Halifax variable web saver: the mysterious 'reward' version

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Just had an interesting conversation with a guy at the Halifax online help desk.

I was confused because I could see that the current rate of interest on my Halifax variable web saver (no cash card version) was so high at 5%. So he went in and looked at it and said that yes he could also see that it said 5%. Whereas this is currently advertised at only 0.76% http://www.halifax.co.uk/savings/comparealloursavingsaccounts.asp

He went off to discuss with the supervisor and came back about 20mins later apologising for the wait. Apparently 5% is correct. It's because (mysteriously) my account is a 'reward' account and if I do NOT withdraw any money the rate stays high. In January I withdrew money and the guy could see that at that point the rate went down to about 1%.

Interesting because although it is still a variable account it looks like currently it's about as good as the Halifax regular saver but without the penalty of getting closed if you miss a payment or withdraw money.

I say 'mysteriously' because the Halifax guy said they've had loads of problems of people having no idea about their accounts: in the letter I got from them when I signed up, it said nothing at all about it being called a reward account, and it doesn't say in the account records either. Also no info about the rate dropping when I withdrew money. Weird but could be a hidden gem?

rb10

I'm guessing you opened the account during November 2008? Because all Web Savers opened then were automatically opened as Web Saver Rewards, which gave a fixed rate of 5% (provided the balance remains above £50 for the year) until the first of these happened: (i) the date of the fifth withdrawal; or (ii) one year after the account was opened.

The full T&Cs are here, look specifically at page 17 for the Reward account.

So as long as your balance stays at least £50, and you make no more than four withdrawals, then you are guaranteed 5% on this account until November.

And you can transfer money in whenever you like.

I agree that it is confusing, mine shows up on internet banking just as "Variable Rate Web Saver", which is quite clearly is not!

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Yes I just found that in the T&Cs... and for anyone else interested, it may have recently been updated, because it seems to say that the Reward thing is started again from 4th February this year (don't know how much interest though and it doesn't say when it ends).

opinions4u

The Web Saver Rewards are (from memory):

July 2008 - BofE tracker plus 0.8% for a year (keep £1 or more in unlimited withdrawals)
Nov 2008 - 5% fixed for a year (keep £50 or more in and limit of 4 wdls)
Feb 2009 - 1% fixed for a year (keep £1 or more in and limit of 3 wdls)

Mikeyorks

diagonal_lines wrote: »

Weird but could be a hidden gem?

If you opened it around Nov 08 (minimum £50) .... then it does pay 5% for one year. But exceed the maximum of 4 withdrawals and it will drop down to standard Websaver rates. These don't show up as 'Reward' .... as they won't know you've adhered to the T&Cs until you either exceed 4 withdrawals or drop below the minimum £50 balance.

Several earlier threads, as a lot of people opened these as rates were going into freefall end Nov / early Dec. Mine has £50 in it currently. But will have a further much larger sum in June when my Halifax 6.25% Guaranteed Saver (Reward) ends.

EDIT .... gosh the terrible Halifax twins got in first again!

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The irony of it, is that I only opened that account because I HAD to in order to use one of the fixed rate ones. And I got completely the wrong end of the stick with that one and thought I could pay regular amounts into it. So I set up a transfer to the fixed rate account from my Barclays current. However, the fixed rate account didn't accept my money and automatically transferred the money into the reward account! I was sooooooo confused!

rb10

Mikeyorks wrote: »

If you opened it around Nov 08 (minimum £50) .... then it does pay 5% for one year. But exceed the maximum of 4 withdrawals and it will drop down to standard Websaver rates. These don't show up as 'Reward' .... as they won't know you've adhered to the T&Cs until you either exceed 4 withdrawals or drop below the minimum £50 balance.

I'm not sure whether that's totally correct. The T&Cs are say

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 as the variable rate only applies from the date of the fifth withdrawal, presumably you get 5% until that date, and then 0.xx% (variable rate)afterwards (like the Guaranteed Saver Rewards). But it's certainly best to stick to max four withdrawals, to be on the safe side.

Mikeyorks wrote: »

Several earlier threads, as a lot of people opened these as rates were going into freefall end Nov / early Dec. Mine has £50 in it currently. But will have a further much larger sum in June when my Halifax 6.25% Guaranteed Saver (Reward) ends.

Same here, £50 at the moment, but the contents of my 6.25% GSR going in in June.

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In the first few days of opening the reward account, I paid in a lump sum and then transferred it to the fixed rate account leaving only £1 in the reward account for about a month before money started coming into it again.
I think a transfer to another Halifax account would not count as a withdrawal and stop me getting the 5%?
Can anyone answer that?

rb10

diagonal_lines wrote: »

In the first few days of opening the reward account, I paid in a lump sum and then transferred it to the fixed rate account leaving only £1 in the reward account for about a month before money started coming into it again.
I think a transfer to another Halifax account would not count as a withdrawal and stop me getting the 5%?
Can anyone answer that?

I would say it most certainly would count as a withdrawal. Otherwise that would be an amazing loophole (transfer to a Halifax account with no withdrawal restrictions, then take it from there!).

But you should still get 5% until the date of your fifth withdrawal, so unless you've made other withdrawals, it should be ok

What rate does it give in internet banking?

Mikeyorks

rb10 wrote: »

I agree that it is confusing, mine shows up on internet banking just as "Variable Rate Web Saver", which is quite clearly is not!

They're just waiting to catch you out!!

Mine is titled 'MAX4WITHDRAWALS' ..... as it's sitting on the OHs Portfolio ..... and anything can happen there! But it's intended to be the recipient of the 6.25% account when that terminates, in June. Plus the Reg Savers .... as I doubt the % will be worth continuing a 2nd year. Mainly as there's nowhere to drip feed from!

Now ... what to do about the Anglo-Irish fixed term that's still a few months to run ..... hopefully :rolleyes:

rb10

Mikeyorks wrote: »

Mine is titled 'MAX4WITHDRAWALS'

He, he, we think the same way. Mine is titled WEB SAVER REWARD, as I'll remember it from that.