Halifax Regular Saver - rate increase

allegro120

ForumUser7 said:

Chaykin said:

It would be nice if Lloyds/Halifax/Bank of Scotland applied the higher interest rate to all existing regular savers - like First Direct did...

What about if for some reason, someone wanted the original expected interest? 

Very hard to imagine anyone complaining about getting more interest than promised

MDMD

allegro120 said:

ForumUser7 said:

Chaykin said:

It would be nice if Lloyds/Halifax/Bank of Scotland applied the higher interest rate to all existing regular savers - like First Direct did...

What about if for some reason, someone wanted the original expected interest? 

Very hard to imagine anyone complaining about getting more interest than promised

In edge cases if someone is on the border of the 40% rate band, £1 of interest can cause them to lose £500 of the nil rate band (aka PSA) and be potentially stung for hundreds in tax due to this £1 of interest.

Also High income child benefit charge can be triggered for some and although both can be potentially mitigated by pension contributions they need to actively do it.

ForumUser7

allegro120 said:

ForumUser7 said:

Chaykin said:

It would be nice if Lloyds/Halifax/Bank of Scotland applied the higher interest rate to all existing regular savers - like First Direct did...

What about if for some reason, someone wanted the original expected interest? 

Very hard to imagine anyone complaining about getting more interest than promised

I certainly wouldn't, but I couldn't remember the reasons people gave. @MDMD has hit the nail on the head though, I knew it was something tax related

fly-catchers

Chaykin said:

It would be nice if Lloyds/Halifax/Bank of Scotland applied the higher interest rate to all existing regular savers - like First Direct did...

The last regular saver i had with the Nationwide where it started at 2% And eventually ended at 3.5% near the end. 

phillw

Bridlington1 said:
Also many will be in a position to have all their EA savings in higher paying accounts. I am currently in a position where I can pay close to £10k/mth into regular savers that pay more than chip at 3.4% and from next month I'll be emptying lower paying regular savers into higher ones, which tips the balance more towards being better off renewing now.

Moreover some (myself included) grabbed notice accounts that track the base rate, in my case Mansfield's 90 day notice account at 4%, which I imagine will stay competitive for the rest of the Halifax regular saver term so for me the maths seems to suggest I should renew. I have emptied both Halifax and BOS into Mansfield where it will stay for a bit.

Some of us aren't show offs.

A 90 day access account isn't easy access. So you can't have all your ea in higher paying accounts.

ForumUser7

fly-catchers said:

Chaykin said:

It would be nice if Lloyds/Halifax/Bank of Scotland applied the higher interest rate to all existing regular savers - like First Direct did...

The last regular saver i had with the Nationwide where it started at 2% And eventually ended at 3.5% near the end. 

Was it a variable rate though?

Bridlington1

phillw said:

Bridlington1 said:
Also many will be in a position to have all their EA savings in higher paying accounts. I am currently in a position where I can pay close to £10k/mth into regular savers that pay more than chip at 3.4% and from next month I'll be emptying lower paying regular savers into higher ones, which tips the balance more towards being better off renewing now.

Moreover some (myself included) grabbed notice accounts that track the base rate, in my case Mansfield's 90 day notice account at 4%, which I imagine will stay competitive for the rest of the Halifax regular saver term so for me the maths seems to suggest I should renew. I have emptied both Halifax and BOS into Mansfield where it will stay for a bit.

Some of us aren't show offs.

A 90 day access account isn't easy access. So you can't have all your ea in higher paying accounts.

I wouldn't call it showing off, but merely using my own circumstances as an example to illustrate my point. My point being that for some people who are approaching the half way mark of their regular saver term, renewing could still be worth it because they have enough regular savers elsewhere paying north of 3.4% to absorb the £1.5k plus interest already in the Halifax regular saver at a stroke, meaning that instead of having a load of money in an EA account at 3.4%, the money goes into regular savers at a higher rate. As a result it is not just a straight choice of keeping the Halifax regular saver as it is or renewing and putting the money into an EA account, but other types of accounts will fit the bill depending on your circumstances.

In a similar vein I never claimed a 90 day notice account was an easy access account but instead that you would likely be better off interest wise placing the contents of the regular saver into a 4% notice account and renewing it, rather than leaving the Halifax regular saver at 4.5%. With the notice account if need be you can just put in notice to withdraw shortly after depositing the money to make the funds available in time for redepositing into the regular saver.

You are correct though in that I do not have all of my EA savings in higher paying accounts. I've still got some savings in Chip but next month all of this money will be paid into regular savers so from that point  on with the exception of some EA accounts I have with minimal balances, I shall have all of my easy access savings in higher paying accounts. 

In case I never made my original post clear enough I am not saving close to £10k/mth out of my income but merely have enough regular savers to make nearly £10k worth of deposits into them, which I am funding from my existing EA savings accounts and maturing regular savers. My income is under £15k/yr including student maintenance loan and bursary so I was not bragging about my income if that is what you were alluding to.

Bridlington1

Bridlington1 said:

phillw said:

TheAble said:
If closing early would mean loss of interest accrued then you made the right choice. The extra 1% at 5.5% over 6 months wouldn't be sufficient to net you back what you'd given up.

You don't lose the interest you've accrued (at least AFAIK) but even so, six months in and the difference from 3.40 to 4.5 is greater than 4.5 to 5.5 & with easy access rates as they are then it's not worth it. I doubt chip is going to move rates in the next six months.

It's complicated because obviously you will be in the same position when it ends naturally with a load of money in a 3.40% account, but it's possible that someone is using one to pay off a credit card that needs repaying at a specific time.

Also many will be in a position to have all their EA savings in higher paying accounts. I am currently in a position where I can pay close to £10k/mth into regular savers that pay more than chip at 3.4% and from next month I'll be emptying lower paying regular savers into higher ones, which tips the balance more towards being better off renewing now.

Moreover some (myself included) grabbed notice accounts that track the base rate, in my case Mansfield's 90 day notice account at 4%, which I imagine will stay competitive for the rest of the Halifax regular saver term so for me the maths seems to suggest I should renew. I have emptied both Halifax and BOS into Mansfield where it will stay for a bit.

Right scrap that, Lloyds, Halifax and BOS have decided to close all my accounts on 18th May so it looks like I'd have been better off sticking at 4.5% after all.

Vortigern

Bridlington1 said:

Bridlington1 said:

phillw said:

TheAble said:
If closing early would mean loss of interest accrued then you made the right choice. The extra 1% at 5.5% over 6 months wouldn't be sufficient to net you back what you'd given up.

You don't lose the interest you've accrued (at least AFAIK) but even so, six months in and the difference from 3.40 to 4.5 is greater than 4.5 to 5.5 & with easy access rates as they are then it's not worth it. I doubt chip is going to move rates in the next six months.

It's complicated because obviously you will be in the same position when it ends naturally with a load of money in a 3.40% account, but it's possible that someone is using one to pay off a credit card that needs repaying at a specific time.

Also many will be in a position to have all their EA savings in higher paying accounts. I am currently in a position where I can pay close to £10k/mth into regular savers that pay more than chip at 3.4% and from next month I'll be emptying lower paying regular savers into higher ones, which tips the balance more towards being better off renewing now.

Moreover some (myself included) grabbed notice accounts that track the base rate, in my case Mansfield's 90 day notice account at 4%, which I imagine will stay competitive for the rest of the Halifax regular saver term so for me the maths seems to suggest I should renew. I have emptied both Halifax and BOS into Mansfield where it will stay for a bit.

Right scrap that, Lloyds, Halifax and BOS have decided to close all my accounts on 18th May so it looks like I'd have been better off sticking at 4.5% after all.

What do you think has caused them to close your accounts? These are not the accounts where you've been doing multiple small transactions, are they?

Bridlington1

Vortigern said:

Bridlington1 said:

Bridlington1 said:

phillw said:

TheAble said:
If closing early would mean loss of interest accrued then you made the right choice. The extra 1% at 5.5% over 6 months wouldn't be sufficient to net you back what you'd given up.

You don't lose the interest you've accrued (at least AFAIK) but even so, six months in and the difference from 3.40 to 4.5 is greater than 4.5 to 5.5 & with easy access rates as they are then it's not worth it. I doubt chip is going to move rates in the next six months.

It's complicated because obviously you will be in the same position when it ends naturally with a load of money in a 3.40% account, but it's possible that someone is using one to pay off a credit card that needs repaying at a specific time.

Also many will be in a position to have all their EA savings in higher paying accounts. I am currently in a position where I can pay close to £10k/mth into regular savers that pay more than chip at 3.4% and from next month I'll be emptying lower paying regular savers into higher ones, which tips the balance more towards being better off renewing now.

Moreover some (myself included) grabbed notice accounts that track the base rate, in my case Mansfield's 90 day notice account at 4%, which I imagine will stay competitive for the rest of the Halifax regular saver term so for me the maths seems to suggest I should renew. I have emptied both Halifax and BOS into Mansfield where it will stay for a bit.

Right scrap that, Lloyds, Halifax and BOS have decided to close all my accounts on 18th May so it looks like I'd have been better off sticking at 4.5% after all.

What do you think has caused them to close your accounts? These are not the accounts where you've been doing multiple small transactions, are they?

In the interests of keeping this thread on topic I shall create a separate thread about this on the budgeting and bank accounts board.