Fixed Rate Halifax Web Saver (3 month term)

bluebell_lily

Just wondered, if I need money in 3 months time, would it be better to invest in the 3 month fixed term (even though the interest is very low)?

3 months £500+ 3.75% 3.70% 2.96%

versus variable web saver at 3.8% variable.

Assuming that I want the money and interest, is it not better to opt for the first one, so that both money and interest is obtainable, rather than the latter, of where only the money but without the interest credited until the anniversary of opening?

apt

Providing the £1000 minimum balance is not a problem, you'd be better off avoiding both and going for the Manchester BS Premier Guarantee.

tightarsey

I am not hurting (smarting) as such, but do feel stupid for falling for this con, (as well as there probably being hundreds like me. I do read the small print and knew this account had to be funded to get the rate, and when it did drop 0.5% on Monday 01/12/08 I took it in my stride, but then to be punched in the face with another 2-2.25% on Friday 05/12/08 is a bit hard to swallow. I find it hard to believe that no one seems to condemn Halifax for advertising a rate on Sunday which they knew full well within 5 days would be 2.5% lower. Either you are all the same person or you all work for Halifax or Banking Association or both.
A 2.5% drop in a week must be a record? I'd be quite happy if my mortgage dropped by this in a week. I'll just follow my actions and withdraw my money. Trouble with the Halifax I just think of that Smarmy Young Halifax bank manager off 'the apprentice', doesn't bode well with me anyway.

opinions4u

tightarsey wrote: »

I am not hurting (smarting) as such, but do feel stupid for falling for this con
It's not a con if they advertise the rate and the funding criteria / cut off points.

I find it hard to believe that no one seems to condemn Halifax for advertising a rate on Sunday which they knew full well within 5 days would be 2.5% lower.
I would actually criticise the Halifax for not shouting louder about their great rates the previous Sunday in those circumstances. Are you really saying a bank should hide its best rates in these circumstances?

And what grounds do you have for saying they knew exactly what cut would be following 5 days later? The reality is that while they could anticipate a drop in LIBOR rates alongside the BofE reduction, they didn't know how big a drop was going to happen.

A 2.5% drop in a week must be a record? I'd be quite happy if my mortgage dropped by this in a week.
Well, on 30th November the Halifax SVR was 7% and a day later it was 5%. Not far off is it?

I'll just follow my actions and withdraw my money.
Your money. You must do as you feel appropriate. I still don't think a bank should be hiding its best rates from its customers. You are suggesting they should.

Trouble with the Halifax I just think of that Smarmy Young Halifax bank manager off 'the apprentice', doesn't bode well with me anyway.
That would be the one that no longer works for the Halifax then. Wonder if he was pushed or whether he jumped?

Sorry tightarsey. You've got this one so wrong.

tightarsey

Well glad to say I've finally set up the last payment back out of my Halifax Web Saver Account (Opened 30/11). After reading several past posts regarding the account, it seems that there is a 'new' Halifax Web Saver and the rates drop faster and more often than a baby born by Karen Mathews. (One guy was having trouble calculating his tax return the rate had changed that much)
I'm not sure how anyone could be bothered moving their money so often and for such a little amount.

Interestly it seems Halifax got the message seeing the money heading south - as the rate is now showing 5% , up from 2.1% so maybe they changed it to a Web Extra account..I'm not sure.. its far too complicated for me and I've lost interest. (sorry for the pun)

I really do miss the sheer simplicity of Icesave / Kaupthing Edge accounts, shame we all got cold feet and jumped ship, causing it to fail (or whatever other reason..)

Halifax you can keep your 2.1% Gross. So can existing customers look forward to 1.1% by January? Probably, I'm thinking. I think we should start a new discussion of types of transaction charges that would be appropriate for the banks looking after our money.

Will the Halifax 'mattress' account will be the one that doesn't charge a penny for looking after our cash?

opinions4u

tightarsey wrote: »

Interestly it seems Halifax got the message seeing the money heading south - as the rate is now showing 5%.

You have a Web Saver Reward account paying 5% fixed for a year as long as you keep over £50 in it and have fewer than 4 withdrawals.

To get a rate like that now is like gold dust. It allows additional deposits too!

Keep it and don't let pride cost you more money!

bluebell_lily

Hi, just looked at the Halifax website. Bad news. From tomorrow, the fixed rate web saver accounts are going down again! :eek:

Fixed Rate Halifax Web Saver

Interest rates below are subject to change, but are correct as at 12th December 2008. Please read previous interest rates if applying before this date.

Term Fixed Interest Rate(AER)
3 months £500+ 3.30%
6 months £500+ 3.50%
9 months £500+ 3.50%
1 year £500+ 3.50%

Term Fixed Interest Rate(AER)
2 years £500+ 3.00%
3 years £500+ 3.25%
4 years £500+ 3.45%
5 years £500+ 3.75%

it says correct as at 12 Dec 2008

Previous rates were:

Fixed Rate Halifax Web Saver Previous Interest Rates

Annual interest rates applicable from 5th December 2008.
UK annual rates:

TermAERGross p.a. Net p.a.
3 months £500+ 3.75% [FONT=Arial, Helvetica]3.70% [/FONT][FONT=Arial, Helvetica]2.96%
[/FONT] 6 months £500+ [FONT=Arial, Helvetica]3.75% [/FONT][FONT=Arial, Helvetica]3.72% [/FONT][FONT=Arial, Helvetica]2.98%[/FONT][FONT=arial,helvetica]
[/FONT]9 months £500+ [FONT=Arial, Helvetica]3.75% [/FONT][FONT=Arial, Helvetica]3.73% [/FONT][FONT=Arial, Helvetica]2.98%
[/FONT] 1 year £500+ [FONT=Arial, Helvetica]3.75% [/FONT][FONT=Arial, Helvetica]3.75% [/FONT][FONT=Arial, Helvetica]3.00%

[/FONT] 2 years £500+ [FONT=Arial, Helvetica]3.75% [/FONT][FONT=Arial, Helvetica]3.75% [/FONT][FONT=Arial, Helvetica]3.00%
[/FONT] 3 years £500+ 4.00% 4.00% [FONT=Arial, Helvetica]3.20%
[/FONT] 4 years £500+ 4.00% 4.00% 3.20%
5 years £500+ [FONT=Arial, Helvetica]4.00% [/FONT][FONT=Arial, Helvetica]4.00% [/FONT][FONT=Arial, Helvetica]3.20%[/FONT]

================
As asked on post #42, if I need the money and interest in 3 months time, would it be better to save in a 3 month fixed rate with Halifax, or a variable rate account with Halifax paying 3.8%, but without interest at the end of 3 month, since interest is paid yearly on the account?

Mikeyorks

bluebell_lily wrote: »

if I need the money and interest in 3 months time, would it be better to save in a 3 month fixed rate with Halifax, or a variable rate account with Halifax paying 3.8%, but without interest at the end of 3 month, since interest is paid yearly on the account?

Partially depends if the 3.8% (Web Saver Extra?) rate holds up .. as that's better at the moment. But if you really need the interest .... closing the account at that point will provoke payment of all interest due to the date of closure.

bluebell_lily

Mikeyorks wrote: »

Partially depends if the 3.8% (Web Saver Extra?) rate holds up .. as that's better at the moment. But if you really need the interest .... closing the account at that point will provoke payment of all interest due to the date of closure.

Hi Mikeyorks, yes it is the Web Saver Extra/Reward I think. The one opened in July 5.8% -> now 3.8%, not sure if there is another rate drop on that one. The problem is I don't want to close this and then open another variable at a later date as there won't be any available at that rate at a later date.

As it is two separate amounts, would it be better to open 2 x 3-month fixed rates for the money and interest?

bluebell_lily

Anyone?