Halifax Reward payment being cut

nobler

Hi, does anyone know if there were any conditions attached the Halifax switching bonus (especially when it was £125) about how long you have to keep the account open for? I am wondering whether I need to keep it for at least 6 months (or something like that) before switching away. Can't see any requirements of that nature in the T&Cs for current switching offer of £75, but wondering if tucked away?!
Thanks

pochisoldi

latinaid wrote: »

Yes, I was looking at that. Why do they deduct tax? Is it because it's a reward but not interest? How do Barclays do it?

It's down to the terms and conditions:
Barclays:
"Receive a £3.50 reward for each of your first 2 Direct Debit payments, up to £7 each month. You!!!8217;re eligible for this reward if the Direct Debits are successfully paid from your chosen current account."

Halifax:
"You can earn £3 each month when throughout the previous calendar month you:

• pay in £750 or more and;
• pay out a minimum of 2 different direct debits and;
• stay in credit."

With Barclays each payment is effectively a one-off repayment of £3.50 in respect of each direct debit, and is not taxable, in the same way that 1% cashback on personal credit card spending isn't taxable.

With Halifax there are three conditions and the reward is paid under an legal agreement that if the account holder does X,Y and Z, then Halifax will pay £3.

A better scheme would be to charge £3 (like Barclays rewards), and then pay £2.50 for each direct debit. Net cost to Halifax: £2. Net benefit to account holder £2.

To be honest, over the last 12 months, the Halifax Cashback Extras scheme has been far more profitable - especially when you get 5 or 10% cashback on a debit card spend at a supermarket which does £50 cashback at the till

mije1983

pochisoldi wrote: »

To be honest, over the last 12 months, the Halifax Cashback Extras scheme has been far more profitable - especially when you get 5 or 10% cashback on a debit card spend at a supermarket which does £10 cashback at the till

The only supermarket offer I have had was 1 Morrisons one. 15% off which was good, but no Morrisons within 20 miles of me so not so good :rotfl:

NoviceAngel

Gutted by this, I have four reward accounts, it was bad enough last time when they dropped from £5 to £3 but now to £2!:mad:

Is there an official MSE story about this, I didn’t read it in the MSE newsletter unless I missed it somehow?

There has been a pattern recently first Santander 123, then Nationwide with flex direct, I use to change it to a flex account for 12 months after the interest cut from 5%, then after 12 months change it back again but they won’t let you do that anymore.

Are there any decent accounts left? I’m really struggling to think of any.

wizzywig27

NoviceAngel wrote: »

Is there an official MSE story about this, I didn’t read it in the MSE newsletter unless I missed it somehow?

Yes, here

aj23_2

NoviceAngel wrote: »

Gutted by this, I have four reward accounts, it was bad enough last time when they dropped from £5 to £3 but now to £2!:mad:

Is there an official MSE story about this, I didn’t read it in the MSE newsletter unless I missed it somehow?

There has been a pattern recently first Santander 123, then Nationwide with flex direct, I use to change it to a flex account for 12 months after the interest cut from 5%, then after 12 months change it back again but they won’t let you do that anymore.

Are there any decent accounts left? I’m really struggling to think of any.

Nationwide:
5% fixed Flexdirect 12 month up to £2500 (about £125)
5% variable regular saver 12 month (about £80)
If you know a friend with a nationwide current account, get them to recommend you and you'll both get £100.

So, over 12 month, you'd get about £305. You won't get that from any other current account provider if you factoring all three in.

NoviceAngel

aj23 wrote: »

Nationwide:
5% fixed Flexdirect 12 month up to £2500 (about £125)
5% variable regular saver 12 month (about £80)
If you know a friend with a nationwide current account, get them to recommend you and you'll both get £100.

So, over 12 month, you'd get about £305. You won't get that from any other current account provider if you factoring all three in.

My Nationwide flex direct is now over 12 months so the rate has dropped. I did manage to recommend a friend - I only have one lol

I do the 5% regular saver though, that’s still worth doing. Virgin Money keep releasing a new issue of their regular saver every month or so and you can save £250 a month rate is only 2.25% but if your lucky enough to have regular savings to drip feed them, it’s worth doing.

I agree though, not much out there for us savers at the mo.

ValiantSon

NoviceAngel wrote: »

My Nationwide flex direct is now over 12 months so the rate has dropped. I did manage to recommend a friend - I only have one lol

I do the 5% regular saver though, that’s still worth doing. Virgin Money keep releasing a new issue of their regular saver every month or so and you can save £250 a month rate is only 2.25% but if your lucky enough to have regular savings to drip feed them, it’s worth doing.

I agree though, not much out there for us savers at the mo.

There are other regular savers at 5% available from the following:

Santander - £200 p/m (requires Santander 123; or 123 Lite; or 123 credit card)
HSBC - £250 p/m (requires HSBC Advance)
First Direct - £250 p/m (requires First Account)
M&S Bank - £250 p/m (requires M&S Account)

If you still have money left to save every month after that £1,200 (including your Nationwide regular saver), then you could look at:

Club Lloyds - 3% on £400 p/m (requires Club Lloyds account).

You also have options for fixed rate savings, with the best one year rate having recently reached 2.1% (Hampshire Trust Bank), or 1.4% is the best rate for an easy access account (Coventry Building Society).

What is it that you are specifically looking for?

ValiantSon

nobler wrote: »

Hi, does anyone know if there were any conditions attached the Halifax switching bonus (especially when it was £125) about how long you have to keep the account open for? I am wondering whether I need to keep it for at least 6 months (or something like that) before switching away. Can't see any requirements of that nature in the T&Cs for current switching offer of £75, but wondering if tucked away?!
Thanks

There were no minimum term conditions on the offer. I kept the account for a week, before switching it again to a better option.

NoviceAngel

ValiantSon wrote: »

There are other regular savers at 5% available from the following:

Santander - £200 p/m (requires Santander 123; or 123 Lite; or 123 credit card)
HSBC - £250 p/m (requires HSBC Advance)
First Direct - £250 p/m (requires First Account)
M&S Bank - £250 p/m (requires M&S Account)

If you still have money left to save every month after that £1,200 (including your Nationwide regular saver), then you could look at:

Club Lloyds - 3% on £400 p/m (requires Club Lloyds account).

You also have options for fixed rate savings, with the best one year rate having recently reached 2.1% (Hampshire Trust Bank), or 1.4% is the best rate for an easy access account (Coventry Building Society).

What is it that you are specifically looking for?

I generally withdraw from savings every month and make the most of the regular saver accounts,

I have the Santander, M & S and Club Lloyd’s even the Halifax.

I got declined for a HSBC advance account! Credit score at 988 on Experian so I was shall we say somewhat annoyed

Most of my savings are in an ISA, complicated but it works for me, the slush just stays in Tesco at 1.35% so it’s that slush that I’m churning around to make the most of.

I’m doing things reasonably well, it’s just not a savers market, I’m old enough to remember the Newcastle building Society giving me 13.55% on a 90 day notice account - I’m showing my age now lol