Halifax reward current account - free money

pauljoecoe

I opened a new First direct account with my offset mortgage and was going to stop using the Halifax but...

By paying £1000 each month from FD to Halifax and then back again I make £60 a year tax free. Now that's not a bad interest rate is it?

P3dro

I believe it costs you £12.50 a month for the account though?

drlabman

I presume you mean you earn £60 in the Halifax account.

I think you'll find that the £60 is already net. The actual reward amount is £6.25 per month gross but it's already had 20% tax deducted. If you're a non-taxpayer you could claim the 12x£1.25 back.

jen245

No, not for the reward account, its the ultimate reward account that is £12.50 per month. I have the reward account aswell for the free fivers.

pauljoecoe

edit - sorry beat to it....No, that's the ultimate account that gives you extra benefits such as travel insurance etc. The reward account is free.

And yes £60 in the Halifax account.

drlabman

My point was that's it's not tax free. You've already had tax deducted before you get it.

LittleVoice

pauljoecoe wrote: »

IBy paying £1000 each month from FD to Halifax and then back again I make £60 a year tax free. Now that's not a bad interest rate is it?

As mentioned above, it is not tax free. It is a nett amount. If you are a higher rate tax payer, you'd have to pay another 20% in tax.

Interest rate is as good as it gets!

savemoney

No the basic one is free I move £1000 in 3 accounts and get £15 per month

P3dro wrote: »

I believe it costs you £12.50 a month for the account though?

adindas

Lucky you :-))
Nowadays it is not allowed to have more than one a/c

ADINDAS

savemoney wrote: »

No the basic one is free I move £1000 in 3 accounts and get £15 per month

savemoney

I have one, OH does and we have a joint a/c maybe you still can do this

adindas wrote: »

Lucky you :-))
Nowadays it is not allowed to have more than one a/c

ADINDAS

jennifernil

I have 3 sole and 1 joint, so that is £210 per year, then I reclaim the tax, so I end up with £262.50........well worth a little shuffling around of the £1k.