Getting £175 from Halifax as a non-income tax payer (especially students)

leon2_2

Halifax's 'Reward Current Account' offers £5 (net of income tax) per month and also an extra one-off £100 for those who switch to them from another bank.

To be eligible for this reward, you have to:

• pay in £750+ per month,
• have at least two direct debit mandates paid each month,
• be in credit by the end of every day in that month.

My questions are:

• Would I get 2 months' worth of rewards if I were to deposit £750 in month 1 and withdraw it to deposit it into month 2?
• Is there a difference, in definition or procedure, between setting up a 'direct debit' and 'direct debit mandate'?
• Is it possible to apply for the £6.25 gross reward if I do not pay income tax?

Thanks!

jimjames

You don't need to leave any money in the account other than that to pay any DD. Move it in and out on same day.

Far better to leave the £750 in a tsb account to get 5%. Combine that with Halifax and you'll be able to get equivalent of 12.5% on £1000.

Archi_Bald

leon2 wrote: »

• Is it possible to apply for the £6.25 gross reward if I do not pay income tax?

There is nothing in the T&Cs that suggests you can get the reward paid gross, and ex-Halifax employees posting on here say Halifax cannot accept R85s for the reward. You can theoretically make a complex claim for your £15 (or parts of it) directly with the HMRC at the end of the tax year but it's best to just settle for £60 pa.

eskbanker

leon2 wrote: »

Is there a difference, in definition or procedure, between setting up a 'direct debit' and 'direct debit mandate'?

Not sure I really understand your question but the key words you need to be focusing on are 'paid each month', i.e. the DDs you set up (via a mandate) need to pay out each month in order to qualify for the reward payment.

Ed-1

leon2 wrote: »

Halifax's 'Reward Current Account' offers £5 (net of income tax) per month and also an extra one-off £100 for those who switch to them from another bank.

To be eligible for this reward, you have to:

• pay in £750+ per month,
• have at least two direct debit mandates paid each month,
• be in credit by the end of every day in that month.

My questions are:

• Would I get 2 months' worth of rewards if I were to deposit £750 in month 1 and withdraw it to deposit it into month 2?
• Is there a difference, in definition or procedure, between setting up a 'direct debit' and 'direct debit mandate'?
• Is it possible to apply for the £6.25 gross reward if I do not pay income tax?

Thanks!

You can claim back the tax deducted from HMRC using an R40 form at the end of the tax year, but you cannot register the account for gross 'interest' with Halifax as the reward payment is not interest, it is a 'reward'.

Eco_Miser

leon2 wrote: »

Is there a difference, in definition or procedure, between setting up a 'direct debit' and 'direct debit mandate'?

In normal usage they are the same thing, but there is a small difference, in that a 'direct debit mandate' (the instruction) could generate a weekly or fortnightly 'direct debit' (the payment), as well as the more usual monthly direct debit. In such a case Halifax would only count this as one direct debit.