Halifax Reward

opinions4u

withnell wrote: »

Interesting, yesterday I went in to my nearest branch and asked if I could open an account that would automatically convert to Reward on 9th Feb

No. You can't.

and was told that the normal c/a will convert aswell as the moneybacks!

Not in February they won't. They imply that all accounts will change before year end though. They will allow holders of other current accounts to request a transfer after 9th Feb though.

For me its a great account, as most of my salary is gone within 10 days of payday for D/D and credit card, and I've always been of the opinion that you don't spend what you don't have

If you stay in credit and rely only on your own cash, this is a cracking account to transfer to.

BobRock_2

Charges are not “abolished”, they are simply re-packaged.

Let us get this straight: if you are £1 into your ARRANGED overdraft, you will pay £1 each day! So “no interest charged” account actually charges 100% interest per day. That is annual interest of 36,500%! Being £100 in red within the arranged overdraft limit, to take a less dramatic example, will attract interest of 365% while before this 'improvement' it was in the range of 6% - 20%.

So while people with unauthorised overdrafts might see some benefit of the new system (as long as they pay off within few days), for majority of those who now and than dip into their arranged overdraft the charges will be much, much higher.

Now, the whole argument about high and confusing overdraft charges related to the UNAUTHORISED overdraft. How come that users of the ARRANGED overdraft got hammered? And the argument is clarity? Well, it looks to me like stupidity tax. You couldn't work out your APR? Well, good excuse for ramming it up from 20% to 2,000%. Glad you can calculate it now.

Sure enough, people can vote with their feet, but how can some still find sympathy for the UK banks is beyond me...

opinions4u

BobRock wrote: »

Charges are not “abolished”, they are simply re-packaged.

Let us get this straight: if you are £1 into your ARRANGED overdraft, you will pay £1 each day! So “no interest charged” account actually charges 100% interest per day. That is annual interest of 36,500%! Being £100 in red within the arranged overdraft limit, to take a less dramatic example, will attract interest of 365% while before this 'improvement' it was in the range of 6% - 20%.

So while people with unauthorised overdrafts might see some benefit of the new system (as long as they pay off within few days), for majority of those who now and than dip into their arranged overdraft the charges will be much, much higher.

Now, the whole argument about high and confusing overdraft charges related to the UNAUTHORISED overdraft. How come that users of the ARRANGED overdraft got hammered? And the argument is clarity? Well, it looks to me like stupidity tax. You couldn't work out your APR? Well, good excuse for ramming it up from 20% to 2,000%. Glad you can calculate it now.

Sure enough, people can vote with their feet, but how can some still find sympathy for the UK banks is beyond me...

I refer you to the final line of my previous post.

"If you stay in credit and rely only on your own cash, this is a cracking account to transfer to."

If you slip in to small and pointless overdraft then it's time to stop!

apt

Kavanne wrote: »

Honestly?

This account is FANTASTIC for me. I have 2 current accounts with Hfax and I am going to switch both over to reward on 9th Feb. This is a free £120 a year for me as I am never overdrawn and with a couple of standing orders I can easily fund each account with £1000pm. Job done. I am a very happy customer. Plus I have fixed rate savings with them at 6% for 12 months and a regular saver at 10%!! What more could I ask for? (except fixed rate savings at 7% lol)

Kavanne before enthusiastically switching to the Halifax Reward ,which is indeed better for customers who don't go overdrawn, check that switching does not invalidate your guaranteed saver at 6%. The Reward is not one of the qualifying accounts which you have to pay £1000 per month into listed in the terms and conditions. I suspect Halifax might alter the conditions to include the Reward as a qualifying current account, but it's as well to make sure (preferably in writing). Also there must be a limit to the number of Reward accounts you can open in one name otherwise people could rack up loads of fivers by moving a grand from one account to the next.

YorkshireBoy

apt wrote: »

Also there must be a limit to the number of Reward accounts you can open in one name

A maximum of 3.

BobRock_2

opinions4u wrote: »

I refer you to the final line of my previous post.

"If you stay in credit and rely only on your own cash, this is a cracking account to transfer to."

If you slip in to small and pointless overdraft then it's time to stop!

The point surely must be how a bank can claim they charge no interest when in fact the interest they charge is staggering? Hundreds, even thousands %!

And how they can change terms and conditions, increase fees, charges etc. (on existing accounts) in a way no other business can.

opinions4u

BobRock wrote: »

The point surely must be how a bank can claim they charge no interest when in fact the interest they charge is staggering? Hundreds, even thousands %!

I would agree with this point and the FSA should look at it. That said, they have allowed balance transfer fees to be excluded from credit card APRs so you are unlikely to get a result.

And how they can change terms and conditions, increase fees, charges etc. (on existing accounts) in a way no other business can.

So Tesco don't put up the price of sugar to new and exisitng sugar buyers from time to time? Can BP vary the price at the pump without giving notice? At least the bank gives appropriate notice of changes. Unlike most other businesses.

Natbag

I'm so confused by this, can anyone help please?
I have an Ultimate Reward current account with an agreed £280 overdraft. I'm on maternity leave and money is tight so I'm using the overdraft every month at the moment and have incurred the occasional charge for accidentally going over it at the end of the month.
So am I right in thinking I'll be charged £1 a day for having my overdraft? And an additional £5 per day for every day I am over it? And is this on top of the £12.50 account fee? I won't get the £5 interest as I won't be putting £1,000 a month in.
Also, am I best sticking with this account, switching account or switching bank as when I'm only bringing in £117 a week it seems a lot to be paying for banking.

LongTermLurker

Natbag wrote: »

I'm so confused by this, can anyone help please?
I have an Ultimate Reward current account with an agreed £280 overdraft. I'm on maternity leave and money is tight so I'm using the overdraft every month at the moment and have incurred the occasional charge for accidentally going over it at the end of the month.
So am I right in thinking I'll be charged £1 a day for having my overdraft? What will the charges be if I go over it? And is this on top of the £12.50 account fee? I won't get the £5 interest as I won't be putting £1,000 a month in.
Also, am I best sticking with this account, switching account or switching bank as when I'm only bringing in £117 a week it seems a lot to be paying for banking.

I haven't read the rules enough to answer so I'll leave it to someone who has. However, on £117pw I wouldn't be paying £12.50 for an account - unless you REALLY use the benefits and they would cost you more otherwise (eg on your income and a new mother, do you really need annual travel insurance?) Just a thought.

Another way of looking at it is that the account is costing you 10.68% of your income - that's a lot imo.

tripled

Natbag wrote: »

I'm so confused by this, can anyone help please?
I have an Ultimate Reward current account with an agreed £280 overdraft. I'm on maternity leave and money is tight so I'm using the overdraft every month at the moment and have incurred the occasional charge for accidentally going over it at the end of the month.
So am I right in thinking I'll be charged £1 a day for having my overdraft? And an additional £5 per day for every day I am over it? And is this on top of the £12.50 account fee? I won't get the £5 interest as I won't be putting £1,000 a month in.
Also, am I best sticking with this account, switching account or switching bank as when I'm only bringing in £117 a week it seems a lot to be paying for banking.

As far as I'm aware the ultimate reward account isn't affected currently, only Moneyback current accounts to start with.