Halifax Current Account Interest

hellomoto

Hi,

I am not sure if anyone knows the answer but I have been all thru my paperwork and my head is swimming with the jargon.

I have a bog standard Halifax current account, if my payments / credits are £1000+ a month into it I get not bad interest, if they are under I get not very good interest.

Recently I got a pay rise and my pay now borders on the £1000 a month plus or minus due to some not garunteed element to my pay.

Most of my money goes straight off to other accounts, but some of it sits in the current account for days waiting for a direct debit, I wish to ensure I don't miss the interest on the account on months when my pay is not £1000+. I do not want to move current accounts right now.

My question is - is what is a payment / credit?

The obvious one is my pay.

Thanks for any help anyone can give.

Moggles_2

Hi hellomoto

I'm with the Hally.

Any money you transfer to your current account (money switched from another Halifax account, for instance), counts towards your £1000.

Hope this helps
M

bristol_pilot

I believe that with Halifax any money going into the account counts as a credit towards the £1000 pcm. So in months where you are just below the £1000 paid in that month, you can just draw out some cash and pay it straight back in again.

You probably should consider changing your 'bog standard' Halifax account to the High Interest Current Account that pays 5.12% interest on balances up to £2500. You keep the same account number, cheque book, card etc - it only takes 15 mins to change it, but you have to go into a branch. You also have to pay in £1000 pcm for this account to get the highest rate of interest. (But you will be better off with the 'bog standard' account if you often have very large balances in your current account, I mean tens of thousands).

Moggles_2

... in months where you are just below the £1000 paid in that month, you can just draw out some cash and pay it straight back in again.

This palaver satisfies the minimum payment requirement of any current account, but is unnecessary in the case of the Halifax.

Unlike most competitors, the Hally does not require customers to pay in £1000 of new money. You can simply transfer funds from your Halifax Web Saver or other Halifax account.

hellomoto

Thank you all very much, my question has been answered perfectly.
bristol_pilot; Yes, I am currently considering the High Interest account and thank you for letting me know the process is so easy.

Merlin139

[FONT=Arial, Helvetica]This is taken from the web site:
[FONT=Arial, Helvetica][/FONT]
Well, it couldn’t be easier. Just pay in £1,000 or more every month and the Halifax High Interest Current Account gives you these benefits:

• [/FONT]An incredible 5.12% AER for balances up to £2,500 and 0.1% AER/gross p.a. for anything over this amount*
  
• If you don't make payments of at least £1,000 for two or more consecutive months, you will earn 0.1% AER/gross p.a.on any balance until you start funding with £1,000 or more for three consecutive months.

I have a High Interest Account with them and maintain a balance of £2500 each day any credit above this I move to a web saver. If the balance drops below £2500 I move money from the web saver.

Gordon_the_Moron

I wouldn't advise transferring lots of money back and forth with the websaver to satisfy the requirement.

If its just the odd £50-£100 to push it from £950 to over £1000 (which would do for hellomoto) fine but if you earn £100 per month and transfer the £100 back and forth 10 times and lots of people do that then they will probably change the rules so it has to be 'new' money.

Moggles_2

Fair point, Gordon

Halifax is known to have above average numbers of students and pensioners. If customers carry this to extremes, we could all get one of those "To bring us in line with ..." letters/e-mails in next to no time!