Halifax Cutting Rates from 1/12/08

opinions4u

suki43 wrote: »

Hello

We've just opened a joint Halifax Web Saver Reward at the 5% and my OH has registered for online banking and we've to now wait for a temp. password etc. I am already registered for online banking and under My Accounts, this new saver account has a link by it saying "awaiting authorisation". Will this disappear once my OH has completed his online registration?

Also, I have about £650 in a Halifax ISA at 2.52% interest rate. Would it be best for me to transfer this into the new 5% account ie even with tax deducted will it still earn more interest for me than my ISA?

Many thanks

Suki

The logical answer to your question is yes. But this would lose the benefits of the ISA in future years.

Do you need access to the funds in the ISA? You could ask Halifax to fix the existing ISA for a year or longer, or consider transferring it to a higher paying competitor?

http://www.halifax.co.uk/isas/fixedrateisa.asp (move fast if you want to fix - I don't see these rates lasting).

http://www.moneysupermarket.com/isa/IsasResults.asp (review this in a few days when rate changes have settled if you wish to switch).

If you're a taxpayer and intending to grow your savings, protecting your tax free wrapper may have longer term benefits than simply exiting the ISA for a stronger rate in a "normal" account.

If you're likely to need the money in the next few months, get it moved to the Web Saver Reward as you suggest in your post!

suki43

opinions4u wrote: »

The logical answer to your question is yes. But this would lose the benefits of the ISA in future years.

Do you need access to the funds in the ISA? You could ask Halifax to fix the existing ISA for a year or longer, or consider transferring it to a higher paying competitor?

http://www.halifax.co.uk/isas/fixedrateisa.asp (move fast if you want to fix - I don't see these rates lasting).

http://www.moneysupermarket.com/isa/IsasResults.asp (review this in a few days when rate changes have settled if you wish to switch).

If you're a taxpayer and intending to grow your savings, protecting your tax free wrapper may have longer term benefits than simply exiting the ISA for a stronger rate in a "normal" account.

Thanks very much for your reply Opinions4U. Basically, I didnt have another savings account until today, so I have not used my ISA very effectively ie more like a regular savings account. I actually need the £650 in my ISA in March 09 so was thinking of putting it in the Web Saver and then opening a new ISA with a higher rate competitor as you suggest, with a view of actually capitalising on my £3600 annual allowance - given the very poor interest rate of my Halifax ISA, and now I have a proper savings account for life's unexpected expenses.

Does this plan sound prudent?

Many thanks

Suki

Mikeyorks

YorkshireBoy wrote: »

A very good excuse (and one which I'll use myself) because, in all the info I have from July, nowhere does it mention being a "Reward" account.

jem16 wrote:

Nor do I have any info about being Reward. As far as I knew it was simply a websaver I opened up.

I'm suitably astonished .... one comes to rely on certain posters to have an impeccable memory (or is it Search facility!) .... and then gets let down! And on consec postings.

I did remember it was a Reward account . Unfortunately I couldn't remember what was Reward'ing about it? But managed a distant glimmer that it was simply a far better, but variable, rate for a restricted period.

However - 'tis very clear you can't open the current one if you have one of the old ones. So - to keep my record blemish free - I opened one last night in the OH name (and she has 2 of the old ones)! No problem whatsoever (apart from the 5 mins between each page - not sure if that's Halifax or my ISP Orange - as it's a repeat performance tonight).

But last night the %rate was showing NA ... and remains that way tonight. My memory serves that I've seen before with Halifax that the Sat night Batch they run is very restricted - and it's the Sun night Batch that's a bit more fulsome and changes rates / gets rid of unwanted Websavers that add up to more than 5 etc etc? So I'm a bit puzzled at the one report that NA turned to 5% overnight Sat?

YorkshireBoy

Mikeyorks wrote: »

I'm suitably astonished .... one comes to rely on certain posters to have an impeccable memory (or is it Search facility!) .... and then gets let down!

'Evening (or is it morning?) Mike.

To be honest, it's not the end of the world if I don't get the 5% rate as I only opened it as a home for my Egg 6.3% fixed funds come July (left it 'till the last minute to eek out a full 4 months!! :rolleyes: ).

However, if my account shows 5% tomorrow then as far as I'm concerned that's the rate at which my interest will accrue, regardless of the "can't have two Reward accounts" statement.

10_66

10_66 wrote: »

I rang Halifax today to ask this, and was told that it wouldn't affect the opening of the Web Saver Reward, although the T&C's I downloaded when I opened it in July were called a Web Saver Reward. It would help if they called these accounts different names!

Despite Halifax telling me that I could open this Web Saver Reward (the one I opened in July is shown as a variable Web Saver when I see it online), the rate's still showing as N/A, so I gues it hasn't permitted it. If they're going to have these stipulations attached to these accounts, I wish to God they'd show the proper name as Web Saver Reward on the existing account details, instead of Web Saver variable. It's not much good them calling it one thing, yet showing the name on everything as something different. Also, if they're not going to permit it, their system shouldn't allow the opening process to take place.

jem16

Mikeyorks wrote: »

I'm suitably astonished .... one comes to rely on certain posters to have an impeccable memory (or is it Search facility!) .... and then gets let down! And on consec postings.

Did you miss the subtle smilie Mike?

jem16 wrote: »

My excuse is that I didn't know the other two I have were supposed to be Web Saver Rewards.

Age did let me down - I hadn't remembered. However I did manage to use the Search facility and found the thread back in July which talked about Reward.

However I still do not have any infro from Halifax stating that.

I did remember it was a Reward account . Unfortunately I couldn't remember what was Reward'ing about it? But managed a distant glimmer that it was simply a far better, but variable, rate for a restricted period.

However - 'tis very clear you can't open the current one if you have one of the old ones. So - to keep my record blemish free - I opened one last night in the OH name (and she has 2 of the old ones)! No problem whatsoever (apart from the 5 mins between each page - not sure if that's Halifax or my ISP Orange - as it's a repeat performance tonight).

I had already opened it before i saw this thread without realising it was a Reward web saver I'm supposed to have already.

So I'm a bit puzzled at the one report that NA turned to 5% overnight Sat?

I reported that and it's definitely true. My son and I opened one on Saturday. Both showed N/A on Saturday after being funded with £50. Both showed 5% on Sunday morning.

By the way they are both showing 5% this morning and my others have dropped to 3.8%

alared

The July reward that started as 5.8%,then was cut to 5.3% on the 1st November,is TODAY showing as 3.8%

apt

The Halifax rates have been updated on the website. Probably the worst of the worst:


Variable Rate Halifax ISA Saver

£27,000+
1.61%
1.61%



Halifax Saver Reward
Number of withdrawals

Ist figure if 0-3 withdrawals
second if 4+

AER / Gross p.a.
Net p.a.
AER /
Gross p.a.
Net p.a.
£100,000+
0.80%
0.64%
0.22%
0.18%
£50,000+
0.75%
0.60%
0.20%
0.16%


Halifax obviously has a different idea of the meaning of the word reward than me. Better news for savers - regular savers and children's regular savers still at 7% and 10% fixed respectively and one year ISA fixes at 5%, 5.5% for accounts over £30,000.

beecher

This may be a daft question, so apologies. I plan to put £50 cash into my newly opened Web Saver today but someone mentioned to me that the close of business may be before the banks shut? I was hoping to be there just after 5 - will this be too late to get the account funded today?

alared

afaik they close at 5pm