Halifax Guaranteed saver account

digerati

You are best

Nipper78 wrote: »

If I had 5k in the accounts for 6 months then went below, could I cancel the accounts and get the 6 months at 5.25 for example?

Most Reward and Saver accounts only pay the higher rate for the full term. Should you close the account or fail to meet the account terms it'll fall back to a much lower interest rate. Ask the bank for details and make sure that you read and understand the terms of the account.

Reward and Saver accounts are designed for regular savers who don't need to touch the money. Some accounts will allow one withdrawal per year without penalty, other more. If you need access to funds in a hurry, set up a "rainy day" or "emergency" fund specifically for that purpose.

At least once a year survey the bank accounts and rates on offer, and if you find better don't be afraid to move accounts to a new bank or account. (I used to bank with Barclays too.)

digerati

Check this MSE article for further details - MoneySavingExpert: Regular Savings Accounts: Earn up to 7.5%

regularsaver1

Hi
have you looked at the Halifax website. i found this:

http://www.halifax.co.uk/savings/guaranteedsaver.asp

"Halifax guaranteed saver
Open a Halifax Guaranteed Saver and earn 5.25% AER that's guaranteed to track the Bank of England base rate until 16 July 2008.

To get this rate:

Minimum opening balance £5,000 (£1 for under 21s)
Pay £1,000 every month into a qualifying Halifax or Bank of Scotland personal current account or £50 in to a qualifying Halifax or Bank of Scotland Ultimate Reward Current Account
Easy access to your money with a cash card, in branch, by phone or online
Four withdrawals a year without loss of interest
As a special offer, until 9th August 2007, to qualify for this great rate of 5.25%, all you need to do is keep your balance at at least £5,000 - you don't need to pay £1,000 into a qualifying Halifax or Bank of Scotland personal current account or £50 into a qualifying Halifax or Bank of Scotland Ultimate Reward Current Account!

After 9 August 2007 when our special offer ends, if you don’t pay £1,000 a month into one of our qualifying personal current accounts or you have not paid £50 into a qualifying Ultimate Reward Current Account, you can still get a rate of 4.25% AER which is guaranteed to track 1% below Bank of England base rate until 16 July 2008.

To get this rate:

Open your account with £5,000 (£1 for under 21s) and maintain a balance of at least £5,000
Easy access to your money with a cash card, in branch, by phone or online

Four withdrawals a year without loss of interest. If you make any more than four withdrawals in a year you will lose an amount equal to 30 days interest on the amount you withdraw. Closing your account is classed as a withdrawal.

And if your personal current account is with another bank, don’t worry because our dedicated transfer team can switch your account for you. All you need to do is fill in two forms and we will do the rest for you.

Important Information - please see this section for important information about our special offer, available up to 9th August 2007.

Check eligibility for Halifax Guaranteed Saver"

Nipper78

I've read all of that. Forgive me but being a relative newbie to savings accounts I don't quite see my question directly answered in there. The main point I note is a cancellation is considered the same as a withdrawal, but I don't think it says anywhere what fee you'd pay, or what interest you'd lose if you cancelled the account say 6 months in. This is where I favour A & L because they pay interest monthly.

digerati

Nipper78 wrote: »

If I had 5k in the accounts for 6 months then went below, could I cancel the accounts and get the 6 months at 5.25 for example?I'm swaying to Halifax at 5.25% as it allows 4 withdrawals a year with no penalty. A & L have 5.8% but you lose the months interest.

Only if the interest is paid monthly. Read the fine print of the account. That should spell out the terms and conditions in plain English.

Nipper78 wrote: »

I've read all of that. Forgive me but being a relative newbie to savings accounts I don't quite see my question directly answered in there. The main point I note is a cancellation is considered the same as a withdrawal, but I don't think it says anywhere what fee you'd pay, or what interest you'd lose if you cancelled the account say 6 months in. This is where I favour A & L because they pay interest monthly.

Before you open a savings account you need to decide whether it's short or long term. Next study the options, and ask the right questions. Failure to do so can have adverse financial effects.

If you might need funds at short notice, then a term deposit account might be the best option with a one month rollover. That way you'll only lose one month's interest at most should you need to cancel it in an emergency. A sounder strategy is to have a suitable "rainy day" fund set aside for just such occasions...

If you are positive you don't need the funds during the savings term, then a Reward and Saver accounts offer slightly better returns.

Most saving accounts offer high interest (and sometimes a bonus) if paid yearly rather than monthly. Banks and building societies like to "lock in" your funds for as long as possible so they can generate a decent return.

However, only you can decide what it appropriate for your financial circumstances.

regularsaver1

"If you make any more than four withdrawals in a year you will lose an amount equal to 30 days interest on the amount you withdraw. Closing your account is classed as a withdrawal."

30 days interest penalty