New Halifax Cashback Debit Card launches Feb

Paul_Varjak

I have both a Halifax debit card (which currently gives no cashback) and a Halifax credit card which, I think currently, gives 0.25% cashback.

So, on the face of it, I should get one of the new Halifax cashback cards (if it is available to existing customers) and use it instead of my credit card.

But with my credit card I also get the protection of that wonderful S.75 of the Consumer Credit Act if my purchase is over £100. I don't get that with a debit card (unless, of course, the new Halifax debit card is actually a VISA debit card - VISA do offer protection similar to S.75 in their terms and conditions but I guess it may be harder to enforce than an Act of Parliament!)

But even if it were a VISA debit card, my Halifax Current account pays 3% interest, so why not leave the money there earning 3% for a few weeks (before my credit card bill is paid) rather than pay for purchases immediately!

Of course, some outlets (e.g. ALDI & LIDL) only accept debit cards, so it may be useful there. And some people may not be able to get a credit card anyway so it could be useful to them, providing of course such people can even get a bank account!

There are BASIC Bank Accounts that the big banks have to provide but I bet if Halifax have a BASIC Bank Account available for those on low incomes or poor credit history I bet the cashback card will not be available to them!

By the way, I did listen to the Working Lunch programme about VISA debit cards and what the HBOS Press Officer says appears correct to me

TREVORCOLMAN

On Martin's first post on this subject he quoted that the A&L Premier Account requires £1000 per month salary paid in. Their bumpf actually says £1000 funding, it does not mention salary. Can anyone clarify?

It makes a difference because you could just move £1k in each month, use the overdraft facility, which they give you at 0% interest for a year, and pay the £1k back out to say a savings account.

You could then use the freebies on this account - such as the annual worldwide travel insurance.

student100

celt wrote:

Good question, I would guess it would be 80p As I am sure the banks only see supermarket as a payment.

I would be interested in hearing the answer.

Celt

I think there is a distinction between Payment and Cashback as regards to supermarket transactions. Back in the days when I had a NatWest account, the statement would show two lines; one for the card payment and one for the cashback. So I guess you'd only get cashback (in the other sense) from the Halifax on the actual payment.

Paul_Varjak

TREVORCOLMAN wrote:

On Martin's first post on this subject he quoted that the A&L Premier Account requires £1000 per month salary paid in. Their bumpf actually says £1000 funding, it does not mention salary. Can anyone clarify?

It makes a difference because you could just move £1k in each month, use the overdraft facility, which they give you at 0% interest for a year, and pay the £1k back out to say a savings account.

You could then use the freebies on this account - such as the annual worldwide travel insurance.

I believe that A&L have T&C's preventing you from benfitting from the higher interest rate by moving money from one account to another. Halifax (who I bank with) do not have such rules.

grumbler

Paul_Varjak wrote:

...my Halifax Current account pays 3% interest, so why not leave the money there earning 3% for a few weeks (before my credit card bill is paid) rather than pay for purchases immediately!

You must leave the money for at least 5 months (for taxpayer) on your 3% current account to earn equivalent of 1% cashback.

TREVORCOLMAN wrote:

... the A&L Premier Account requires £1000 per month salary paid in. Their bumpf actually says £1000 funding, it does not mention salary. Can anyone clarify?

It makes a difference because you could just move £1k in each month, use the overdraft facility, which they give you at 0% interest for a year, and pay the £1k back out to say a savings account.

You could then use the freebies on this account - such as the annual worldwide travel insurance.

I do not pay my salary into A&L Premier Account. Just transfer £1000 monthly from other bank. I do not use overdraft, but have the high interest rate and the annual worldwide travel insurance.

Paul_Varjak

grumbler wrote:

You must leave the money for at least 5 months (for taxpayer) on your 3% current account to earn equivalent of 1% cashback.

Oh dear, silly Me!

TREVORCOLMAN

So does that mean that the £1k funding each month does not have to be salary?

student100

grumbler wrote:

You must leave the money for at least 5 months (for taxpayer) on your 3% current account to earn equivalent of 1% cashback.

Yes, but that's missing the point. If you spend on a Credit Card with 1% cashback, AND keep the money in a current account earning 3% interest for on average a month before paying off the CC, you will still be better off.

Paul_Varjak

student100 wrote:

Yes, but that's missing the point. If you spend on a Credit Card with 1% cashback, AND keep the money in a current account earning 3% interest for on average a month before paying off the CC, you will still be better off.

Although I also agree with your point, Grumbler was also right in correcting my error - because I had made one!

Interestingly, the Halifax debit card actually pays more than its credit card, 1% compared to 0.25%!

grumbler

TREVORCOLMAN wrote:

So does that mean that the £1k funding each month does not have to be salary?

On the whole most of my money comes from salary. However, the salary is paid to the Barclays account. Then I transfer £1K monthly to A&L from Barclays or from other account. Once I made transfer too early and as a result £1K was credited to the A&L at the end of the previous month instead of the beginning of the new month as I intended. I was not sure what to do in such a situation. As I did not have another £1000 that time, just in case I moved £1K back from A&L and then transferred to A&L again.

This is just my experience. I am not aware about anything regarding salary in the A&L T&C. I beleive that if you manage to open this account you can maintain it even without any salary or income - just by moving money in a circle.