Halifax Children's Regular Saver

Scaredy_Cat_3

I wonder if anyone can advise me over this one please? I started this account for my children in April 2009 with an 8% interest rate. After a year the account matures and all the funds are transferred to a low rate account (so obviously now I'm looking for somewhere else to put the money - it's not much but I want the best rate I can get).

Anyway, that's not my question (although I'd appreciate suggestions)...

The question is about what happens to the Regular Saver account after maturity. I had originally believed it would be closed, but my local branch said they thought it would continue and although all the money saved last year would be moved into a low rate account, there's nothing to stop me continuing to save each month in the Regular Saver, and still get the same rate (ie the 8%). This sounds too good to be true. I have written to the Halifax so I can get it confirmed in writing but so far they haven't replied so I thought I'd ask here in case anyone else has experience of this please?

CLAPTON

I've no experience of the children's regular saver but their other regular savers do allow you to continue saving after teh year (from scratch ) at whatever the current rate is i.e. it would be 6% now and not your original 8%.

Scaredy_Cat_3

That's interesting - thanks.

Why do you say it should be 6% though? The branch seemed to think it would be at whatever rate I had signed up to - the rate did fall to 6% shortly AFTER I started the account and I had a bit of an argument with Halifax over what rate I would get last year, but they did finally agree I was entitled to the 8%.

rb10

It might be worth re-reading your T&Cs (the third bullet point of page 32, in particular).

opinions4u

Scaredy_Cat wrote: »

Why do you say it should be 6% though?

Because when it matures and the funds are swept in to the Save4it account, the new Kids Regular Saver earns the rate in place for the account at that point in time. Clearly marked on their web site as 6%. rb10's likkle linky will also help.

The branch seemed to think it would be at whatever rate I had signed up to

To be honest, that is really poor from a branch that probably opens a dozen or so of these accounts every month.

By the way, if your matured funds exceed £500 then you might want to consider Halifax Guaranteed Reserve if you're prepared to tie the money of for a year or two and want to remain trustee.

Alternatively, somebody on these boards has been mentioning Northern Rock having a kids account paying 3%. I've not checked it out myself, but it might do the job for you.

mikey72

Our kids have these, on the anniversiary the balance transfers to the share account. The saver carries on at whatever rate is in force at the anniversary date for another twelve months.

However, I opened two on the same date, both have tax taken off them, one was paid interest at the kids rate, one paid at the adult rate.
The tax was fixed quickly, as the halifax paid it back to the account, but the arguement over the interest rate took 3 months to resolve. But they paid that in the end.

Scaredy_Cat_3

Thanks for the advice everyone. I must (sheepishly) admit I did finally dig out the terms and conditions booklet and it clearly states it will continue at the present rate, which seems to be 6%. Since it's so obviously listed in their booklet, though, it does make me wonder why the branch weren't a bit more certain - and also why it's taking them so long to confirm it in writing to me. Should be pretty basic, shouldn't it?

Anyway, I was only saving £20 per month so only have around £260 per child... I did wonder if I should just drip feed that back into the account over the first 3 months and then it will still get the 6%, which seems to be the best rate available at the moment. I'm assuming there's nothing stopping me withdrawing the money from the Save4it accounts and putting it into my bank account to fund the standing order back into the regular saver (if that makes sense).

Mikeyorks

Scaredy_Cat wrote: »

Since it's so obviously listed in their booklet, though, it does make me wonder why the branch weren't a bit more certain

Because the frontline staff increasingly do not know their own products, I'm afraid.

I'm assuming there's nothing stopping me withdrawing the money from the Save4it accounts and putting it into my bank account to fund the standing order back into the regular saver (if that makes sense).

With the value involved - makes sense - and nothing to stop you doing it. The Regular Saver is a good way of churning new money (the £20) to best effect. Once you've built up the sums a bit the Guaranteed Reserve is an option to drop the matured funds into (has to go via the Save4it initially). Or consider an ISA if you or OH don't use your allowance (has to be in the adult's name ..... but resolves any tax issues if the sums get meaningful)

Scaredy_Cat_3

Thanks for that. I think this is what I'll do then, just put the money back into the new regular saver through my monthly standing order, along with the new investment. It's not a lot, I know, but money has been tight and I really want to keep saving something for the kids, even if it isn't much.

bylromarha

Did you ever get it in writing? My branch were unwilling to give me any literature stating that the rate would continue were I to continue with the regular saver.