Halifax WebSaver

brookerbabyisababy

Hi

I have a Halifax websaver variable showing a rate of 5.00 Gross. This has been just recently been opened - is this accurate - only yesterday it was something like 1.25 gross. What is going on?

rb10

When was the account opened? And what's the balance? If it was opened during November, with a balance of at least £50, then it would be a Web Saver Reward, which has a fixed rate of 5% for one year (despite confusingly showing up as a variable rate Web Saver!).

brookerbabyisababy

yes i opened it in november. but i only funded it yesterday.

rb10

That's very interesting. All Halifax Web Saver accounts opened from 5/11 to 1/12/08 were automatically made Web Saver Rewards. This is the relevant part of the T&Cs, taken from http://www.halifax.co.uk/savings/forms/generic_sav_app/forms/pdfs/WS-TC-final.pdf

For Halifax Web Saver Rewards opened during the limited period from 5 November 2008 to 1 December 2008, the fixed reward interest rate applies for a year following receipt of the opening deposit into your variable rate without card option; provided you keep between £50 and £500,000 in your option and make no more than 4 withdrawals during the 12 month reward period. If more than four withdrawals are made during the 12 month reward period, the variable rate Halifax Web Saver (without card) interest rate and account conditions apply to your account from the date of the fifth withdrawal.

So I'm not sure how to interpet this ... as the T&Cs say that the "fixed interest rate applies for a year following receipt of the opening deposit", that indicates that you may get the 5% fixed rate for 1 year from yesterday, despite the fact that you didn't fund the account until way after the date the promotion ended.

If that is the case, then I am very jealous! I've got one of these, which just has £50 in it, which I will use when an existing 6.25% account finishes in June. But I will only get 5% until the end of November (my anniversairy of opening and funding), whilst if I'd known this I could - potentially - have not funded it until I needed it this June, so had 5% until June 2010! I had assumed that in order to guarantee the rate, it had to be not just opened but also funded by 1st December.

brookerbabyisababy

basically what i wanted to know was is the rate accurate listed by the halifax in the online section? have people had errors in relation to this - or is it allows the same as listed?

rb10

I would imagine that it's taken directly from the rate that they actually use to calculate your interest, so can be 99% sure it would be accurate. Also, the T&Cs do imply that you would get this rate of 5% in your position (as in my post above), so you can be fairly sure.

But if you're unsure, phone them up, and they can actually look at your account and see what their system says the rate is.

Lorian

You should get a letter confirming the opening of the account and the interest rate. There is another thread already on this account somewhere which is enlightening regarding the reported interest rates online.

Mine was opened on 12 Nov and will pay 6% on anniversy even though it currently says 2% online. Thankfully I have the letter!

rb10

That is a Guaranteed Saver Reward Lorian, the OP has a Web Saver Reward, a totally different account.

Mikeyorks

Lorian wrote: »

Mine was opened on 12 Nov and will pay 6% on anniversy even though it currently says 2% online. Thankfully I have the letter!

As the previous post ... it's actually 6.25% ... and it's the Guaranteed Saver Reward. The OP is discussing the (2nd manifestation of) the WebSaver Reward. So it's an ApplesReward and PearsReward comparison? And - yes - someone at Halifax should be shot.

If the '2% online' refers to the Halifax website ..... that's OK. But if the '2% online' applies to the rate showing on the account (Guaranteed Saver .... because the 'Reward' bit doesn't show!) you can see on your Portfolio ..... that's not OK. As it should show 6.25% if you've adhered to the T&Cs thus far ...... so, letter or not ..... you should be looking at it. You can breach the T&Cs at any point in the year by dropping below the £2500 minimum or exceeding the withdrawals permitted ... so the initial letter is not a guarantee of the rate ...... your management of the account dictates that.

rb10

Mikeyorks wrote: »

As the previous post ... it's actually 6.25% ... and it's the Guaranteed Saver Reward. The OP is discussing the (2nd manifestation of) the WebSaver Reward. So it's an ApplesReward and PearsReward comparison? And - yes - someone at Halifax should be shot.

If the '2% online' refers to the Halifax website ..... that's OK. But if the '2% online' applies to the rate showing on the account (Guaranteed Saver .... because the 'Reward' bit doesn't show!) you can see on your Portfolio ..... that's not OK. As it should show 6.25% if you've adhered to the T&Cs thus far ...... so, letter or not ..... you should be looking at it. You can breach the T&Cs at any point in the year by dropping below the £2500 minimum or exceeding the withdrawals permitted ... so the initial letter is not a guarantee of the rate ...... your management of the account dictates that.

Oh, they do make it complicated, don't they!

I expect Lorian has the second Guaranteed Saver Reward, i.e. the one from November, which is 6%, but will only show as 2% until all conditions have been met.

* The first Guaranteed Saver Reward was in June/July 2008. This was fixed at 6.25% until the first of the following applied: (i) Second withdrawal; (ii) Balance falls below £2500; (iii) One year after opening the account. Rate shows in online banking as 6.25% until this happens. This is the one you are talking about (and the one I have )

* The second Guaranteed Saver Reward was in November 2008. This was fixed at 6%, but in this case the Reward interest is added in at the end of the year for every month in which a Halifax/BOS current account has been credited with at least £1k. So interest accrues during the year at the standard (variable) Guaranteed Saver rate (currently 2%, this being what is shown on internet banking) before being recalculated at the end of the year. This is Lorian's, I think.

* They've since had a third Guaranteed Saver Reward in December 2008 (3.5%?), and there's now there's a fourth, at 3%, but I can't remember the conditions for these and so how they will appear in internet banking.

Mikeyorks

rb10 wrote: »

I expect Lorian has the second Guaranteed Saver Reward, i.e. the one from November, which is 6%, but will only show as 2% until all conditions have been met.

Apologies .... that may well be correct. I was on Exor duties for a lot of that time - so suspect that mainly escaped my radar.