Halifax Guarenteed 10% Savings Question

hushpuppy

matthew74 wrote: »

No I can assure you it is 10% !!

Matt,

Sorry I should have clarified my comment, yes I did get 10% minus 20% tax of my total investment, but I was expecting 10% of the £4k I invested for the reasons explained above.

hushpuppy

Thanks for your comments, but as to your crystal clarity, please show me on this link where it clearly explains the interest payments, other than to suggest it is paid annually?

http://www.halifax.co.uk/savings/regularsaver.asp

matthew74

'Save between £25 and £500 every month for 12 months by standing order and get a rate of 4.00% AER fixed for a year.'

I'm sorry but this says it all in my opinion.

Trying_to_be_good

You get the 10% annual interest on the amount in the account, proportionately through the one-year term - why would they be paying 10% annual interest on the amount in the account for only a month? Now that would be REALLY difficult to make clear to investors.

It IS a 10% annual rate, but you're only paid that on what's actually in the account, just like any other account where you transferred in a regular sum each month.

So, put simply, (if it's £250 per month, on the first of each month):
£250 * 10% * 12/12 (month one, in the account for 12 months)
£250 * 10% * 11/12 (month two, in the account for 11 months)
£250 * 10% * 10/12 (month three, in the account for 10 months) etc

YorkshireBoy

hushpuppy wrote: »

Thanks for your comments, but as to your crystal clarity, please show me on this link where it clearly explains the interest payments, other than to suggest it is paid annually?

http://www.halifax.co.uk/savings/regularsaver.asp

From your link...

"For example - save £500 every month and earn £129.53 gross (£103.63 net) interest after 12 months"

Now from this it's clear that you will not receive 4% (the current regular saver rate) on the entire £6,000 saved over the 12 month period because that would be £6,000 x 4% = £240 gross (£192 net).

Simple to understand now?

YorkshireBoy

hushpuppy wrote: »

...otherwise I wouldn't have tried to put in as much as I could afford every month, if I had known that the interest wasn't applied to the total amount at the end of the year.

And where else would you have saved it instead? In an account earning 4%/365 per day perhaps?

That would be pretty silly when you could have been earning 10%/365 per day - that's 2 and a half times the interest you could have got elsewhere - at Halifax now wouldn't it?

jem16

hushpuppy wrote: »

but I was expecting 10% of the £4k I invested for the reasons explained above.

The £4,000 was not in the account for a whole year so why would you expect to get the full annual 10% rate for the full £4,000?

You have only had approx £333 in for a full year.

hushpuppy

Dear YorkshireBoy and Trying to be Good, thanks to both of you for clarifying mine and all the other investors stupidity for not clearly understanding this product, where on earth would the banks be without us?

masonic

hushpuppy wrote: »

Thanks for your comments, but as to your crystal clarity, please show me on this link where it clearly explains the interest payments, other than to suggest it is paid annually?

http://www.halifax.co.uk/savings/regularsaver.asp

No bank account clearly explains interest payments, since they are essentially the same everywhere. They don't explain it clearly here either, but I'd wager you wouldn't be confused about what you'd be paid in interest after contributing £250 per month to that account.

I don't understand why people think there is something special about regular savings accounts.

Lokolo

Its the same concept as people think that if they deposit £5,000 the day before interest is due, that they will get x% on the whole £5,000 even though its only been in there a day.