Halifax Regular Saver - rate increase

ForumUser7

metrobus said:

Is it £250 per calendar month?

The T&Cs says the money needs to be deposited  by the 25th of each month, so does anything deposited after that count towards the next months £250 allowance?
Thank You.

It is per calendar month, but bear in mind Standing orders are only processed on weekdays. They say 25th to allow time for these to process in case of bank holidays/weekends etc.

Best practice is to set up a standing order/do a manual transfer on the 1st of each calendar month imo

AmityNeon

metrobus said:

Is it £250 per calendar month?

The T&Cs says the money needs to be deposited  by the 25th of each month, so does anything deposited after that count towards the next months £250 allowance?
Thank You.

It is per calendar month. In this case (along with Lloyds and Bank of Scotland), you can ignore this part of the T&Cs. The month in which deposits are credited to the account is the month to which contributions apply.

allegro120

VXman said:

I'm not sure I can be bothered with these regular savers any more. Even at 5.5% what's the real annual rate taking into account that most of the money will not be there for a year and you are limited in how much you can put in.

I've put most of my savings into Chip instant access at 3.4%

4.53% if you drip-feed from 3.4%. 

pearl123

Re: Halifix - just close a regular saver and open a new one? Is that the system, rather than re-newing. I'm four months  in. 

VXman

Band7 said:

VXman said:

flaneurs_lobster said:

VXman said:

I'm not sure I can be bothered with these regular savers any more. Even at 5.5% what's the real annual rate taking into account that most of the money will not be there for a year and you are limited in how much you can put in.

I've put most of my savings into Chip instant access at 3.4%

It's because 5.5% is greater than 3.4%. 

If, as you say, you can't be bothered then the overheads involved with setting up and funding these regular savers probably means they are not for you. 

Others clearly differ.

It is a restricted time account. E.g Your last payment of £300 will not get 5.5 % APR. It will get 11/12ths of 5.5%% Only month one will get 5.5% for the year.

I don't really understand what you mean by 'overheads' . I do have a few of these accounts. 2 with First direct, 4 with Lloyds, 1 with HSBC. I just don't think it's worth the hassle of starting a new Halifax one to gain a proportion of a 1% increase.

https://becleverwithyourcash.com/regular-savings-accounts-explained/

Each and every penny in your account will get 5.5%, or whatever the AER of an RS is, for each and every day the money is in the account. The daily rate is AER divided by 365.

Any money that's deposited for 365 days will get 365 times the daily rate.
Any money that's deposited for just 1 days will get 1 times the daily rate

The same principle obviously also applies to the interest calculation of an instant access account. 

Yes. Thanks for stating the obvious. Clearly you are not really getting my point (or not wishing to acknowledge it) but like the the interest on a regular savers account it's not really worth arguing about.

flaneurs_lobster

VXman said:

Yes. Thanks for stating the obvious. Clearly you are not really getting my point (or not wishing to acknowledge it) but like the the interest on a regular savers account it's not really worth arguing about.

Then perhaps you could try making your point in a different way because I (and I think several others) are not getting it either.

Explain why putting money into an account paying 3.4% is better than putting money into an account paying 5.5%.

IanManc

VXman said:

Band7 said:

VXman said:

flaneurs_lobster said:

VXman said:

I'm not sure I can be bothered with these regular savers any more. Even at 5.5% what's the real annual rate taking into account that most of the money will not be there for a year and you are limited in how much you can put in.

I've put most of my savings into Chip instant access at 3.4%

It's because 5.5% is greater than 3.4%. 

If, as you say, you can't be bothered then the overheads involved with setting up and funding these regular savers probably means they are not for you. 

Others clearly differ.

It is a restricted time account. E.g Your last payment of £300 will not get 5.5 % APR. It will get 11/12ths of 5.5%% Only month one will get 5.5% for the year.

I don't really understand what you mean by 'overheads' . I do have a few of these accounts. 2 with First direct, 4 with Lloyds, 1 with HSBC. I just don't think it's worth the hassle of starting a new Halifax one to gain a proportion of a 1% increase.

https://becleverwithyourcash.com/regular-savings-accounts-explained/

Each and every penny in your account will get 5.5%, or whatever the AER of an RS is, for each and every day the money is in the account. The daily rate is AER divided by 365.

Any money that's deposited for 365 days will get 365 times the daily rate.
Any money that's deposited for just 1 days will get 1 times the daily rate

The same principle obviously also applies to the interest calculation of an instant access account. 

Yes. Thanks for stating the obvious. Clearly you are not really getting my point (or not wishing to acknowledge it) but like the the interest on a regular savers account it's not really worth arguing about.

Getting 5.5% on your money is better than getting 3,4%, and no savings accounts pay interest for the time that money isn't in the account, only for the time that it is in the account.

I don't think you've got a point for people to get. 

AmityNeon

VXman said:

I just don't think it's worth the hassle of starting a new Halifax one to gain a proportion of a 1% increase.

If this is your point, i.e. closing a 4.5% account and restarting at 5.5%, it may be true, depending on an individual's circumstances.

I wouldn't call it, or any Regular Saver, a 'proportion' of headline interest though. Interest is calculated daily, and for easy access savings, rarely will a set amount of cash stay in the same account earning the same daily rate for an entire 12 months, so it's just a case of maximising overall daily interest irrespective of arbitrary durations. In 12 months' time, your overall interest received from Chip in the previous 12 months would not equal 3.4%.

subjecttocontract

Well I'm 6 months into a Halifax 4.5% reg saver and have decided to leave it as it is. No doubt there will be plenty of other s that make the opposite choice.

phillw

subjecttocontract said:

Well I'm 6 months into a Halifax 4.5% reg saver and have decided to leave it as it is. No doubt there will be plenty of other s that make the opposite choice.

Me too, though I have a 0% purchase credit card ending in a couple of months and I might decide to pay that off and restart the regular savers.