How web saver works

Toni-Mari

Hi Guys

Looking for some help.
If we open a web saver extra acct, with the halifax, and we put an initial amount in, then we add to that over the next year, how will that affect the interest, is it calculated monthly?:D cheers

CLAPTON

interest is worked out on a daily basis (i.e on the daily balance.

Toni-Mari

ok cheers :-)

david78

Obviously if you put more money in, you will earn more interest on that money from that date. Interest accrues daily but they only add it to your account once year. There may be a monthly option available as well.

The interest rate is not great though.

Toni-Mari

I'm just weighing up the pro's and con's. Got a full time job now so looking towards the future, but knowing I might just need access to the money in the near future, the web saver seems like a good idea. I think it's 2.50% with 1 withdrawal without penalty

Toni-Mari

So would you see the amount go up a wee bit daily...weekly... or is it a lump sum at the end of the year?

david78

Be careful. There's "web saver" and "web saver extra".

Web saver only pays 0.25% and unlimited withdrawls.

Web saver extra pays 2.50% at the moment and allows 1 withdrawl a year.

Interest is added in one lump sum on the anniversary of when you make the first payment. You then keep that interest date for subsequent years.

Derivative

http://www.halifax.co.uk/savings/accounts/easy-access/web-saver-extra/

Halifax wrote:

Interest paid annually on anniversary of first credit.

I recommend you have a look at some of the other accounts available on the MSE site - 2.5% is rather low. I get 3% with Santander eSaver Issue 3. You can also have this account pay monthly if you wish.

http://www.moneysavingexpert.com/savings/savings-accounts-best-interest

Toni-Mari

Websaver extra is our choice, I did see the difference. Santander been getting a lot of bad press on here recently?

Derivative

Fair enough, I would look at the other offers on show though. Banks thrive on 'loyalty' as people see it as 'easier' to stay with their current bank - 0.5% is £25 on a full ISA!

rb10

EdgEy wrote: »

Fair enough, I would look at the other offers on show though. Banks thrive on 'loyalty' as people see it as 'easier' to stay with their current bank - 0.5% is £25 on a full ISA!

Yes ... but Toni-Mari is not looking at an account paying 0.5%, but one that pays 2.5% (or 2.7%) instead ... not the very best out there, but not far off, either.

If they have a Halifax current account, then they'd lose £3 in interest per £1k in the account compared to the Santander 3% account. Not a huge amount, given how easy the Web Saver Extra is to open.