Halifax Regular Saver - auto renewal and 13th payment?

howryoo

As their regular saver now auto-renews into a new version every year, does anyone know if you could make that extra payment?  Does it even make much difference?

I note it states you can make payments into the account by standing order or bank transfer each month, and that these payments must be by the 25th.

So if your account matured 26th with interest, funds transferred automatically into their everyday saver (resetting your existing RS back to zero), are you able to pay into the account on 27th / 28th and continue with your standing order payments on 1st of each month?

For the above, the last payment would have been October 1st.  If a payment was made on 27th October, would it be deemed as 2 payments for October?

Anyone have any experience?

ColdIron

howryoo said:

As their regular saver now auto-renews into a new version every year, does anyone know if you could make that extra payment?

Yes but it's not an 'extra payment'. They are separate payments into two separate accounts

I note it states you can make payments into the account by standing order or bank transfer each month, and that these payments must be by the 25th.

That 25th qualification is just guidance to avoid SO problems with holidays and weekends. I often start RS initial payments to all LBG accounts after the 25th

So if your account matured 26th with interest, funds transferred automatically into their everyday saver (resetting your existing RS back to zero), are you able to pay into the account on 27th / 28th and continue with your standing order payments on 1st of each month?

Yes

For the above, the last payment would have been October 1st.  If a payment was made on 27th October, would it be deemed as 2 payments for October?

It would be 2 payments in October but as they are payments into two separate accounts it's irrelevant

howryoo

Thanks ColdIron.

Sorry, but I'm confused with 'two separate accounts'.

Unlike Lloyds' RS accounts, where they convert to an instant saver, then you apply for a new RS account with new account details; with Halifax, matured funds with interest is paid out of the RS and into an instant saver account which was setup when you applied for their RS.

The RS retains the same account details as it's the same account but just with a nil balance.

I suppose it doesn't make much difference anyway whether a 13th payment is made or not?

refluxer

If the account number of the renewed Regular Saver is the same as the old one, then there's a chance it might not like the second payment at the end of October. It all depends on whether they reset the deposit clock on the anniversary/maturity of the old account, I guess. If they do, they it should be possible to pay in as you suggest. 

I doubt you've got anything to lose by trying - they'll presumably just return the payment if it's not allowed.

Technically, it won't be a 13th payment into the old regular saver - it'll be a quick end-of-the-month 1st payment into the new one which effectively allows you to get (almost) the full 12 months-worth of interest on two payments of £500, rather than one payment of £250.

It'll be interesting to see if they change the rate from the current 5.50% in the near future. If the BoE doesn't increase the base rate next month then they might not, I guess. If the base rate does go up another 0.25% though, then it's likely the best easy access accounts will reach 5.50% soon afterwards, although the Halifax RS is fixed so could come in handy if rates go down next year.

ToastLady

Funnily enough, I was wondering exactly the same thing yesterday, although mine has a few months to go yet. Please let us know how it goes when the time comes.

Bridlington1

A few years ago I had a Halifax RS auto-renew around the middle of the month and I seem to recall it wouldn't let me make a deposit by SO or bank transfer from a Halifax current account until 1st of the following month since I'd already paid the maximum in before it matured.

A way round it would be to renew and close the RS now and then open a new one before making your initial deposit as this would be a separate account and would allow you to get a 13th payment in.

Descrabled

If the accompanying Everyday Saver is closed before the Regular Saver matures then the Regular Saver converts to an Everyday Saver. A new Regular Saver can then be opened and a payment can then be added.

I have always deleted the Everyday Saver so that all my options remain open, including, a savings holiday, not having a Regular Saver, making 13 payments, etc, etc

howryoo

Thanks for all the replies.

I guess two options are available; renew and close RS then open new one, or close the everyday saver when the original RS was setup.

What am I losing out on?  £13 ish?  Or, probably more precisely, around £2.50 assuming I have the same £250 in an easy access account now paying ~4.50% (assuming not going to change in next 12 months)?