Halifax Guaranteed Saver - Monthly Interest?

glider3560

Does anyone know if Halifax will pay monthly interest on their Guaranteed Saver?

I'm earning less than my tax allowance this tax year but will certainly become a taxpayer next tax year.

I am due a substantial amount of interest on this account in November but would rather as much as possible was paid this tax year (for obvious reasons).

psychic_teabag

T&C say the interest is paid on the anniversary of first deposit, which suggests no monthly option. Closing the account and opening another one should give you all the interest pending. But as far as I can see, it's only paying 0.5% (or maybe 0.7% if you have a current account with them) - you can do much, much better than that.

Halifax's instant-access ISA is one of the better rates around - if you're about to become a taxpayer, perhaps move some money to one of those if you haven't already used ISA allowance for the year.

opinions4u

It doesn't pay interest monthly.

You could close the account and reopen it towards the end of the tax year. That could break eligeability for the extra 0.2%.

Or, if you can find a member of staff who knows what they are doing, ask them to add the interest early (it can be done, but it probably isn't in any procedures manual anywhere ).

rb10

psychic_teabag wrote: »

T&C say the interest is paid on the anniversary of first deposit, which suggests no monthly option. Closing the account and opening another one should give you all the interest pending. But as far as I can see, it's only paying 0.5% (or maybe 0.7% if you have a current account with them) - you can do much, much better than that.

The Guaranteed Saver Reward actually pays 2%, or 2.2% if you have a current account with them.

Best way around it is to close it at the end of March, and then open a new account.

T&Cs confirm that you will receive the Reward rate for the year to date:

If you close your Halifax Guaranteed Saver Reward account during the Reward year, providing you meet the Reward conditions
then you will earn the Reward interest rate up to the point of closing your account.

Note that you will not receive the extra 0.2%, only the standard 2%.

opinions4u wrote: »

Or, if you can find a member of staff who knows what they are doing, ask them to add the interest early (it can be done, but it probably isn't in any procedures manual anywhere ).

I don't think it can be done on the new counter system, as that doesn't allow staff to use notations on any deposits/withdrawals.

glider3560

Thanks for the replies. Yes, it is the Reward version so 2.20%.

The amount not paid in tax makes up for the lost 0.2% so I think closing the account at the end of March will be the easiest option.

psychic_teabag

You can still do better than 2% without too much trouble. So if you're going to lose the 0.2% anyway, you could still consider closing it immediately and opening something better.

glider3560

psychic_teabag wrote: »

You can still do better than 2% without too much trouble. So if you're going to lose the 0.2% anyway, you could still consider closing it immediately and opening something better.

Thanks for the prompt. Just noticed the Newcastle account at 2.7% which looks enticing. I tried the PO account at 2.9% but their administration was completely appalling so the account never got opened.

psychic_teabag

Santander are offering 2.9% for instant-access (though some would advise steering clear of them). ING are 2.8% (probably for new customers only,).

I assume you've already used your cash ISA allowance for this tax year.

glider3560

psychic_teabag wrote: »

Santander are offering 2.9% for instant-access (though some would advise steering clear of them). ING are 2.8% (probably for new customers only,).

I assume you've already used your cash ISA allowance for this tax year.

Yes, I'd never touch Santander

After the Icesave fiasco, I'd rather not use a bank on the passport scheme.

My ISA allowance has about £1000 short, but I'll be filling this to the maximum in the next few months. The money in the Halifax account is there for a specific purpose, so I don't want to ISA this as it will need to be withdrawn in the next year.

rb10

glider3560 wrote: »

Just noticed the Newcastle account at 2.7% which looks enticing.

Alternatively, if you can restrict withdrawals:

Halifax Web Saver Extra - 2.7%, 1 withdrawal per year (so same rate, but easier to open as an existing Halifax customer)
Nationwide MySave - 2.78%, 1 withdrawal per year

psychic_teabag

glider3560 wrote: »

The money in the Halifax account is there for a specific purpose, so I don't want to ISA this as it will need to be withdrawn in the next year.

There's also the Coventry e-Notice account paying 3.05% I think - requires 1-month notice to withdraw, but if the event next year is predictable, or comes with enough warning, that might work out. Couple of others at 3% listed at
http://www.!!!!!!.uk/free-services/best-buy-savings-accounts/notice-accounts-approx-1-month/