Advice to renew a Halifax Regular Saver

pokora

I tried this product last year for the first time to check if I was able to set money apartin a regular basis. After this successful trial the account comes to maturity and my doubt is how to "renew" the product. 

What's the best way to maximise this account ?

• Open the account with an initial amount (example 2000) & top up each month with the maximum I can.
• Start from 0 & top up each month the maximum.
• Another alternative.

colsten

Why not YBS RS?

Are you aware of the Regular Saver thread?

refluxer

The current T&Cs for the Halifax Regular Saver account state that, on maturity, the balance will transfer to the Everyday Saver account that was opened automatically alongside the RS and the RS account will renew, so you can presumably leave any standing orders as they are and/or continue to pay in as you have been doing if you want to continue. The only exception to this is if you closed the Everyday Saver, in which case your RS will convert to one and will presumably cease.

You might want to check the T&Cs for your existing account though to confirm they're the same. I would imagine they would write or email a few weeks before the maturity date ?

I wonder if your current Halifax RS would renew at your existing rate ? If not or if it's the same as the current Halifax RS anyway @ 0.75%, then it's certainly higher than the best easy access or notice accounts at the moment but you can get higher RS interest rates elsewhere, particularly if you're a current customer of certain other banks/buildings societies. One advantage of the Halifax RS though is that the rate is fixed - many of the RS rates are variable so could drop although, admittedly, this is much less of an issue for the 'existing customer' RS accounts, where the rate is substantially higher.

You can check the top-paying RS accounts here and the Regular Saver Thread colsten linked to above is a good resource for showing all the options.

You can't normally pay lump sums into a Regular Saver and the default Halifax Everyday Saver you've got @ 0.01% is very poor, so you might want to look into alternatives for the lump sum you've collected so far. The current best savings accounts can be found here.

PRAISETHESUN

I agree that if you like the regular saver type of accounts, you should check out the thread linked by @colsten. You won't be able to deposit a lump sum, so you'll probably also want to have a look at a good current/savings account to keep your money in as you drip feed it back into your RS.

pokora

colsten said:

Why not YBS RS?

Are you aware of the Regular Saver thread?

I don't want variable, I prefer a locked rate knowing what I get instead of depends on what they decide each time.

Thanks, I will check which ones I can apply for.

refluxer said:

The current T&Cs for the Halifax Regular Saver account state that, on maturity, the balance will transfer to the Everyday Saver account that was opened automatically alongside the RS and the RS account will renew, so you can presumably leave any standing orders as they are and/or continue to pay in as you have been doing if you want to continue. The only exception to this is if you closed the Everyday Saver, in which case your RS will convert to one and will presumably cease.

You might want to check the T&Cs for your existing account though to confirm they're the same. I would imagine they would write or email a few weeks before the maturity date ?

I wonder if your current Halifax RS would renew at your existing rate ? If not or if it's the same as the current Halifax RS anyway @ 0.75%, then it's certainly higher than the best easy access or notice accounts at the moment but you can get higher RS interest rates elsewhere, particularly if you're a current customer of certain other banks/buildings societies. One advantage of the Halifax RS though is that the rate is fixed - many of the RS rates are variable so could drop although, admittedly, this is much less of an issue for the 'existing customer' RS accounts, where the rate is substantially higher.

You can check the top-paying RS accounts here and the Regular Saver Thread colsten linked to above is a good resource for showing all the options.

You can't normally pay lump sums into a Regular Saver and the default Halifax Everyday Saver you've got @ 0.01% is very poor, so you might want to look into alternatives for the lump sum you've collected so far. The current best savings accounts can be found here.

Ok, thank you. My rate will drop from 2% to the actual 0.75% or what they offer on the day.


Could i ask Why the same amount of 250/month get you different amount at the end in each bank?

TSB

Amount Saved	£3,000.00
Interest earned at 1.00% Gross/AER (fixed)	£14.16
Estimated balance after 12 Months	£3,014.16

HSBC- Total balance after 12 months

Monthly Deposits --- £250

Interest rate --- 1.00% AER (1.00% Gross)

Total deposits after 12 months --- £3,000

Balance at end of 12 months --- £3,016.25

eskbanker

pokora said:

Could i ask Why the same amount of 250/month get you different amount at the end in each bank?

TSB

Amount Saved	£3,000.00
Interest earned at 1.00% Gross/AER (fixed)	£14.16
Estimated balance after 12 Months	£3,014.16

HSBC- Total balance after 12 months

Monthly Deposits --- £250

Interest rate --- 1.00% AER (1.00% Gross)

Total deposits after 12 months --- £3,000

Balance at end of 12 months --- £3,016.25

You'd get exactly the same regardless of which of these two you went with, assuming funding the same amounts on the same dates - the variance between these two illustrative examples will arise from different assumptions made about funding dates....

colsten

pokora said:

colsten said:

Why not YBS RS?

Are you aware of the Regular Saver thread?

I don't want variable, I prefer a locked rate knowing what I get instead of depends on what they decide each time

The choice between 3.5%, or even 3.04%, variable and 0.75% fixed should be a rather easy one. The providers don't "decide each time" but will give notice of any significant drop. The likelihood that they would drop as low as 0.75% is remote. If they drop at all. If there is any sizeable (> 0.5%?) drop, you would normally be given the option to take your money out without penalty.

If you insist on a fixed rate, there are still better rates than 0.75%, and even better than 1%.

pokora

colsten said:

pokora said:

colsten said:

Why not YBS RS?

Are you aware of the Regular Saver thread?

I don't want variable, I prefer a locked rate knowing what I get instead of depends on what they decide each time

The choice between 3.5%, or even 3.04%, variable and 0.75% fixed should be a rather easy one. The providers don't "decide each time" but will give notice of any significant drop. The likelihood that they would drop as low as 0.75% is remote. If they drop at all. If there is any sizeable (> 0.5%?) drop, you would normally be given the option to take your money out without penalty.

If you insist on a fixed rate, there are still better rates than 0.75%, and even better than 1%.

Even collecting the interest produced until that date? mmm in that case I should change of mind. Following your advice actually my best options to maximise the income will be open 3 accounts:

Natwest RS 60/month
RBS RS 60/month
Virgin Money 2.02% current account 1000

pafpcg

pokora said:

colsten said:

pokora said:

colsten said:

Why not YBS RS?

Are you aware of the Regular Saver thread?

I don't want variable, I prefer a locked rate knowing what I get instead of depends on what they decide each time

The choice between 3.5%, or even 3.04%, variable and 0.75% fixed should be a rather easy one. The providers don't "decide each time" but will give notice of any significant drop. The likelihood that they would drop as low as 0.75% is remote. If they drop at all. If there is any sizeable (> 0.5%?) drop, you would normally be given the option to take your money out without penalty.

If you insist on a fixed rate, there are still better rates than 0.75%, and even better than 1%.

Even collecting the interest produced until that date? mmm in that case I should change of mind. Following your advice actually my best options to maximise the income will be open 3 accounts:

Natwest RS 60/month
RBS RS 60/month
Virgin Money 2.02% current account 1000

All three accounts pay a variable interest rate, not a fixed rate.

The NatWest & RBS accounts require you to open current accounts and the maximum monthly payment is only £50 (not £60).

pokora

pafpcg said:

pokora said:

colsten said:

pokora said:

colsten said:

Why not YBS RS?

Are you aware of the Regular Saver thread?

I don't want variable, I prefer a locked rate knowing what I get instead of depends on what they decide each time

The choice between 3.5%, or even 3.04%, variable and 0.75% fixed should be a rather easy one. The providers don't "decide each time" but will give notice of any significant drop. The likelihood that they would drop as low as 0.75% is remote. If they drop at all. If there is any sizeable (> 0.5%?) drop, you would normally be given the option to take your money out without penalty.

If you insist on a fixed rate, there are still better rates than 0.75%, and even better than 1%.

Even collecting the interest produced until that date? mmm in that case I should change of mind. Following your advice actually my best options to maximise the income will be open 3 accounts:

Natwest RS 60/month
RBS RS 60/month
Virgin Money 2.02% current account 1000

All three accounts pay a variable interest rate, not a fixed rate.

The NatWest & RBS accounts require you to open current accounts and the maximum monthly payment is only £50 (not £60).

Well if really works as the fixed, the better rates change my mind for the time been until something better comes fixed.