Halifax High Interest Current Account

Rosie75

I've just noticed that the interest rate on the Halifax High Interest Current Account has gone down to 2.5% (was 5.12 when I switched in November). Hardly surprising, but surely they can't call this a "High Interest" current account? It seems ridiculous. Perhaps a rename to the "Not As Poor Interest As Other Current Accounts Current Account"? or the "It's Just About Possible to Earn a Few Pennies Interest Current Account"?

Inactive

Sadly, 2.5% is " High Interest " in this climate, many savings accounts are not paying as much as that now, let alone current accounts.

maxsquared

Ye, I am with Halifax, and the current account only give out 0.10% and Saving only gives around 1%, so basically if I save 1 000 in a year I only get 10 pound or less back on savers and 1 pound or less back on current account, why even bother.

rb10

maxsquared wrote: »

Ye, I am with Halifax, and the current account only give out 0.10% and Saving only gives around 1%, so basically if I save 1 000 in a year I only get 10 pound or less back on savers and 1 pound or less back on current account, why even bother.

But that's only because you have accounts that pay low rates of interest. As was stated in the posts above yours, you can get 2.5% on the current account, and they have several accounts paying 3%+.

Ok, a few months ago, none of these would have been seen as 'good' rates, but remember that now the BOE rate is just 1.5%.

opinions4u

I think any bank paying 1% over and above the Bank of England base rate is entitled to call it "high".

Given that the average instant access savings rate is apparently 0.81%.

That said, I'd be very surprised if they retain a rate as high as 2.5% much longer.

Rosie75

opinions4u wrote: »

That said, I'd be very surprised if they retain a rate as high as 2.5% much longer.

I agree - but at what point does it stop being a "high interest" current account? Is it still "high interest" at 0.5%, if the BoE base rate is 0%? If you have a high interest current account, are they still obliged to pay you interest, even if banks are no longer paying interest and expect us to pay them instead to keep our money for us?

steveteach

The banks supply the accounts and make the rules, as such they can also change the % they offer when they want unless their T&C say otherwise. As customers we are just another opportunity for them to make money. We all need to keep an eye on the changing conditions of our accounts and remember that the trend is currently downwards.