Warning? Halixfax 10% saving rate

StoozingSteve

Hello All, not sure if this is a warning or not, but I opened a 10% regular saver account around this time last year, it has now matured But I did not receive the amount of interest i thought I was going to.

I opened it with £175, then saved the full £500 each month, I caculated the interest to be around £345 but only received £232, when queried this, they confirmed the rate was 10% but the difference was due to daily calculation. they also addmitted that it had been calculated wrong and should be £248.

any thoughts, are they trying to rip me off? anyone else notice this?

Thanks

Steve_xx

StoozingSteve wrote: »

Hello All, not sure if this is a warning or not, but I opened a 10% regular saver account around this time last year, it has now matured But I did not receive the amount of interest i thought I was going to.

I opened it with £175, then saved the full £500 each month, I caculated the interest to be around £345 but only received £232, when queried this, they confirmed the rate was 10% but the difference was due to daily calculation. they also addmitted that it had been calculated wrong and should be £248.

any thoughts, are they trying to rip me off? anyone else notice this?

Thanks

A lot will depend on what day you put each payment into the account. The link to this ready reckoner suggests that you would earn £267.45 in interest, bearing in mind that in the first month you paid just £175 into the account and of course you would normally receive that nett of tax @ 20% which would leave you with £213.96 approximately.

Link: http://www.e-gismos.com/savings.asp

G_M

Not sure how you've calculated your £345, but a lot will depend on your contributions: £175 + £500 x 11? or x 12?

And when did you make each monthly contribution? 1st of the month? Last day of the month? Because you only earn interest on that contribution (daily) from the date you make it. So your £175 should earn 10% over the year, but the 1st £500 contribution will earn interest for (about) 11 months, and the next contribution will only earn interest for (about) 10 months.....

mad01

Hi

My daughter took out a halifax Guaranteed Saver on 16 July last year. I Loaned her £5K so that she would benefit from the 12% interest they advertised.

She has saved every month and made no withdrawals ............. we checked today and they have credited 3% interest!!!!!!!!

On our way to sort this out face to face (hopefully). Am disgusted AND have discovered that they failed to let us know about better ISA rates last year when we were doing the review.

I am sure we are not alone so be warned.

M

nicko33

Steve_xx wrote: »

Link: http://www.e-gismos.com/savings.asp

I'm not sure the calculator at that link is correct
either that or I don't understand how it works

it seems quite a way off the MSE calculator
www.moneysavingexpert.com/savings/best-regular-savings-accounts#calculator

That said, the MSE calc seems a tiny bit on the high side for interest after tax.
e.g. for 12 * £500 @ 10%
Gross 320.27
Basic 256.94 (= 320.27 * 0.802261)
Higher 193.26 (= 320.27 * 0.603428)


edit:
the most interest I can get for 175 + (11*500) is about 333 gross, 266 at Basic rate
assuming you got the 175 in on the last day of a month, and all the 500s on the 1st of the month

gozomark

OP - is the amount net or gross of tax ?

nzseries1

nicko33 wrote: »

That said, the MSE calc seems a tiny bit on the high side for interest after tax.
...
Basic 256.94 (= 320.27 * 0.802261)

When my 10% Regular Saver matured I got £265 after tax. I'd have to agree with the MSE calc.
I put in 12 payments of £500, all on the first of the month except for the first one on the 17th of the month.

LongTermLurker

mad01 wrote: »

Hi

My daughter took out a halifax Guaranteed Saver on 16 July last year. I Loaned her £5K so that she would benefit from the 12% interest they advertised.

She has saved every month and made no withdrawals ............. we checked today and they have credited 3% interest!!!!!!!!

On our way to sort this out face to face (hopefully). Am disgusted AND have discovered that they failed to let us know about better ISA rates last year when we were doing the review.

I am sure we are not alone so be warned.

M

Please read other threads on the subject. I think you have assumed they pay interest on money you have yet to deposit...

In other words, you can only have had a maximum of £500 deposited for a year - all subsequent deposits were for (progressively) less than a year.

StoozingSteve

Hi All,
Thanks for your responses, I have now re-calulated it, and I now get approx £234 using exact dates and links provided.

many thanks for helping me clear this up.