Halifax Reward Current Account - What Do You Think?

Watson90

Hi everyone

I'm a new guy here and I am just looking for a little advice on an account with Halifax.

I'm 22 now, and I've been with Halifax for as long as I can remember. I've never really ever looked into banking accounts for their benefits/drawbacks (which may be foolish) but today, I received a phone call from a Bank Manager at my local Halifax which has made me a bit weary, as I always feel like their is a catch to something.

I had a Student Current Account with a £500 overdraft which was interest free even if I went into it, but obviously since leaving university, this account has been removed and now I'm just a regular current account user.

A few months ago, I managed to pay off £350 of my £500 OD and I now have just a £150 OD. Every payday I am constantly going into this as soon as my debts have been withdrawn from my account, I get charged £1 for every day I am in my OD limit - resulting in roughly a £20 charge each month. I am hoping to pay the remainder of the OD off in January.

The Bank Manager has called me up this morning obviously made me aware of this issue and asked if I would like to switch to the Halifax Rewards Current Account, the one where as long as you pay in £1000+ each month you get £5 cashback from them, he also stated that I can cap my overdraft fees to £15 even if I go over 15 days of being in the overdraft which sounds appealing!

I have looked on the Halifax website and it all sounds good (obviously it will sound great). However I'm just unsure about this whole switch-over, surely they must be getting something from it and surely there has to be some catch or downsides.

Has anyone had experience with this type of account and could maybe suggest what the best way forward is as I don't want to be stung, any help is greatly appreciated.

Thanks

Steven

Consumerist

Hi watson and welcome to the forum.

I've had a Halifax Reward account for a few years now with no major complaints. If you can pay in the £1,000 pcm then the £5 each month will help reduce the overdraft.

The only catch I can foresee is that there is no obligation on Halifax to provide you with any overdraft at all when you open the new account. I am not aware of the £15 per month cap on overdraft fees either.

It is possible the bank is trying to flog you one of their Ultimate Reward current accounts which cost a minimum of £10 per month (£15 if you don't pay in £1,000 in the previous month).

My advice - proceed with caution until you have clarified the facts to your satisfaction.

rb10

Consumerist wrote: »

The only catch I can foresee is that there is no obligation on Halifax to provide you with any overdraft at all when you open the new account.

It's unlikely to be a new account - you should be able to upgrade your existing account to a Reward account. So the overdraft, sort code and account number will all remain exactly as they were before.

Watson90

Thanks for your replies, I think the switch will just be an upgrade rather than a whole new account.

I get paid over £1,000/Month so the account does suit my needs.

@Consumerist - Yeah the man on the phone said "We can cap your overdraft at £15 so if you go over 15 days of bring in your overdraft (getting charged £1 per day) then it doesn't matter. Also you get £5 cashback each month, which means that you will have a cap of £10 basically".

I think I will arrange a meeting with him/her and ask the questions that are on my mind about it. I will be paying my OD off in January anyway so I will just end up getting £5 back each month.

Thanks again guys :beer:

snowleopard61

I'm attracted by this account too, solely for the purpose of the initial reward, but I don't really want to move from NatWest because I like the way it's organised and I like the particular way their online information is set out. Does anyone know what would happen if I changed for just long enough to bag the £100 and then changed back again?!

ETA: Or alternatively, what is the minimum I could change to open the account and get the benefits, without giving up my Natwest account?

psychic_teabag

I think Halifax expects you to switch your salary, plus at least a couple of D/D's. I don't think you have to close the original account.

Can you just set up a standing order to push your salary back to NatWest as soon as it's paid, leaving enough to cover the D/D's at Halifax ?

Consumerist

From the <Halifax website> :-

The £100 switching offer
To get your £100, you will need to:

• be a new Halifax bank account customer
• agree to switch to us using our online application form between 22nd October and midnight on 2nd December 2012
• transfer your active direct debits and other regular payments

Your £100 will be paid directly into your new Halifax current account, once we start your switch, and appear as a cash credit.
Switching to us means transferring all of your active direct debits (a minimum of two, otherwise we have the right to claim back the £100) and other regular payments, plus automated credits, e.g. your salary, into your new Halifax current account.

You don't have to actually close the NatWest account - just transfer automated payments (DDs & standing orders) & salary.

sweetilemon

Sounds like its the ultimate reward account. Its not that the fees will be capped, it means you'll be charged £15 per month, potential £300 interest free overdraft and £5 reward if £1000 per month paid in. So aslong as they accept your overdraft request and you pay in 1000+ and don't go over an agreed* £300 OD it will cost £10pm.