Halifax Regular Saver - 13 payments in year?

Mikeyorks

Set up one of these, by transfer, 31st March last year.

Then set up SO from my current a/c for 20th (T&Cs require pyt each month and by 28th) of April et seq.

Realised, at the time, that would create 13 payments in the year to 31st Mar 06 - when the account would be 'swept'. But struck me that could hardly be novel - as anyone else would have the same if they initiated the account between 28th - 31st of the month.

But decided to ring Halifax before the 13th payment went in 'just in case' (I'm beginning to worry that's the start of an 'age thing'?). Quite unequivocal response to the effect of 'no problem - our software only sweeps out 12 payments - and will leave the 13th. I've got one with the same issue - and it did that to mine'. So no problem there then?

The account was swept clear last night - all 13 payments of it !!!!

So - is it different software for staff accounts? Or do I list this on the growing file of 'Naff advice received from Call Centres'?

But - at least next years will only have 12 payments in it. And yes - the 13th payment did attract a modicum of interest - despite its short shelf life!

Milarky

This scenario is discussed pretty thoroughly in this thread (started last year as the first annual accounts were due to mature):

http://forums.moneysavingexpert.com/showthread.html?t=44533&page=1&pp=10

The problem with a thirteenth payment (as you have found out) is that it also gets swept out of the account. Money paid in during a particular calendar month and then swept out cannot be replaced in that month under the rules set by Halifax. You may then be left with only 11 monthly payments and would lose interest of 7% gross on one month's amount (as much as £17.50)

This is also a potential problem whenever the SO is set up any 'earlier' in the month (e.g. in my case SO for the 1st but maturity is the 6th) than the maturity date - which is also fixed on the anniversary of the orginal opening payment (in my case 6th May 2004). What you should do is always have the SO one day later than this fixed anniversary date and there will always be 12 (and only 12) monthly payments going in between anniversaries.

Your particular problem is that your fixed year runs between 1st April and 31st March. This suggest that if you set your SO to the 1st of each month you will meet the all the conditions whilst also maximizing the average balance in the account.

For someone in my position the advice is also clear: amend the SO date after the 11th monthly payment (in my case the one on the 1st April) so that the next 'regular' payment transfers only after the account matures (in my case the 6th). I will therefore be amending these dates from the '1st' to the '7th' as of tomorrow [Thanks for the reminder to do that!]

Mikeyorks

Honest - I did a Search on the forum, under the impression this must have been discussed? As I tend to work on the principle that 'if its an item - it's listed on Ebay' and 'if it's a thought - it's listed on MSE'!

Got lots of hits - clearly too many, and didn't go back far enough.

Thanks