Changes to Halifax childrens regular saver ac?

zowoods

Hi all,
I got a letter from Halifax stating they are changing the Childrens Regular saver. Currently on anniversary the money transfers into a childrens saver paying a pittance (I then take this out and put into Northern Rock easy access 3% ac!)

However on the anniversary of the ac 14/02/12 it will automatically become a young saver currently paying 2%

Their new range includes a Kids RS just like the childrens RS paying a 6%. and after 12mths the Kids RS will transfer to a young saver.

SO basically every yr my daughter is going to gain another halifax account and I will every year need to open a new kids RS is this correct??
It seems a right pain in the behind! and then I will have to close the young saver ac each time!!

I get they are doing this to make it harder for people to earn the 6%...but really?!?!?
Have I read this correctly?

lkmc01

Hi

Yes you are correct. I opened one at the end of December and was told the same thing. I think after the first year you could use the money in the young savers to fund another kids reg saver, but yes it would be better in another instant access saver and feeding it through to the kids reg saver. So 3% drip fed through to 6% instead of 2% through to 6%.

I was new to me at the end of December as I had not had a kids reg saver since they stopped the save4it. But at least the young savers is 2% where as the save4it is 1.05%.

zowoods

ah thanks as I thought then how annoying!

zowoods

martin needs to update the childrens saver info then!"

Mandelbrot

zowoods wrote: »

Their new range includes a Kids RS just like the childrens RS paying a 6%. and after 12mths the Kids RS will transfer to a young saver.

SO basically every yr my daughter is going to gain another halifax account and I will every year need to open a new kids RS is this correct??
It seems a right pain in the behind! and then I will have to close the young saver ac each time!!

They are doing a very similar thing with the adult Regular Saver now too.
In the past, on anniversary the proceeds just transferred out to the linked account and a new year could start in the same Regular Saver account automatically.
Now, on anniversary, the proceeds do not transfer out, they stay in the account which automatically becomes an Everyday Saver.
Presumably, if you then open another RS account, you would have another Everyday Saver account after 12 months.

A bit hypothetical in the case of adults though, I suspect, since their RS rate (at 2%) is no longer worth having.

opinions4u

I get they are doing this to make it harder for people to earn the 6%

This absolutely isn't the reason.

The Halifax (and BoS) accounts now sit on the LTSB systems which don't have the capability to do what HBOS used to do.

So they copy what has already happened with Lloyds Monthly Saver.