Halifax Reward Account changing to £3 charge with “lifestyle rewards”

JustAnotherSaver

YorkshireBoy said:

I think there's more than enough information in this thread, and much of it early on, for you to understand the options...but for some reason you can't.

You can keep your £5K in BoS, or anywhere else, at 1.2% and get roughly £5 / mth interest.
Or you can keep your £5K in Halifax and get a £5 / mth Reward.
Broadly the same, Yes?
But drop below £5K at Halifax for even one day and you forfeit the whole £5 for that month, whereas you might lose a few pence by doing the same at BOS.

Now if funding a savings account with a debit card works, and we don't know yet if it will, you can have almost £10 / mth, thereby doubling your return on your £5K...per account!

Now surely you can see you're not in a position yet to decide whether to close down Halifax?
Tell me you now get it...please.

Why do i get it after you've said then and not when others have said?

I dunno, maybe you have more patience which helped. Who knows.

The £5k with Halifax wouldn't be an issue. I don't use the account anyway, or rather i do but i have set direct debits on them to meet the requirement. I'd just remove those. So £5k in would remain £5k throughout.

I wouldn't be surprised if the funding a savings account thing didn't work but who knows.

Giammy85

i am thinking to use Revolut or Paypal to make the 500£ spending

King_Of_Fools

Elderone said:

I'm a BR taxpayer but am over the personal savings allowance. Sorry but is maintaining the  5K balance ideal for my situation?

The PSA is of no relevance here because the £5 reward is not classed as interest but as income. So as a BR taxpayer you will get to keep the whole £5 as £1.25 tax has already been paid by the Halifax.

Fingerbobs

King_Of_Fools said:

Elderone said:

I'm a BR taxpayer but am over the personal savings allowance. Sorry but is maintaining the  5K balance ideal for my situation?

The PSA is of no relevance here because the £5 reward is not classed as interest but as income. So as a BR taxpayer you will get to keep the whole £5 as £1.25 tax has already been paid by the Halifax.

It is very relevant if you earn more than the PSA. It means the "effective" interest of 1.2% on that 5k won't be taxed, whereas if you had that £5k in a traditional savings account paying interest, it would be.

King_Of_Fools

Fingerbobs said:

It is very relevant if you earn more than the PSA. It means the "effective" interest of 1.2% on that 5k won't be taxed, whereas if you had that £5k in a traditional savings account paying interest, it would be.

But the gross "effective" interest rate is 1.5% and it is taxed at 20% at source whether you are over your PSA or not.

soulsaver

If you're a basic rate tax payer NOT exceeding the PSA you get £60 pa - equivalent 1.2% interest on £5k.
If you're a basic rate tax payer exceeding the PSA you get £60 pa br tax paid which is the equivalent of £75 less 20% tax so equivalent of 1.5% interest on £5k .

TOP_CAT

Too early too know unless you have a crystal ball .

colsten

TOP_CAT said:

Too early too know unless you have a crystal ball .
I would think the  less noise made about it the better its going to be for you ,me and anyone else I would assume .
You can be certain if the rug is pulled out from under us your going to hear all about it though .
Until that point it may pay too play the grey man treading lightly and not highlight it .

In case anyone is wondering - TOP_CAT's post refers to a post which has since been deleted, and is spot on. Many thanks to the poster who took off their post 

Super_Stomper

In case anyone is wondering - TOP_CAT's post refers to a post which has since been deleted, and is spot on. Many thanks to the poster who took off their post 

Ooooh! How do you delete a post you've submitted, please? I'm sure we could all do with that useful piece of information for when we've been a bit silly. 

General_Grant

Super_Stomper said:

In case anyone is wondering - TOP_CAT's post refers to a post which has since been deleted, and is spot on. Many thanks to the poster who took off their post 

Ooooh! How do you delete a post you've submitted, please? I'm sure we could all do with that useful piece of information for when we've been a bit silly. 

Try clicking on the cog wheel on the right in the blue area showing your posting time.  Then select Delete rather than Edit.