Halifax Childrens Regular Saver Account

kategorgeous

I've just had my first statement for my son's Halifax Childrens Regular Saver Account which is supposed to get interest of 10%. It has a balance of £120 and the interest was £6.46. When I complained to Halifax they gave me a long winded explanation about the interest being charged on a daily basis on the amount that is in the account at that particular moment. I didn't really understand his reply but the upshot of it is I feel totally swindled as the interest is less than if I had just put it in an ordinary high interest account. Am I being dumb or can someone explain why I don't get interest of 10% at the end of the year? :mad:

Maisie

I opened these accounts and Halifax made a big mess up. Firstly by paying the money into the passbook account and not the 10% account. I closed the accounts after 2 years as 2 grandchildren have different amounts to the others and they were all opened same day with same amount.
How they worked that out I don't know and after complaints to their Head office(which were ignored) and going to see managers in two different branches and now after 3 amended passbooks each it's still wrong!

The interest of £6.46 is correct. You get interest on a daily basis so if you have only paid £20 in you only get 10% interest on £20.
It works out to the £6.46 over the year for the £10 monthly payment.


HTH Maisie

money_maker_3

It does say on the form that it is not cumulative interest. You get 10% on your first deposit for 12 months, 10% on the 2nd deposit for 11 months and so on, so the interest you received is correct. If you are only going to do £10 or £20 a month, then you would probably be better with the save4it

Twopints

With all regular saving accounts, children's or otherwise, you only get interest on the money for the time it has been in the account. For a rough estimate of the interest you can expect to be paid, you need to take the average balance (£65) and apply the percentage, 10% = £6.50.

You get:
12/12 (twelve months' worth) x 10% of £10 (1st payment) = £1.00
11/12 (eleven months' worth) x 10% of £10 (2nd payment) = £0.92

(then £0.83, 0.75, 0.67, 0.58, 0.50, 0.42, 0.33, 0.25, 0.17, 0.08)

Which comes to £6.50 - the small difference from what you got could be due to rounding or using actual days in each month rather than a straight twelfth.

If you have the full £120 and are "drip-feeding" it into the regular saver, you can increase your interest by keeping the £120 in the highest interest paying account you can find. If you made the same monthly payments into a standard account e.g. Halifax's Save4it at 5.55% you would have got approx £3.61 (£65 x 5.55%)

baby_boomer

kategorgeous wrote: »

I've just had my first statement for my son's Halifax Childrens Regular Saver Account which is supposed to get interest of 10%. It has a balance of £120 and the interest was £6.46.

That sounds about right. The average in your account over the year would have been about £65 so Halifax has paid you 10%.

can someone explain why I don't get interest of 10% at the end of the year? :mad:

If you put £1 into a 10% account at the start of the year and £1,000,000 on the last day of the year, would you expect to get paid £100,000 interest for that year?

Leighthal

baby_boomer wrote: »

That sounds about right. The average in your account over the year would have been about £65 so Halifax has paid you 10%.

If you put £1 into a 10% account at the start of the year and £1,000,000 on the last day of the year, would you expect to get paid £100,000 interest for that year?[/quote]

Best explanation of 'regular savers' ever!:cool: