Am I losing £40 a month in interest?

bronzie

Hi

I have a Halifax Rewards Current Account which pays £5 a month, I am trying to figure out what £5 is as a % of the £1000 I pay in. I make it 0.05% interest I'm earning? Is that right, my math isnt great...

I was thinking about opening a Lloyds TSB Vantage account, so I'd get 4% on my £1,000 which is I make is £40 per month but that doesnt sound quite right.....

Heres the sums I did:

Halifax: 5/1000 * 100 = 0.5
Lloyds: 4/100 * 1000 = 40

If my sums are right though, I should change quick smart but I have my doubts, can someone check for me pls?

hackedoffatthem

Is this account for your savings? Are you depositing the £1000 and leaving it there?

Lokolo

bronzie wrote: »

Hi

I have a Halifax Rewards Current Account which pays £5 a month, I am trying to figure out what £5 is as a % of the £1000 I pay in. I make it 0.05% interest I'm earning? Is that right, my math isnt great...

I was thinking about opening a Lloyds TSB Vantage account, so I'd get 4% on my £1,000 which is I make is £40 per month but that doesnt sound quite right.....

Heres the sums I did:

Halifax: 5/1000 * 100 = 0.5
Lloyds: 4/100 * 1000 = 40

If my sums are right though, I should change quick smart but I have my doubts, can someone check for me pls?

You are doing it wrong.

You would get £40 over the year with Lloyds.

With halifax you get £5 a month. £60 a year.

CLAPTON

if you keep 1,000 in an account for an entire year then Lloyds will give you 4% i.e. £40 in the year

the halifax give you £5 per month which is £60
do halifax simply require you to pay in 1000 each month (and then it can be withdrawn until the next month)

work out what you get in a year; it's alot easier than trying to work out percentages

apt

No maths is not your strong point Bronzie. You only get 4% interest on a Lloyds Vantage account if your balance is £5,000-£7,000. If you have £7,000 in the Vantage account and move £1,000 in and out you will get almost £18 interest per month. There's no need to choose between Halifax reward and Lloyds Vantage as you can have both.

bronzie

Ah thanks everyone. Sounds like I am best staying where I am them.

I was thinking about keeping my halifax account and opening a Lloyds account too which I would switch £1000 to qualify for the 4% interest, just trying to make the most of my money, I dont qualify for the Santander account, Lloyds seems to be the next best thing.

Chorlie

Also the Halifax £5 is Net (after tax)

Lloyds 4% is Gross (before tax)

So Halifax you get £60 per year

Lloyds you get £32 per year

That's if you're a basic tax payer.


Or open both A/c's (if you have between £5k and £7k) and move £1000 from Lloyds to Halifax and back again, then you get both lots of money with the same £1000.

bronzie

Think I'll look at savings accounts/ISA's then, getting promoted as of Jan so want to make the most of the extra money coming in.

anselld

There is no point calculating percentages for Hfx Reward since there is no point leaving any money deposited. Just move the £1000 into the account, then straight back out to another interest bearing account. Percentages are irrelevant, it is just free money!

Sooler

assume you pay in £1000 then move it out straight away, if the money is in the account for one day at the most you get £60 for having £1000 on deposit for 12 days.

move it out the same day you pay it in - you get £60 for a daily closing balance of £0