Halifax Regular Saver Interest

Keith601

My Wife has had a Halifax Regular saver Account for the last 12 months, paying the 7% Rate. This has been drip fed (£250pcm) from her Halifax Web Saver (Variable) account, (presently 3.56%) This account has just reached maturity £3000. But the interest received was only £98.78 on the Regular saver account According to the calculator on Martins site and The interest should be £113. Has The Halifax got it Wrong?

opinions4u

£99 sounds about right to me.

http://www.halifax.co.uk/savings/calculator/calculator3.asp?ver=hfx

Baldur

Keith601 wrote: »

According to the calculator on Martins site and The interest should be £113. Has The Halifax got it Wrong?

You forgot to select the 'Basic Rate' option if you used this calculator http://www.moneysavingexpert.com/savings/savings-accounts-best-interest#savingscalc

Keith601

Hi There
Thanks for for your responses. My wife is a Non tax payer.So i chose the No Tax option. The Halifax are aware she does not pay tax and there was no indication of tax paid or any other charges in the interest statement.

opinions4u

Keith601 wrote: »

Hi There
Thanks for for your responses. My wife is a Non tax payer.So i chose the No Tax option. The Halifax are aware she does not pay tax and there was no indication of tax paid or any other charges in the interest statement.

She needs to register again. If the account is still open it will automatically convert to gross interest for the current tax year.

Keith601

Hi There

I Have contacted the Halifax, Who have confirmed, that my wife has not been stopped tax. I then queried there calculation of £98.78 interest on £3000 at 7%. (other calculators say it should be £113) They confirmed there calculation was correct. I have since discovered that certain calculations, seem to use an Average Inflation figure as well, which they do not tell you about. Can they do that? It appears therefore we do not have a level playing field when trying to work out what interest we should be getting. I find it all very confusing. Can anyone help please?

YorkshireBoy

Keith601 wrote: »

I have since discovered that certain calculations, seem to use an Average Inflation figure as well, which they do not tell you about.

That's nonsense!

Halifax work out your interest, and accrue it, each day based on...

closing cleared balance x 7% / 365

However, and as near as dammit, your interest calculation is thus...

(12 x £250) x 7% / 12 x 6.5 = £113.75

...assuming you deposit on the same day each month?

RayWolfe

Keith601 wrote: »

I have since discovered that certain calculations, seem to use an Average Inflation figure as well, which they do not tell you about.

You are definitely wrong there. Inflation will never enter interest rate calculations. As Yorkshireboy asks above, did you make payments on the same day each month?

Keith601

Yes I did make the same payments by standing order, same day each month.
If you go to this link http://www.halifax.co.uk/savings/cal...r3.asp?ver=hfx and type in 0 lump Pay £250pcm for 1 yr at 7% they calculate £98.15 gross. if this figure is not correct what are they doing?

apt

You should put in £250 as the lump sum not zero as you paid that at the start of the year. That should give you the correct interest. The model will assume you've made 13 payments, but that won't make any difference to the interest figure.

YorkshireBoy

Keith601 wrote: »

Yes I did make the same payments by standing order, same day each month.

Unlikely they would arrive same day each month, due to weekends and Bank Holidays...but shouldn't make £15 difference anyway.

if this figure is not correct what are they doing?

Suggest you place it in query and ask for an interest breakdown (which they should provide FOC). However, if you post your dates of deposit (ie arriving in the account, not date sent) someone will sense check it for you (might save some embarrassment?).