Halifax Reward Current Account - pays you £5 per month.

jonnyb

MrTomato wrote: »

If you're leaving the £1000 in the account its the same as a 6% interest rate. I think.

If you put £1000 in, and move £999.99 straight out, and get £5 that's the same as 600,000%, I think.

rb10

MrTomato wrote: »

If you're leaving the £1000 in the account its the same as a 6% interest rate. I think.

The rate is 6% net, so that's 7.5% gross. As the balance in the account will change many times over the month, being a current account, this rate holds if the average balance is £1000. If you have a lower average balance, the 'rate' is higher, and vice-versa.

Mumolulu

td_007 wrote: »

Better late than never This has been available for sometime now.

Go on open max 3 a/cs allowed, bounce £1000 through each of them (can be from hfx itself) and make £15 per month:beer:

:rotfl:

I know, I thought it had! Surely opening 3 accounts and shifting it all would be confusing?!!!!

td_007

Mumolulu wrote: »

:rotfl:

I know, I thought it had! Surely opening 3 accounts and shifting it all would be confusing?!!!!

Not at all. Set up internal standing orders in sequence (I leave the amount in overnight- though it does not seem to be necessary)
for eg. day1: a/c1 to a/c2,
day2: a/c2 to a/c3
day 3: from a/c3 to where ever you want it to rest.

noh

Joe_Bloggs wrote: »

I had a few problems because my initial deposit was made from BACS credits from other Banks. When this failed I tried to put in the minimum £100 for a debit card from funds held with the Halifax. All attempts failed because of an unpublished rule that deposits should be made in person or by cheque/cash to a branch. I broke the rule in using standing orders, trying to fund the account that I was given. Eventually I made my deposit in cash. This kick started things and all has gone well. I even got my suspended BACS transfers into my new Halifax account.
J_B. (Hooray for Halifax !)

There is no such rule. Don't know why your BACS or internal payments failed.
I funded my 3 Reward accounts initially via a BACS payment into one of them and then transferring >£100 from that into the others in turn.

jennifernil

td_007 wrote: »

Not at all. Set up internal standing orders in sequence (I leave the amount in overnight- though it does not seem to be necessary)
for eg. day1: a/c1 to a/c2,
day2: a/c2 to a/c3
day 3: from a/c3 to where ever you want it to rest.

We do similar, once set up you just sit back and wait for the Reward money.

We have £1000 circulating through 6 accounts and back to a savings account for the rest of the month, so it earns £360 per year, plus a pittance from the savings account.

Incidentally, although called a Reward, is the £5 regarded as interest by HMRC?
If so is it net interest?
As a non taxpayer can I reclaim the £1.25 tax that has been deducted?
As a higher rate taxpayer does my husband need to declare it and pay another 20% tax on it?

YorkshireBoy

jennifernil wrote: »

Incidentally, although called a Reward, is the £5 regarded as interest by HMRC?
If so is it net interest?
As a non taxpayer can I reclaim the £1.25 tax that has been deducted?
As a higher rate taxpayer does my husband need to declare it and pay another 20% tax on it?

http://www.halifax.co.uk/bankaccounts/reward-current-account.asp

Answered at the foot of the page.

td_007

jennifernil wrote: »

Incidentally, although called a Reward, is the £5 regarded as interest by HMRC?
If so is it net interest?
As a non taxpayer can I reclaim the £1.25 tax that has been deducted?
As a higher rate taxpayer does my husband need to declare it and pay another 20% tax on it?

It is net interest - see here under "important note" http://www.halifax.co.uk/bankaccounts/reward-current-account.asp

A direct quote "This payment is 'net' of income tax. This means we pay it after taking off income tax at the rate set by law (currently 20%). If you are a higher-rate taxpayer, you may have to pay extra income tax on the reward payment. The gross amount is £6.25. This is the amount before we take off income tax. You may reclaim tax from HM Revenue & Customs if the amount of tax we have taken off is more than you have to pay."

So as non-tax payer you can reclaim & as a higher rate tax payer your husband has to pay additional 20%.

td_007

cross-post - YB you got quick fingers

jennifernil

I obviously gave up before reaching the bottom of the page! Either that or the print was too small to read.

Many thanks.