Halifax 'Monthly Saver' @ 5.30% = less than online

ED

For the 2nd time running, Halifax plc is increasing by only 0.20% interest on its long-standing Monthly Saver a/c (not to be confused with the excellent Regular Saver), & offers only 5.30% effective Sept 1.

Halifax seems uncompetitive with Derbyshire Bdg Soc's regular monthly a/c offering 5.85%.

Instant access online a/c's (ideal for lump sum investment) seem more attractive than bothering with monthly deposits in this Halifax a/c, for eg :

5.65% AER/gross is offered by Cahoot

5.40% gross from Birmingham Midshires

5.30% gross from Leeds & Holbeck Bdg Soc

I'm immediately swapping my Standing Order to the Halifax 'Monthly Saver' from £500 per month to £5. (Rules indicate one change per year is allowed re the amount deposited.) Soon I'll be withdrawing most of my funds in the a/c, and will close it on its anniversary.

However, I aim to continue with Halifax's newer a/c Regular Saver which still exceeds others with its 6% fixed rate.

Anyone here decided on a similar action plan as me?

Leia_Stephens

Instant access
I'm immediately swapping my Standing Order to the Halifax 'Monthly Saver' from £500 per month to £5. and will close it on its anniversary.

However, I aim to continue with Halifax's newer a/c Regular Saver which still exceeds others with its 6% fixed rate.

Anyone here decided on a similar action plan as me?

When I opened my Regular Saver I changed my Monthly Saver amount to £5 per month too . In fact I used some MS funds - £250 - to open my RS, I hadn't withdrawn from this a/c prevously so I didn't lose my bonus:D.

I am sticking with the RS too, but I am hoping that it is possible to keep the monthly standing orders going into this after the anniversary date, I have not stipulated a finish date for these so's so hopefully they will continue after the year is up ;D.

I know that, unfortunately, the first year's RS money is "automatically swept back" into "your nominated Halifax a/c", but I am planning to use this money to make up £250 for as many months as I can during the 2nd and subsequent years .

I want this or a regular-saver-a/c-which-pays high-interest for the long-term (about 20 years) because I am saving for my nephew and don't want to subject this money to any risk.

Being a MoneySaver, perhaps I should close my MS and continue to save £5 monthly somewhere else .

Leia

ED

Leia – sounds eminently sensible!

Just one more Base Rate rise by the Bk of England could put Derbyshire Bdg Society's regular, monthly savings a/c ahead of Halifax's Regular Saver. For instance, a 0.25% rise could boost to 6.10% Derbyshire's 5.85% rate effective September 1st. Luckily, Derbyshire allow up to £1,000 per month to be invested.

Halifax branch staff told me, last March, to leave blank the application form question re end-date for Regular Saver funding, saying, "It'll probably continue". But as you say, the anniversary balance is to be transferred (unless Halifax relax the rule, around March).