Halifax Savings - is there a catch ?

DavidRossitter

Hi

I opened a high interest savings account in November that guaranteed 6% for 12 months provided i open a current account, pay £1000/month into it and make no more than 3 withdrawals in the year.

To my delight when I asked, any further deposits in the 12 month period will also attract 6%. Given I am one of the lucky ones benefitting from low mortgage rates - currently 1.95% I make money borrowing and sticking in this account. For once factors have come together to my benefit.

When I looked online recently it said that the interest rate on the savings account was 2% so i called them up and was told that i was definitely on 6%. I asked where this was evidenced as the offer has naturally now been withdrawn so there is no reference to 6% and was told the reason it wasnt listed as the 6% bonus is only paid at end of the year. I pointed out this was a bit strange not to have any documentation and asked for a letter confirming all this - which I have received and that's what it says.

So what's the catch - the account has a limit running into millions so in theory I could go borrow what I can and make a profit. As they say when it looks to good to be true it probably is so what's the catch ?

Thanks

Broadback

I am confused, where can you borrow money at that low rate?

YorkshireBoy

Broadback wrote: »

I am confused, where can you borrow money at that low rate?

Sounds like it's from savings offsetting a mortgage, or any mortgage where previous overpayments can be drawn down?

Also available from from credit cards, although this would be a gamble if you'd paid a fee and mortgage rates rocketed back up before you'd had chance to recover the fee.

DavidRossitter

Hi

My present mortgage rate is 1.95% and my savings rate is supposedly 6% - I have some cash that in a normal economic situation would be used to pay off part of the mortgage but might as well stick it in this account for 12 months

David

Lorian

DavidRossitter wrote: »

When I looked online recently it said that the interest rate on the savings account was 2% so i called them up and was told that i was definitely on 6%. I asked where this was evidenced as the offer has naturally now been withdrawn so there is no reference to 6% and was told the reason it wasnt listed as the 6% bonus is only paid at end of the year. I pointed out this was a bit strange not to have any documentation and asked for a letter confirming all this - which I have received and that's what it says.

Everyone's says 2% given past comments on here, but I had a letter from HBOS a few weeks ago confirming the 6% and T&C's. The limit on the account was a penny under 10 million when I opened it.

YorkshireBoy

DavidRossitter wrote: »

My present mortgage rate is 1.95%

Are you 100% certain that there isn't a collar on your mortgage rate? For example, my YBS offset won't go below 3.75%.

Calchas

DavidRossitter wrote: »

I opened a high interest savings account in November that guaranteed 6% for 12 months provided i open a current account, pay £1000/month into it and make no more than 3 withdrawals in the year.

This is purely a guess. Feel free to ignore what is written below completely!

The rate might appear lower purely because the criteria has not yet been met: indeed it cannot be met until November 2009.

2% may be the rate should you either: fail to keep the current account open; fail to pay in £1,000 per month; or make four or more withdrawals during the year.

DavidRossitter

That's my guess - that if i meet the criteria (that are not very onerous) then I will get 6%. Just wondering if there was a catch that I had missed - i dont want from an ignorance perspective want to find that there is some small print that I fall foul of - there is nothing in the sign up or subsequent letter that suggests there is.

btw my 1.95% mortgage rate is a 1.45% discounted variable rate and the variable rate is guaranteed to be no more than 2% above base - so effectively i have a 0.45% tracker for this period. No collar

Thanks, David