Changes to Reward and Ultimate Reward Accounts

paddy29

Why do so many people on this thread sound like they work in the press office for Halifax?

Is this not meant to be a consumer site? If you are happy getting shafted by bailed out banks then fine, but why come on here and tell others they should be happy as well. All the twisting of words does not change the fact that currently I pay Halifax £10 a month, I get paid no credit interest but have the use of a £300 o/d fee free o/d and from May I will need to pay £5 to use that o/d.

I am angry they have done this, as are others. It's very simple.

GooliesOfFire

Some probably do work for Halifax

Katiehound wrote: »

We know that there is pretty much no such thing as being rewarded for loyalty these days. Just be a good "interest/reward tart" instead!!

I know that too. I was nowhere near as long with Halifax as you with Natwest but it's be the longest ever I've been with any bank.

But I've been with Nationwide almost as long. I'm still quite young.

In general I'm fed up with banks and their greed. I almost completely moved my finances to building societies: a mortgage + current account + savings account with Nationwide Building Society, current account with Norwich & Peterborough Building Society, savings account with Yorkshire Building Society.. They don't give you better or worse deals than banks but at least I feel better that I support a mutual financial organisation. It's an illusive comfort a bit like a disease you can choose between.. one is worse than the other lol.

The only bank I'm with is Barclays (Barclaycard) because no building society can offer me a better low % rate credit card.

Gromitt

How do Halifax work out the URCA? Do they charge £15 and then credit £5 at the beginning of the month, or do they charge either £10 or £15 depending if you are funding the account or not?

I don't think I'm being shafted, I'm unable to get a better return on my instance access funds that what I've got now. I just take advantage of what is available: 18K @ 4% c/o TSB, 15K @ 3% c/o BoS, 20K @ 3% c/o Santander, Halifax £5/month, Nationwide Flexclusives, etc.

rb10

Gromitt wrote: »

How do Halifax work out the URCA? Do they charge £15 and then credit £5 at the beginning of the month, or do they charge either £10 or £15 depending if you are funding the account or not?

They will charge £10 if you meet the conditions, £15 if you don't.

So from May, it'll essentially be that you can pay £10 to get the list of benefits that they provide, or £15 to get that plus a £300 overdraft with no usage fees.

Gromitt

So how does it work with regards to tax? If you are on the 40% tax bracket and only paying £10/month, then no interest is being received and so HMRC don't get a penny, but if you use the reward account, you get £6.25 gross, so HMRC get £2.50. Doesn't seem right?

rb10

Gromitt wrote: »

So how does it work with regards to tax? If you are on the 40% tax bracket and only paying £10/month, then no interest is being received and so HMRC don't get a penny, but if you use the reward account, you get £6.25 gross, so HMRC get £2.50. Doesn't seem right?

There are no tax implications at all on the URCA, since there is no interest or reward payment - discounted fees are not taxable.

zerog

With the Santander DD, if you have told them to take the DD automatically every month on the form, can you change the amount and dates via online banking (as opposed to calling up)? How about if you set it to manual DD?

innovate

rb10 wrote: »

There are no tax implications at all on the URCA, since there is no interest or reward payment - discounted fees are not taxable.

The fivers are £6.25 minus 20% basic rate tax withheld.

This payment is ‘net’ of income tax, which means we pay it after taking off income tax at the rate set by law (currently 20%). If you’re a higher-rate taxpayer, you may have to pay extra income tax on the reward payment. (The gross amount is £6.25. This is the amount before income tax is taken off.

Source: http://www.halifax.co.uk/bankaccounts/rates-rewards-fees/

innovate

Gromitt wrote: »

So how does it work with regards to tax? If you are on the 40% tax bracket and only paying £10/month, then no interest is being received and so HMRC don't get a penny, but if you use the reward account, you get £6.25 gross, so HMRC get £2.50. Doesn't seem right?

I don't have an URCA but I believe they charge £15 regardless for it. Then if you qualify, you get the (taxed at basic rate) fiver.

If you are doing a tax return, you would include the fivers in the net interest you got paid.

If you are not doing a tax return (extremely unlikely if you are not a basic rate payer), you would have to notify HMRC separately (alongside all the other savings interest you might have received).

innovate

zerog wrote: »

With the Santander DD, if you have told them to take the DD automatically every month on the form, can you change the amount and dates via online banking (as opposed to calling up)?

I have not seen such a function online

zerog wrote: »

How about if you set it to manual DD?

You can then pay however much you like whenever you like, aganist that DD.

It's not easy to find - - - on the main page in your online banking, on the left, under "Quick Transfer", select "Transfer from External accounts". From thereon, it should be self-explanatory.