Halifax/ Bank of Scotland: a guide to account changes.

jambosans

BBurkill wrote: »

If I am in credit with them for the majority of the month, why should I be obliged to pay for that privilege. I am going to complain and then switch my bank, having been with them for 35 years. I personally think this is a disgusting ploy.

You are paying for the use of the overdraft, although I think I get your point (however irrelevant). Complaining isn't going to effect a policy change, but moving will have a bigger impact - you just have to pay off your overdrafts first. Although, if you pay off your overdrafts, you are potentially £5 better off with the Reward Current Account .

BBurkill wrote: »

I predicted that the Halifax would go downhill when they got bought by LLoyds, and in my opinion, I was proved right.,

This would have been in the works long before Lloyds TSB took over, for a number of reasons. Firstly the Reward Current Account was launched in February, one month after the takeover was finalised. These kinds of changes cannot be implemented in a month, the Reward Current Account simply "tested the water". Secondly, Lloyds TSB have not changed their product line. If, eventually, the brands unite, under a unified product range, LTSB or HBOS will make further changes.

BBurkill wrote: »

Can anyone tell me the BEST overall bank for a part time overdrafteee

Who is to say other banks will not implement similar changes? The reality is, Halifax Bank of Scotland have reacted (although they will not admit) to the likely defeat in the Supreme Court and subsequent (very likely) assessment by the O.F.T. that charges are unfair. Even though these charges will be subject to the same scrutiny, they have been lowered, and they are more clear cut. Cross-subsidy of banking is something I believe is a reality, those who borrow have to pay. Historically, those who borrowed without the prior consent of the banks, were charged more (the main subsidiser). Now, with these changes, unarranged charges are reduced, and for some, arranged charges are increased (switching subsidy roles). They are a business, and lending is a big revenue stream, it also helps with the costs of a "free in credit" model.

lemonjelly

noh wrote: »

The current rules allow a maximum of 3 Reward accounts.
The T+C's dated 1st November allow 1 sole and one joint.

On 6th December the HICA will become a standard current account.

I too have 3 reward and 1 HICA.

Here is a previous post by rb10 offering a suggestion of what to do in this situation.

Thanks for this - very helpful.

jambosans wrote: »

Sorry about that. I stand corrected, I only have a humble one Reward Current Account.

No worries! Perhaps I wasn't clear.

I'm thinking of applying for an account elsewhere, perhaps with the £100 & free switching service or something.
Problem is the number of SO's/DD's I have coming from the HICA.

I'll have a mull, I've got a couple of months

Treefrog

As a non tax payer I recieve my inbterest gross however these Reward accounts will only pay net and then it is up to the individual to reclaim the tax back from HM Revenue & Customs ("HMRC"). I feel that this is wrong on two counts
1. It may only be a £1 per month but that extra makes a difference when you are on a low income.
2. This will make extra work for HMRC and will cost the tac payers more.
Can Halifax be made or shamed to change the way they pay their reward so that Rewards are paid gross?

Lady_K

Am I worrying for no reason? Is it as simple as this link appears?

http://www.halifax.co.uk/bankaccounts/bankaccountsweoffer.asp

Is this right?

If I keep my current account it looks from the above that it will be classed as a Reward current account if I fund it with over £1000 in a month. If I do I get £5 credit from halifax.
(Does this mean the balance has to remain at £1000 or above though and does it include transfers from anywhere including own bank accounts)

OR
If it falls below £1000 funded in a month nothing happens apart from I lose out on the £5 credit from halifax in that particular month

PLUS
Daughter has over £1000 funded to her presently standard current account each month but was told she will automatically be changed to the £12 a month one in Dec is this right and if not would she be better off changing to that one anyway? She also has a second current account with Halifax that is only funded by transfers how will she stand with that?

It looks like they don't give £5 back to the £12 a month account from the above link but this has been said otherwise somewhere else on this forum stating that you only end up paying £7.00 a month in the end

opinions4u

Treefrog wrote: »

Can Halifax be made or shamed to change the way they pay their reward so that Rewards are paid gross?

It is the Halifax who are complying with HMRC rules.

It's HMRC who need to change, not the bank.

Lady_K

Hope I have done the right thing but I rang Halifax and asked them to confirm a few of the questions I asked above and after doing so have requested to be changed over to the Reward Current account now rather than wait until December.

It seems that all the difference will be is I will get the £5 credit a month from Halifax, no other changes. I don't have any overdrafts anyway and don't want any so I thought whats the point waiting till December.

She did say if I had not put in a request to change it I would just stay on the Standard current account without the £5 credit.

She said anyone can request to change at any time from now and after December to any of the accounts and I can move back if I want to.

She also confirmed that if I fall below £1000 a month all that will happen is that I won't get the £5 credit

She also said that it can be funding from anywhere including transfers between accounts

I hope there are no catches

Pity my other account is a cardcash one that they have never allowed me to upgrade because it does not have any wages paid into it each month even though I have always had money it in. I might try again to swap it over, my daughter has 2 accounts both current so I don't know why mine has to remain as cardcash.

opinions4u

Lady_K wrote: »

I hope there are no catches

The catch is in the overdraft charging.

As this doesn't affect you, enjoy the fiver!

A bottle of wine on payday perhaps?

jambosans

Lady_K wrote: »

She said anyone can request to change at any time from now and after December to any of the accounts and I can move back if I want to.

You cannot go back to the High Interest Current Account. This is account is no longer available to existing or new custom. As the guide explained, it is being completely re-branded to the Standard Current Account from 06/12/09. So as it stands, you cannot downgrade to anything (as the Reward Current Account is the only free current account HBOS offer), and as of 06/12/09, you can downgrade to the Standard Current Account (although I don't know why you would?).

Lady_K wrote: »

She also confirmed that if I fall below £1000 a month all that will happen is that I won't get the £5 credit

She also said that it can be funding from anywhere including transfers between accounts

I hope there are no catches

If you don't have or use an overdraft, then the Reward Current Account makes complete sense. Everything else you have stated is covered in the guide. Perhaps I should have made it more clear that the Reward Current Account has had these changes in place since launch in February.

Lady_K wrote: »

Pity my other account is a cardcash one that they have never allowed me to upgrade because it does not have any wages paid into it each month even though I have always had money it in. I might try again to swap it over, my daughter has 2 accounts both current so I don't know why mine has to remain as cardcash.

The Cardcash account is a basic bank account, therefore it is not designed to have an overdraft/ credit facilities. So you cannot simply upgrade, you have to apply for a full current account (as of December this will be either the Standard Current Account, Reward Current Account or Ultimate Reward Current Account). From 01/11/09 you will only be able to have one sole and one joint Reward Current Account. Unless you open an account now, come November (unless you open a joint), you will not be able to open another Reward Current Account.

jambosans

Treefrog wrote: »

As a non tax payer I recieve my inbterest gross however these Reward accounts will only pay net and then it is up to the individual to reclaim the tax back from HM Revenue & Customs ("HMRC"). I feel that this is wrong on two counts
1. It may only be a £1 per month but that extra makes a difference when you are on a low income.

It is actually £1.25 extra.

Treefrog wrote: »

2. This will make extra work for HMRC and will cost the tac payers more.
Can Halifax be made or shamed to change the way they pay their reward so that Rewards are paid gross?

I would have thought you could receive the payment gross by filling out an R85 (link to HMRC) and provide it to Halifax. However the Reward payment is technically not interest as it is not calculated against a percentage of a credit balance. They are merely providing an incentive for funding £1000 or more into the account each month. So in all honesty, I'm not sure.

Halifax do suggest, as opinions4u has stated, you must claim back from HMRC:-

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. To find out more visit www.hmrc.gov.uk/incometax.

Lady_K

Thankyou, I rang them back and they have now opened me a second reward bank account in addition to the cardcash account that I have as she said she couldnt upgrade it. so I will gradually migrate everthing from the cardcash to the new reward account one thats up and running. She tried to get me to have a credit card at the same time but I said I would think about it