A little savings advice needed please!

regularsaver1

http://www.halifax.co.uk/savings/personalrates.shtml#websfix

Some of the fixed rates increased today. They are currently reviewing the variable rates

ManAtHome

Have Halifax fixed rates changed by much - sure the 3-5 year ones were already in the 5.6something% area..?

regularsaver1

no not that much - although i think the tiers have changed

Mikeyorks

ManAtHome wrote:

Have Halifax fixed rates changed by much - sure the 3-5 year ones were already in the 5.6something% area..?

They can only have changed the earliest rates ... as the 2 to 5 year ones (inc) were exactly as now when I checked them several days ago (but must confess I didn't check the date on them - so they could have popped the rates in a few days earlier than they took effect)

ManAtHome

Cheers Mike, thought senility was setting in...

Found that they've increased a couple of the dozen advertised rates by an entire 0.1%...

Birmingham Midshires (aka Halifax) have increased their 1 year rate to 6%, but still no movement on longer terms.

blizeH

Huge thanks once again for the info, almost definitely going to open that Halifax saver and set up a S/O of £250 per month into it. Quick question; with those accounts that only payout interest for a year or two (like the Halifax/Lloyds Monthly Saver) do they give you a warning when it's about to expire, or should I keep a track of it anyway?

Also wondering if it's worth me getting the Icesave account @ 5.7% or whether I should wait a little while if the interest rate is set to increase again?

Mikeyorks

blizeH wrote:

Huge thanks once again for the info, almost definitely going to open that Halifax saver and set up a S/O of £250 per month into it. Quick question; with those accounts that only payout interest for a year or two (like the Halifax/Lloyds Monthly Saver) do they give you a warning when it's about to expire, or should I keep a track of it anyway?

No. Whilst the Halifax is an 'annual' Regular Saver .. you can continue it into a further period. If you're an existing Halifax customer the best thing is to fund a separate Web Saver with £3k. Then set up an SO within that to send £250 directly into your Reg Saver account. When you open your Reg Saver - nominate the Web saver as your 'nominated' account. Which means, on the anniversary date the £3k + interest will be put back into that account. Then take the interest out to ... wherever - leaving £3k. Which will then start to plod around the cycle for the 2nd year etc. Easy?

Couple of points.

1) No they don't give any warning. But at the top of the Reg Saver account it shows both your 'nominated' account ('cos people forget) and the Anniversary date (..ditto..).

2) When your Reg Saver is set up and you know the anniversary date - you may need to adjust the date your SO pays in. This in order you don't make 13 payments in the first year? It's not an offence - but it will lose you interest in both the first year (because your 13th payment will only get interest for a day or so) and the second year (because you can't make 2 payments in the same calendar month - so your 2nd year will have no payment in it for the first month.) Example always easier in this case :- assuming your anniversary date is 2nd Feb 07 and that's the date your first payment was credited and your SO (instant credit) is 1st March and monthly thereafter? The payment you make 1st Feb 08 - will be the 13th credit (and will be swept out to your nominated account the day after!) Avoid that happening - by simply adjusting your SO to the 3rd of the month. You can do that as early as March 07 .. or can leave it until after your 1st Jan 08 payment is made? Once done - leave it and the 2nd and subsequent years will then be OK, as the anniversary date remains constant.

Note you can only make one payment in a calendar month .. and it must be before the 28th.
Here endeth ....;)

blizeH

Huge thanks for the great reply, a couple of things though:

1) I've already got a web saver unfortunately so can't do that! I guess I'll just have to remember to ditch the standing order this time next year.

2) Good call, cheers. Already got something similar in my Lloyds account where I pay money in one or two days after the day the account was opened, if that makes sense?

Should I bother with Icesave at all?

blizeH

Okay, just opened the Halifax account, quick question:

It says "The sort code and account number entered do not relate to one of our banking or savings accounts. Please check and rekey." - Does that mean it's not been set up yet or have I wrote down the sort code etc incorrectly?

Also, the lady said I couldn't use my Web Saver, but I can't see any reason why not. Should I try it anyway or could they then take away my interest?

Mikeyorks

blizeH wrote:

1) I've already got a web saver unfortunately so can't do that! I guess I'll just have to remember to ditch the standing order this time next year.?

Wouldn't have suggested it ... if you can't do it. You can have several concurrent Web savers - you give them a distinguishing name (Holidays / Bills etc) for easy recognition. Just hit the 'Open a new Account' button on your online Portfolio - pick the Web Saver option and follow it from there. But be careful to choose the right Web Saver (no cash card .. and variable rate). A while since I set one up, so can't remember if it shows on your Portfolio immediately .... or has to go through the Halifax overnight batch process

blizeH wrote:

Should I bother with Icesave at all?

That can only be your decision. I keep all my easy access funds in the Halifax products. But use NS&I / Birmingham Midshire / Coventry etc for 'period' accounts. But it's a personal choice - that you can inform by reading articles / threads around this site?

blizeH wrote:

Okay, just opened the Halifax account, quick question:

It says "The sort code and account number entered do not relate to one of our banking or savings accounts. Please check and rekey." - Does that mean it's not been set up yet or have I wrote down the sort code etc incorrectly?

Unsure - but suspect you're trying to add it before the account is established? Give it 48hrs and try again. Halifax ISAs, in particular, seem to take several days before they will add to a Portfolio.

blizeH wrote:

Also, the lady said I couldn't use my Web Saver, but I can't see any reason why not. Should I try it anyway or could they then take away my interest??

The 'why not' is because it's against the T&Cs for the Regular Saver! See the final para of my post #11. So that is the verbal response you will get.. if you ask. But the software allows you to do it .. and it's a legitimate loophole that's been explored the last couple of years. As it facilitates a direct transfer - rather than messing around having to bounce it via a current account. No, they won't remove the interest as it's something they are aware of. Their software allows it and their Help Desk staff did set some up directly if one goes back to when the SO facility on Web savers couldn't be set up online. So - they may close the loophole sometime, but they would find it impossible to claw back the interest.