Halifax reward account

purt

zedyy wrote: »

Sweet thanks guys. You're really helpful.

Before i sign up can someone clarifiy this...




I'm only on a salary of £18K a year so im not paying higher tax, but can someone explain to me what that gobble-de-gook means in English?

The reward payment is net of tax (20%). If you were a higher rate tax payer then you'd be paying 40% tax and would, therefore, get less than £5 in your account. You'd only get around £3.75. As you aren't a higher rate tax payer, this won't affect you. You'll get £5 payment provided you fund the account with £1000 a month.

Mikeyorks

zedyy wrote: »

I'm only on a salary of £18K a year so im not paying higher tax, but can someone explain to me what that gobble-de-gook means in English?

The Reward payment is actually £6.25 per month. But they deduct the statutory level of 20% Savings tax from it ..... so you get £5 net / month.

• As you pay 20% tax .... that's it ..... end of story. You've paid the tax on the £6.25 by Halifax deducting it at source.
• If you weren't a taxpayer ..... you can re-claim the £15 (12 x £1.25) deducted ..... direct from HMRC after the year end via R40
• If you paid 40% ..... you have to declare the £75 gross interest to HMRC ... in order they can arrange (reduced coding or SA Return if you already file) to recover a further 20% over and above the £15 already deducted. Halifax don't deduct the additional 20%.

Pleased you asked?

littlemrtinkle

you can have three accounts per person

and three each with the BOS so six each

or 12 per couple, use the fast transfer online facility to move money between accounts in minutes. Free £60 a month or £720 a year.

aidso

MooFace wrote: »

just to clarify, the account has to be funded with a minimum of £1000 per calendar month (can be from more than one payment) and you then get £5 back every month.

Quick question. Does this mean you have to deposit £1000 per month so after a year you have £12,000, or does this mean each month when the interest is calculated you must have £1000 in your account - Effectively meaning deposit £1000 in month one, and then desposit no more for 11 months?

456789

you must deposit £1000 every month - you can take it out 5 minutes later if you want and be back to £0 balance

PinkPig

aidso wrote: »

Quick question. Does this mean you have to deposit £1000 per month so after a year you have £12,000, or does this mean each month when the interest is calculated you must have £1000 in your account - Effectively meaning deposit £1000 in month one, and then desposit no more for 11 months?

Neither of those! You have to deposit £1000 in each month, but how much money you have withdrawn is irrelevant. This is fundamentally supposed to be a current account - if you imagine the sort of use they expect from a current account, people will have their salary paid in, but most of the salary will be spent by the end of the month. As long as the sum of the deposits is at least £1000 you get the bonus. The actual balance at any time doesn't matter.

blueberrypie

PinkPig wrote: »

Neither of those! You have to deposit £1000 in each month

...to get the £5.

If you don't deposit £1000 in any calendar month, you won't get the £5 for that month, but nothing else will happen.

aidso

thats awesome!

MooFace

Mikeyorks wrote: »

The Reward payment is actually £6.25 per month. But they deduct the statutory level of 20% Savings tax from it ..... so you get £5 net / month.

• As you pay 20% tax .... that's it ..... end of story. You've paid the tax on the £6.25 by Halifax deducting it at source.
• If you weren't a taxpayer ..... you can re-claim the £15 (12 x £1.25) deducted ..... direct from HMRC after the year end via R40
• If you paid 40% ..... you have to declare the £75 gross interest to HMRC ... in order they can arrange (reduced coding or SA Return if you already file) to recover a further 20% over and above the £15 already deducted. Halifax don't deduct the additional 20%.

Pleased you asked?

They classify it as income as they have to due to tax laws but weirdly i don't think you are able to reclaim the 20% tax paid at source if you are a non-taxpayer. It's worth checking but i'm almost certain thats the case.

A higher rate tax payer would have to pay their additional tax thats due through their tax returns at year end.

aidso

Can someone who has the account just confirm that online it shows up as "Halifax Current Account" and doesnt mention Reward in the title? This will be when they login to view their balance etc