Halifax 10% Regular Savings Account

sneekymum

So - Its 10% "giving an approx return of 7.5% (ignoring tax)" when used in conjunction with other accounts.................

This reminds me of "Can help you lose weight (as part of a calorie controlled diet)"...

dealseeker

Not sure I understand the terms of this account. A potential hassle as parent needs to have another account open with the Halifax on behalf of the child to sweep the cash into at the end of the year. So 2 accounts need to be open just to get some cash at this higher rate.


Will need to remember the £100 annual limit for income generated from deposits made from parents to child. The more separate account the kids have the harder it is to manage this to £99.99 per year. If tax man catches you going over the limit it can be painful .... :eek:

Martin - Looking forward to hearing how this account works in practice.

Twopints

sneekymum wrote:

So - Its 10% "giving an approx return of 7.5% (ignoring tax)" when used in conjunction with other accounts.................

This reminds me of "Can help you lose weight (as part of a calorie controlled diet)"...

Obviously the way that interest on regular savings is calculated can be difficult for some people to understand.

I think it is unreasonable to expect banks and building societies to pay interest on money that has not been deposited with them. This may make me old-fashioned but I can live with it.

The interest on this account is still 10% on THE MONEY THAT IS IN IT.

I was told by someone in the local Halifax on Saturday that it is possible for each parent of a child to open an account in trust for that child. That means you can open 2 accounts (1 parent + 1 parent = 2 accounts, I'll keep the maths simple) per child. I am trying to confirm that this is correct.

realaledrinker

Two Pints' concise explanation is better than that of the vast majority of so-called "financial journalists" I have been reading over the weekend. They almost all seem to assume people keep money under the matress when they rubbish regular savings accounts like this which "promise" 10% but "only" make you 6.5% or so over the year. Idiots, the lot of 'em.

I'll be in the queue tomorrow (unless it can be applied for on line?)

thor

I think the 'experts'(who lets face it, usually just state the obvious and somehow make a living from it) do not assume people keep money in 0% paying accounts(or under the mattress). In fact I don't believe they assume anything when they come up with their bogus reasons why regular savings accounts don't give you interest for 100% of your final deposit. They just want to look clever in the press or on tv. Actually I'm wrong cause that must mean that they assume people to be stupid and in awe of this valuable advice. The sad thing is that the public are!

BigDunc

realaledrinker wrote:

...
I'll be in the queue tomorrow (unless it can be applied for on line?)

Online applications are now possible at http://www.halifax.co.uk/savings/home.shtml

Shrimp_Stu

Only available online if you are an existing Halifax Customer – otherwise a trip to the local branch is in order.

lipidicman

I dont agree on the problem with regular savers (people saying you dont get 10%). I use them (as someone above said) to save from income (this is what they are designed for) and so I am not missing out on interest (as I didnt have the money before I deposited it). The real downer on these accounts is that they empty after a year, not that they are built up gradually. Still, just move the proceeds to your highest ordinary savings account (A&L online, or your ISA) and you have done the best you can, and that's all anyone can ask of you!

mary

You may not want to put your savings into A & L 5.35% online account as of today, as the rate has dropped. C heck out its website.

lipidicman

mary wrote:

You may not want to put your savings into A & L 5.35% online account as of today, as the rate has dropped. C heck out its website.

Thanks for this - it has dropped to 5%. Not so bad, gives me time to find a new home!