Halifax vs Lloyds

ZaKNaFeiN

Hi, just doing some basic math, but does Halifax 'pay' more interest?

Halifax = £100 (joining) + £5/month = £160 in first year (after tax)
Lloyds (assuming save £5k) = 3%*5k = £150 (pre tax)

I guess opening Halifax for the first year, then switching to Lloyds seems the best bet, but just wanted to make sure I'm not missing anything obvious.

Additional perks - Halifax seems to have this Clarity credit card to get an additional £5 a month if you spend more than £300 on it.

What are ppl's experiences with both these banks? I currently have an HSBC and want to switch as the rates are quite poor there.

pinkdalek

Why not have both?
There's no guarantee that either bank will offer this product in a years time.

Might be fiddly at first as I know with the Halifax offer you have to move all direct debits. Think on the LTSB account you need to have some direct debits. If that is the case why not open the LTSB one, switch a couple of direct debits to that, then get Halifax to switch the rest? And just move £1000 between the two banks.

Only issue is the £100 offer ends this weekend with Halifax so get your skates on!

psychic_teabag

ZaKNaFeiN wrote: »

Hi, just doing some basic math, but does Halifax 'pay' more interest?

Halifax = £100 (joining) + £5/month = £160 in first year (after tax)
Lloyds (assuming save £5k) = 3%*5k = £150 (pre tax)

You're not comparing like with like. You only have to have the £1k in Halifax for a few minutes to earn £5. With Lloyds you have to give them £5k for a whole month to earn your interest.

If you have £5k spare, you should consider what interest it could earn elsewhere. Assuming you can get around 2.5%, that's about £10 per month pre-tax, in addition to the reward you'd get from Halifax. Making Halifax the better deal even without the joining fee.

You could consider also the Santander 123 account. Can get around £50 from quidco or topcashback as an opening bonus. It also pays 3% interest on balances over £3k. There is a £2 monthly fee, but for many of us the cashback from bill D/D's more than covers that.

psychic_teabag

pinkdalek wrote: »

Think on the LTSB account you need to have some direct debits.

For the recent 4% promotion they were running, you needed a couple of D/D's. But I don't think that's needed for the standard 3% rate.

rb10

Also note that the Halifax £5 reward is not just for the first year - it's an ongoing benefit that (unless there's a change to the T&Cs), will continue for as long as you continue to pay in £1k per month.