Halifax Regular Saver 12 or 13 payments?

anticlaus105

I opened this towards the end of July 08. My 1st payment was near the end of July. I then switched the payments to the 1st of the month.

If it matures near the end of July 09 this means I could make another payment in July thus in total make 13 payments.

This has been ok with some regular savers I have had in the past. Is it allowed for this one?

opinions4u

Yes. 12 or 13 is fine, as long as you don't exceed £500 in any month.

oldfella

all the money is moved into another account, so if you intend to continue into the second year you would loose out over the 2 years. Best to delay the 13th payment until after the start of the 2nd year.

anticlaus105

oldfella wrote: »

all the money is moved into another account, so if you intend to continue into the second year you would loose out over the 2 years. Best to delay the 13th payment until after the start of the 2nd year.

Does this account role over into a new regular saver? If so at what rate?

I thought it just ended and the balance was transfered to the linked account.

Mikeyorks

You won't know the rate until closer to July (it will start over - if you keep paying)

BUT ..... you certainly won't get 10%. So ...... make the 13th payment as, with the anniversary date late in July, you will be getting 10% (or 12%?) for most of the month.

If you do decide to continue into a 2nd year ... 1st payment is 1st August .... and you're then into a straight forward 12 payments for the second year. But maximise the payments in this first year ..... 10% is not to be sneezed at.

LesU

anticlaus105 wrote: »

I opened this towards the end of July 08. My 1st payment was near the end of July. I then switched the payments to the 1st of the month.

If it matures near the end of July 09 this means I could make another payment in July thus in total make 13 payments.

This has been ok with some regular savers I have had in the past. Is it allowed for this one?

Why make a 13th payment in July? You would only be earning interest on that £500 for 2 or 3 weeks before it is moved to another account. If that £500 is delayed until the start of the next year, then you will earn interest on that £500 for 12 months. OK the interest rate may not be great next year, but if that is the case, why bother continuing?

apt

Better to have the interest at 10%/12% for 2 or 3 weeks than 4% for two or three days. If you have made 13 payments and want to continue with a Halifax regular saver despite the much reduced rate you could always close your existing account and open a new one. Takes about 5 minutes.

anticlaus105

I decided to have a little hunt for the leaflet I had when I opened the account. The leaflet clearly states:

"Then save regularly from £25 to £500 each month for 12 months by standing order from your current account".

It does say that after one year the funds are swept into your nominated account and the regular saver remains open for another year at a fixed interest rate.

Would this mean payment 13 made before the anniversary would get swept out or would they keep it in and count this as the start of the following year?

I am thinking payment 13 may proove to be an unlucky one.

alared

DAK what the interest would be on £500 a month for the full term (£6000)

oldfella

DAK what the interest would be on £500 a month for the full term (£6000)

---

depends when you invest each month - if its the 1st its around £130 gross

if you delay the first payment to the 20th, then the rest on the 1st, its about £143

rb10

A 13th payment is definitely allowed, and will be added to the balance, and then transferred along with the rest of the payments and interest to the nominated account on the anniversary of opening.

If you are not going to continue the Regular Saver for another year, then definitely make a 13th payment.

If you are going to continue, then it depends on the rate they are giving at the time.

alared wrote: »

DAK what the interest would be on £500 a month for the full term (£6000)

Depends what rate you are getting. To work it out, do 500 * 6.5 * [interest rate], e.g. at the moment it's 4%, so it would be 500*6.5*0.04.