 multiplied by 10 months
and so on.

We've just had a Britannia 7.5% regular saver mature and it earned £112 interest before tax on £3000. If it paid 7.5% on the entire £3000 for the whole year, we would have received £225 in interest.

RayWolfe

Of course it pays 10% on all the payments! There will only be £6K for 12 months; £5.5K for 11 months; £5K for 10 months; etc. Think about it. If you expected interest of £600 you have not thought about it. You will receive around £300 depending upon when your contributions are made.

FairyElephant_2

RayWolfe wrote: »

Of course it pays 10% on all the payments! There will only be £6K for 12 months; £5.5K for 11 months; £5K for 10 months; etc. Think about it. If you expected interest of £600 you have not thought about it. You will receive around £300 depending upon when your contributions are made.

Exactly Ray - just what I was typing when your message popped up!

I thought Martin made it very clear in his article about reg. savers. They are great if you are saving 'new' money every month (ie. straight from your salary) or if you 'drip feed' them from another account which pays a decent rate of interest.

I don't think that Halifax can/will change the rate on existing 10% reg. savers, as far as I know they have to stick to the agreed rate. With savings rates dropping all around, I'm glad I've got one of these!

reliable65

ok thanks everyone

Mikeyorks

You're being a victim - if you're not careful - of the sales side at Halifax. Who pursue this line (some earlier threads) in the hope you will switch your funds to something that pays better bonuses to the salespeople.

The 10% Reg Saver pays ....... unsurprisingly, 10%! The only time it doesn't is when you have £5k in a relevant account for the year ...... then it pays 12%. But equally unsurprisingly .... it only pays at that level for funds actually in the account on a daily basis.

Only the Harry Potter account anticipates what you intend to put in .... and pays interest on that! And, unfortunately, neither Halifax nor any other Bank have one of those.

They can't drop the rate on the Reg Saver during the 1st year (unless you depart from the T&Cs) .... it's fixed, with the exception of the bonus that can move it from 10% to 12%.

RayWolfe

Mikeyorks wrote: »

Only the Harry Potter account anticipates what you intend to put in .... and pays interest on that!

Ooooh Mike, Have you got a link to that account? It looks really interesting particularly as I can anticipate putting several million into it.

rb10

MrExample wrote: »

You might want to check the rate on your other account, as mine was recently dropped to < 4%, which would mean the poor rate on the £5000 offsets the extra 2% you get (i.e., it's not worth it overall.)

If you have £5k in your nominated account, why didn't you get the Guaranteed Saver Reward, fixed at 6.25% for the year?