HALIFAX 10 % Regular Saver

johnnydawson

Dear all,
I opened a Halifax regular saver last August offering 10% interest. This relied on me paying in regular amounts each month and not taking the money out until the anniversary.

The account matured in August 09 and interest was added. However, the interest added was approx two thirds of what I would have expected. I ragng Halifax to query this and the person I spoke with agreed it did not look right and said they would correct it. However, I then reeived a letter from Halifax stating how interest was calculated and that I should let themn have my calculations so they could investigate further. I rang again and requested that they send me a statement showing how they had calculated the interest, which they said they would send out. However, instead I received another letter asking me to provide them with my calculations. Once again I rang and this time managed to speak with someone who worked it out over the phone and agreed that I was right and agreed to pay me the balance I was owed.

Surely these are computer based systems and should not make such mistakes. The fact that my interest was wrong would lead me to wonder whether all of these accounts were calculated incorrectly.

Meadows

johnnydawson wrote: »

Dear all,
I opened a Halifax regular saver last August offering 10% interest. This relied on me paying in regular amounts each month and not taking the money out until the anniversary.
The account matured in August 09 and interest was added. However, the interest added was approx two thirds of what I would have expected. I ragng Halifax to query this and the person I spoke with agreed it did not look right and said they would correct it. However, I then reeived a letter from Halifax stating how interest was calculated and that I should let themn have my calculations so they could investigate further. I rang again and requested that they send me a statement showing how they had calculated the interest, which they said they would send out. However, instead I received another letter asking me to provide them with my calculations. Once again I rang and this time managed to speak with someone who worked it out over the phone and agreed that I was right and agreed to pay me the balance I was owed.
Surely these are computer based systems and should not make such mistakes. The fact that my interest was wrong would lead me to wonder whether all of these accounts were calculated incorrectly.

I had a 10% account which ended in July, my interest was correct, have you used the site calculator to check what you should have received.
http://www.moneysavingexpert.com/savings/best-regular-savings-accounts#calculator
Calculator: How much will you earn?

opinions4u

johnnydawson wrote: »

I opened a Halifax regular saver last August offering 10% interest. This relied on me paying in regular amounts each month and not taking the money out until the anniversary.

From memory, the 10% offer expired on 21st July, at which point the rate dropped to 7%.

If you opened before 21st July 2008 but funded the account for the first time after this date you'd have earned the 7% rate.

Surely these are computer based systems and should not make such mistakes. The fact that my interest was wrong would lead me to wonder whether all of these accounts were calculated incorrectly.

I think my answer above explains that the computer is fairly accurate.

ctdctd

johnnydawson wrote: »

Surely these are computer based systems and should not make such mistakes. The fact that my interest was wrong would lead me to wonder whether all of these accounts were calculated incorrectly.

What did you pay in each month and are you a taxpayer?
If you let us know, we can work out what it should have been.

Rough estimate if monthly payments equal and you are a tax payer is:-
Sum invested x 0.1 x 0.8 x 6.5/12

Edit - just seen Opinions4u's post - replace 0.1 by 0.07 if 7%!

johnnydawson

Thanks for the replies.
My point is that the Halifax agree with me now, and agree tha their initial calcs were wrong. I also do not see why they could not have provided a printed statement showing how they had calculated the interest.

Paul_Herring

Thanks for the replies.

We, like Halifax it would appear, are waiting for your calculations/working out.

My point is that the Halifax agree with me now,

Just because someone at Halifax might think there might be a problem, doesn't mean there actually is one.

After all, if you think Halifax 'get things wrong,' what makes you think that (apart from the fact it conveniently matches your expectations) this one person is correct?

flyingscotno1

The OP has done calculations which suggest he has done it correctly, but whenever I hear regular saver and 'interest credited too low' I always thing of the old nutshell we get final balance multiplied by 10% instead of monthly payments. What are your rough calculations?

That's one reason I like Barclays for applying it monthly!

Paul_Herring

The OP has done calculations which suggest he has done it correctly,

It suggests nothing of the kind, for the exact reasons you state.

Which is why we are asking to look at them.

opinions4u

johnnydawson wrote: »

Thanks for the replies.
My point is that the Halifax agree with me now, and agree tha their initial calcs were wrong. I also do not see why they could not have provided a printed statement showing how they had calculated the interest.

Are they saying that you should have qualified for a 10% rate, even though the rate was only 7% in August last year (for part of August they had an offer that said if you deposited £10k in the nominated account and left it there for the full year the rate paid would be 10%, but every other account credited for the first time last August will only have received 7%).

Have they confirmed that you should be receiving 10%?

johnnydawson wrote: »

I also do not see why they could not have provided a printed statement showing how they had calculated the interest.

Because the staff you spoke to probably didn't know how to!

rb10

johnnydawson, could you please post:

1) the dates that money arrived in the account, and the amounts you paid in (taken from your RS statement)
2) whether your nominated account (the one that the RS money was transferred into at the end of the year) had at least £10k in for the whole year
3) The amount of interest you actually received at the end of the year, and whether this was net or gross of tax.

People on here will then be able to back up your calculations. There are a lot of people who come on here claiming to have been 'conned' when they actually simply don't understand the way that interest is calculated on these accounts, so naturally some are sceptical of your claim.

ray123

Unfortunately, I feel that you have been misinformed by customer services (the same thing has happened to me in the past).

Opinions4u is correct, the rate changed from 10% to 7% from 21 July.

For example:
I had an account in June paying 10% and received £267.95 (net interest at 20% tax).
OH opened a/c on 28 July at 7% and received £188.70 (net interest at 20% tax).

Please let me know if you receive the interest at 10%...

Good luck