Halifax Regular Saver rate now 5% 17/07/09!

interest_Ted

To those of you (us) considering closing your 4% and opening a 5%....

Be Careful

It really depends on how long your 4% has been running and more importantly - what you intend to do when the account matures.

If you have not thought about what to do with your matured funds, then you do need to consider it. For example if you are 30 days into your 4% regualr saver, and saving at the max of £500 per month you ostensibly stand to gain, depending on timing, something like £25 (gross) by switching to a 5% account.

But the fact is that this will not materialise until 30 days after the date that the old 4% would have matured. So what would you have done with that money for those 30 days if you had stayed with the 4%.

Assuming you at that time have £6,000 then if you can get 6% (for example as the first month of a bond) on that for one month, you are actually £5 gross better off by doing nothing at the moment. Even at 5% you'd come out even.

I know - bird in hand and all that....but please don't just follow suit just cos 'everyone is doing it'.

I'm not saying dont change from 4% to 5%, but I am saying - consider what happens at the other end and do the figures first.


Ted

td_007

interest_Ted wrote: »

Assuming you at that time have £6,000 then if you can get 6% (for example as the first month of a bond) on that for one month, you are actually £5 gross better off by doing nothing at the moment. Even at 5% you'd come out even. Ted

I think you are making a good point but a have ignored an important factor - one will invest the extra money in hand. To explain, in your example if you have committed to a regular saver it means that you will have £500 ready at the beginning of each month to invest. Thus, in your example if one changes after 30 days, then one has £500 from this investment and another £500 ready to be invested i.e. £1000 in hand. If one invests £500 in the 5% reg saver and the other £500 in savings a/c @ 3% then this will give you £15 at end of 12 months. Thus you get £15 plus the interest from reg saver and are better off compared to the scenario you describe.

daleuk_3

I opened my account on the 16th...! but have yet to transfer.. will I get the 4% rate or should I get the 5%?

daleuk_3

I rang them and the lady said as I have a standing order set to transfer tomorrow.. it is too late to stop with the sending bank and to let it transfer.. once in the reg saver... call up and they will close that and open another one transfering the funds over :-)

Sam37

daleuk wrote: »

I rang them and the lady said as I have a standing order set to transfer tomorrow.. it is too late to stop with the sending bank and to let it transfer.. once in the reg saver... call up and they will close that and open another one transfering the funds over :-)

''Interest rates are fixed for 12 months on the day we receive your opening deposit'' Page 3 of the account features leaflet.
As long as the first deposit of the account is on or after 17 July you should receive 5%.

I was also advised this by the employee I spoke to (as I closed old account, and opened new one on the 16 July, paid in on 17th).

daleuk_3

Sam37 wrote: »

''Interest rates are fixed for 12 months on the day we receive your opening deposit'' Page 3 of the account features leaflet.
As long as the first deposit of the account is on or after 17 July you should receive 5%.

I was also advised this by the employee I spoke to (as I closed old account, and opened new one on the 16 July, paid in on 17th).

Excellent news! thankyou. Hopefully the term in the conditions is an actual process and doesnt require me chasing 1%!

Thanks!

AniaS

I have opened Halifax Regular Saver account in February 09.
When I log in online it does not show the interest rate. I have found a letter from Halifax which confirms opening the account – the rate is not stated there either. On their webpage I can not find previous rate for this account.

Where can I find previous rates for Halifax Regular Saver?

christinejp

AniaS, you are right, there is absolutely no way of finding out previous rates for this account. I opened my regular saver in Jan 09, and I know for a fact the rate was 5% at the time. It subsequently dropped to 4%, and is now back up to 5%.

Why on earth don't they put the rate at the top of the account when you view it online? They do with most other accounts, and why is it not in the list of previous interest rates?

Infuriating! I will certainly be checking my interest very carefully when the account matures.

exel1966

Planning on opening one towards the latter part of August. Does anyone know if the 1st deposit has to be made by S/O or can it be via transfer from another Halifax account or BACS/FP from an external a/c ? This info doesn't seem to be availbale online or if it is I can't find it !

Thanks.

apt

Officially by S/O - 'Each deposit must be a regular monthly

payment by standing order of at least £25. The maximum monthly deposit is £500.' But in practice they are probably not so strict. S/Os from Halifax savings accounts are not allowed, but no problem with S/Os from Halifax current accounts.