Halifax Regular Saver

sunshowers

I'm hoping to open a Halifax RS soon. I have a few questions for people who already have this account.

-Is the monthly s/o based on calender months?
>if so, is it worth waiting till the end of the month before opening?
>if not, can the date of the s/o be changed so that it goes in at the beginning of the month, after the first payment is made?

is there a reminder anywhere of when the account is opened to ensure the allowance isn't exceeded?


-Also, what happens at the end of the year?
>does it empty into the nominated account and start over?


Thanks in advance!

LittleVoice

Yes, monthly SO relates to calendar months - so you can change the date (eg original day of 18th can change to 5th or whatever). However, ensure you will always have a payment each month so avoid it leaving your other account late in the month as this may miss the end of the month (eg in February or when BH is right at the end of May).

They automatically move your capital and interest at the end of the year (anniversary of opening account) to your nominated account (eg Websaver).

You will get a note about this and this will remind you - though you can continue saving in the same account - you simply start building up from the basic payment again.

tom188

Also remember if you open the account then move the payment date forward to move it back after the 12th payment. Otherwise you will end up with 13 payments into the account and nothing to go in once the account roles over (as you can only pay in once pcm).

LittleVoice

tom188 wrote:

Also remember if you open the account then move the payment date forward to move it back after the 12th payment. Otherwise you will end up with 13 payments into the account and nothing to go in once the account roles over (as you can only pay in once pcm).

Sorry, I don't understand this.

The scheme works on calendar months - February, March, April and so on - not, for example, 6 March to 4 April.

Why do you think that not moving the date at the end of the contract year would mean having two payments in a month? Can you give an example of how this could work - ie not doing something (rather than doing something) would have this effect.

Kazza242

LittleVoice wrote:

Sorry, I don't understand this.

The scheme works on calendar months - February, March, April and so on - not, for example, 6 March to 4 April.

tom188 is correct. If you opened your account on, for example, April 5th and then moved your subsequent payments forward to the 1st of each month (May 1st, June 1st) etc. then after your 12th payment on 1st March 2008 you would have to move the SO date back so that the payment would arrive after April 5th - provided you intended to re-start saving into the regular saver for a second year.

Failing to do so would result in a 13th payment hitting the account before maturity. All funds would then be swept out into the nominated account and you would not be permitted to add another payment into the account until May 2008 therefore losing out on April's payment.

Some people get around this by setting their SO to a date of the month after their account was opened. Using my example above this would be 6th.

Innys

Hi guys

Just to hijack this thread, if I may...

I have just collected my matured Halifax RS proceeds and while there the branch staff suggested the RS is not the best option for a higher rate taxpayer.

They said HBOS offer a "Capital Investment Plan" product whereby the return are shielded from income tax and any capital gain is bound to be within the holder's CGT allowance. The guy said this was like an OEIC or Unit Trust investment, in that respect.

I already have other OEIC and UT investments and have not found the returns on them to be that great, so I am a bit sceptical.

What is everyone else's view?

Thanks

I

oldfella

They said HBOS offer a "Capital Investment Plan" product whereby the return are shielded from income tax and any capital gain is bound to be within the holder's CGT allowance. The guy said this was like an OEIC or Unit Trust investment, in that respect.

I already have other OEIC and UT investments and have not found the returns on them to be that great, so I am a bit sceptical.

What is everyone else's view?

---

rule 1 - do not buy an investment product from a bank, it will have a high charge and you can always do better elsewhere

Mike

sunshowers

"Yes, monthly SO relates to calendar months - so you can change the date (eg original day of 18th can change to 5th or whatever). "

If this is so, is it better to open the account late in the month, and then change the s/o date to early in the next month, so that you get £500 in very qucikly...or does it not make a difference?

Kazza242

sunshowers wrote:

If this is so, is it better to open the account late in the month, and then change the s/o date to early in the next month, so that you get £500 in very qucikly...or does it not make a difference?

You would earn a bit more interest, as you would be earning 7% on your second £250 quicker. However, it's best not to open it too late in the month, as your standing order payments must reach the regular saver on or before the 28th of each month.

If you are going to open your account late in the month then I wouldn't do so any later than the 23rd. This will allow you enough time in the month to change the SO date after the 12th payment. Also, if you start it this month your account will mature in time to enable you to put the £3,000 into your ISA at the start of the tax year.

sunshowers

hey everyone,
I managed to open this account over the phone today. I was told that the s/o has to be from the current account. Can it not be fed through the Websaver?

The Halifax website says: "Set up a monthly standing order from your bank account"

Thanks

Mikeyorks

Yes .. it's one of those areas where you do it, rather than asking. The T&Cs specify you can't feed from a Halifax savings account - but the software hasn't read them. Several previous threads on this if you want to cross-check - but it works fine for both mine (self and OH)

Just go into your websaver and set up a SO directly to the RS account (instant transfer - so specify the day you want it to hit, which must be before the 28th)

To pick up one of your earlier queries - the Anniversary date for the RS is clearly shown on the top section when you click open the RS account from your Portfolio