Halifax Current Account Rate Decrease due in Feb 2007

bananajet

Today, I received an unepected bank statement which contained a footnote labelled "IMPORTANT INFORMATION" as follows: "From 7th February 2007, if you are currently paying £1,000 or more into this Current Account every month, the credit interest rate will reduce to 1.50% gross p.a. (1.51%EAR). If you pay less than £1,000 into your account every month, your credit interest rate will remain the same."
When I 'phoned to query the information, Halifax were unable to explain the wording and asked me to call in at my local branch. When I did so, they confirmed my suspicion that this was the bank's chosen method of telling their customers that their current account interest rate will decrease to 1.5% (or 0.01% if you pay less than £1000 per month)
I don't know about you guys but I shall certainly vote with my feet! How dare they reduce the interest rate paid when the bank rate has gone up! Why don't we make an example of them and make them all think twice about how they do business?

tom188

Its just yet another example of a bank trying to claw back money it is having to refund to bank charge reclaimers.

Rafter

It is called making a profit.

How are they expected to sustain a rate like 5% per annum when they have to pay for branches, cards, cash machines, computer systems, staff, cheque books, security etc etc etc.

Nobody is going to offer you a 5% rate forever on a current account. Even building societies which don't have shareholders only pay under 5% long term.

If you are going to switch to Alliance and Leicester or Halifax you are getting a bonus interest rate for 12 months - not a long term deal.

If you are looking for a long term good rate have a look at Nationwide, Smile, First Direct (as long as you take home more than £1500 per month).

R.

regularsaver1

There is a reason for this - they have a better account to transfer to. That is what they are concentrating on.

If you pay £1000 a month in then you qualify for either.

1 - High Interest Current Account - paying 5.12% AER - THIS RATE IS STAYING

2 - Moneyback - (although this is due to change shortly to any funds per month. giving 1% cashback on debit card purchases).

You have what they currently call Current account A (£1000+ a month) paying 3%ish. This has been replaced by the High Interest - but you must change your account to it by redesignation - you sign a form, easy as that. People don't apply for your type anymore, as the High Interest is available, but you have to approach them to redesignate.

There is also a current account B - under £1000 a month.

There are bringing out a new current account next year also - so my guess is that they are focusing on that.

M_Thomson

bananajet wrote:

Today, I received an unepected bank statement which contained a footnote labelled "IMPORTANT INFORMATION" as follows: "From 7th February 2007, if you are currently paying £1,000 or more into this Current Account every month, the credit interest rate will reduce to 1.50% gross p.a. (1.51%EAR). If you pay less than £1,000 into your account every month, your credit interest rate will remain the same."
When I 'phoned to query the information, Halifax were unable to explain the wording and asked me to call in at my local branch. When I did so, they confirmed my suspicion that this was the bank's chosen method of telling their customers that their current account interest rate will decrease to 1.5% (or 0.01% if you pay less than £1000 per month)
I don't know about you guys but I shall certainly vote with my feet! How dare they reduce the interest rate paid when the bank rate has gone up! Why don't we make an example of them and make them all think twice about how they do business?

Calm down and read the post above mine.

jonnyb

regularsaver is right about them bringing out a new account in Feb 07.

I was at my local branch today, finally getting the girlfriend to change her basic current account to the high interest one, when our friendly halifax counter assistant told us cryptically to keep an eye on things in Feb.

she suggested that they would have an account with lots of added benefits; I'm instantly thinking "barclays additions" and similar - monthly fee for "perceived benefits." - maybe I'm just being cynical ?

regularsaver1

I wouldn't say perceived - not bad actually

its not as though they are removing the high interest account - they will have both

vwman_3

I have a current account with the Halifax, and they have asked me if I wish to change to the high interest account, does anyone know if doing the change involves a credit search.

jonnyb

we changed my girlfriends the other day and they never mentioned a credit search. took 2 minutes at the counter.

soozig

vwman wrote:

I have a current account with the Halifax, and they have asked me if I wish to change to the high interest account, does anyone know if doing the change involves a credit search.

No credit check , just put your signature on a redesignation of account form and it changes overnight to the new type of account

soozig

Halifax are definately bringing out an extras account in February.