Halifax Regular Saver

SKIPPY

I opened a Halifax Regular Saver last October, the interest rate was fixed at 5%. I was able to save between £25 and £500 each month. I actually saved £250 for the first 4 months and £500 for the remaining 8. The Halifax has now added the interest to the account but it is not a much as I thought it would be. Maths was never by best subject so using the Savings Calculator on this site I entered that I was able to save £250 each month and to look ahead four months with an interest rate of 5%. This gave me 1,008.21. I then entered £500, for 8 months at 5% which gave me 4,059.38. So by those figures I worked out I should've received £67.59 in interest. Am I correct or am I looking at it all wrong and if so could someone let me know how much interest I should've received. By the way I am a basic rate tax payer.

Many Thanks in advance.

Baldur

Did your payments go in on the same day each month? Are you sure that you received the 5%, as the rate changed last October down to 2% from memory?

If, for example, you had opened your RS account on 14/10/09 with £250 @ 5%, paid in 3 x £250 on 14/11/09, 14/12/09 and 14/01/10 then 8 x £500 on the 14th of each following month, your interest should have been roughly £95.07 after tax.

If you were unlucky enough to miss the 5% and only received 2%, but payments were made as above, then the interest would be roughly £38.03 after tax.

Edit:

Just to confirm that my memory was correct (if vague), the rate dropped as of midnight on 15/10/2009 - https://www.emoneyfacts.co.uk/news/savings-news.aspx?newsarticleid=190011

opinions4u

The rate on the account is determined by the date you first fund it.

If you opened the account when the rate was 5%, but didn't make the first deposit until after they reduced the rate, you would get the reduced rate.

It would actually help if you told us how much interest you have received, and what date the first credit was made to the account. 15th October 2009 = 5%. 16th October 2009 = 2%.

SKIPPY

I opened the account on 11/10 and it definately said 5% fixed, the payments left my current account on the 11th of each month but were credited on various dates from the 13th to the 16th of the month. It does look like I've only received 2% as I've only received £38.46 in interest. I did speak to someone at the Halifax a few months back and they confirmed that it was 5% fixed, I can feel a phone call coming on, don't suppose it will do any good though :mad:. The first credit was made on 16th of October, the latest date out of all the payments!!!!

opinions4u

SKIPPY wrote: »

The first credit was made on 16th of October, the latest date out of all the payments!!!!

And as a result you earn 2% interest for the year.

Sorry if that's not what you wanted to hear.

SKIPPY

No, not what I wanted to hear but beginning to think I've been stitched!!! Have looked at all the payments and they have taken 2-3 working days to be credited to the regular saver account. The first payment took 5 working days!!!!!! I somehow think they may have held onto the first payment somewhere.

opinions4u

SKIPPY wrote: »

No, not what I wanted to hear but beginning to think I've been stitched!!! Have looked at all the payments and they have taken 2-3 working days to be credited to the regular saver account. The first payment took 5 working days!!!!!! I somehow think they may have held onto the first payment somewhere.

Which bank was sending the standing order? Who set that mandate up (you or a branch opening the account)? Why didn't you fund the account on the day of opening? Was it opened in branch, online or by phone?

I think it's probably worth a go with their complaints department.

The standing order was set up prior to the rate change, so you are very unlucky.

Ask Halifax the question - why did it take so long for the first credit? That will at least make them look in to it. The likely answer is "the bank sending the payment took their time" but it isn't impossible that it was placed in a holding account for 24 hours if the Regular Saver account hadn't been properly opened.

Where you first make your complaint

We aim to resolve your concerns within 24 hours. Sometimes it may take longer to look into the matter fully. If this happens, we will let you know within 5 working days who will reply.


Often the people you first raise the matter with are able to help, but there may be occasions when a specialist area needs to be involved. If you don't know who to contact, you can:

• Telephone Customer Relations on 08457 25 35 19
• Contact us using Textphone if you have a hearing impairment on 08456 00 17 50
• Write to us at: Halifax, Customer Relations, PO Box 548, Leeds LS1 1WU
• Fax us on 08451 28 13 85

My own view is that Halifax have complied accurately with the T&Cs of the account. There is no conspiracy to try and pay you less interest. They just don't work like that. But ask for them to reconsider the amount of interest paid, as, in all fairness, you applied for the account prior to 16th October and instigated payment prior to this date. Unfortunately it just took time to get there.

If they reject you, ask them "How does that site with their 'Treating Customers Fairly' policy?" and if you don't get a more positive response it may be worth a hint that you're prepared to involve the FOS.

SKIPPY

As I said I opened the account on 11/10/09, it was opened online and all details were received on the 11/10. I set up the standing order there and then and it was taken out of my account on the 11/10. I banked with Alliance and Leicester at the time but that is obviously now Santander. No other payment has taken so long, all within 2-3 working days, one only even took 1 working day, so can't understand why the first one took 5!

SKIPPY

Also should they not have informed me of an interest rate change?

Mikeyorks

SKIPPY wrote: »

and it was taken out of my account on the 11/10.

You need to check that? 11th Oct 2009 was a Sunday ..... and A&L banking doesn't do Sundays (nor do SOs work at weekends).

It's normally a minimum 48hrs to get a first SO activated. And it may go FP now - but I suspect A&L still did (4 day) BACS back in those days?

Sceptic001

Mikeyorks wrote: »

It's normally a minimum 48hrs to get a first SO activated. And it may go FP now - but I suspect A&L still did (4 day) BACS back in those days?

I don't know if it is true with all banks, but when you set up a new payment with Santander/A&L the first payment does not go by FP.