Halifax £5/month savings ??

ipri

Hi..can anyone put this account into % terms?..is it worth it??

Baldur

ipri wrote: »

Hi..can anyone put this account into % terms?..is it worth it??

To earn the £60 per annum after tax that the account offers, you'd need £1,500 in a taxable savings account earning an AER of 5%.

ipri

I'm sorry for an awful posting!...I'm refering to the "Reward" account...must put minimum of £1000/month .....recieve £5!..?? 1/2% interest...some reward?

Baldur

ipri wrote: »

I'm sorry for an awful posting!...I'm refering to the "Reward" account...must put minimum of £1000/month .....recieve £5!..?? 1/2% interest...some reward?

I was giving an example of the Reward account - you only need to pay the £1,000 in then straight back out, if you wish (you'd have to be daft to leave it there!). You would have to leave £1,500 in a 5% account for a whole year to earn an equivalent interest rate.

steveksullivan

As Baldur says, money does not have to stay in the account - mine is usually there for about two minutes...... after doing a faster payment into the account from LLoyds, just long enough to log back into Halifax and do a faster payment out again back to Lloyds leaving £1 in the Reward account!!

And although Baldurs comparison is the right one to make (i.e. how much would you have to invest and at what rate to earn £5 per month .....), the ACTUAL interest rate being earned on the Reward account is considerably higher, as I am getting £5/month for having just £1 in the account !!!

As the £5 is paid without deduction of tax, its actually worth £75 per year

.... and I stand to be corrected (and probably will be....) but I think my atrocious maths tells me thats 7,500% interest on £1 !!


(Can that really be right - someone correct me !!)

steveksullivan

Thats b$%£ered my percentage calculation in the above post ......

Halifax's faster payments system is down for the weekend for maintenance, so they have a whole £9.60 extra of my money until Monday!!!

Biggles

steveksullivan wrote: »

As Baldur says, money does not have to stay in the account - mine is usually there for about two minutes...... after doing a faster payment into the account from LLoyds, just long enough to log back into Halifax and do a faster payment out again back to Lloyds leaving £1 in the Reward account!

So is that using two £500 payments each way (don't Lloyds FPs only go up to £500?).

Baldur

Biggles wrote: »

So is that using two £500 payments each way (don't Lloyds FPs only go up to £500?).

See http://forums.moneysavingexpert.com/showthread.html?t=2003131

Biggles

Baldur wrote: »

See http://forums.moneysavingexpert.com/showthread.html?t=2003131

That's handy, Baldur. Hope it lasts this time!
;-)