Halifax Regular Saver Question

Parisian

I recent opened the Halifax Regular Saver online.
It automaticall opens a Halifax Web Saver at the same time (at the end of the year, all funds will be transferred to this account).

Just a few questions:

1. The terms say "Minimum opening balance £1" for the Web Saver account.
Do I have to fund it now? I don't particularly want it, so just wanted to leave it untouched. I am just going to transfer my money straight out of it!

2. The terms say
"Make one withdrawal a year without loss of interest. If you need to make further withdrawals (including account closure), you will lose an amount equal to 30 days interest on the amount withdrawn (or the closing balance)".

I only intend to withdraw the whole amount right at the end of the year, when the amount from my Regular Saver is transferred to this account. However, the wording above slightly worries me, becase of this 30 days interest/ closing balance malarky.... after all things might not run as smoothly as I planned...

Does anyone else have this Regular Saver? What is your position on this? Did you fund it with £1 early on? Did you transfer it/intend to transfer it all out in one go at the end?

As I write this I realise it is a bit silly, but just wondering!!

Milarky

I think you need to opt for the variable rate websaver account instead the one you ar e talking about. Although the rate is naff you can make unlimited withdrawal without penalty. Whatever it says the opening balance should be, you can reduce the account balance to £0.01 (for some reason not 0.00) and just wait for the transfer from the Regular Saver.

Parisian

Thanks Milarky...

Yes, it's the Variable Rate Websaver account I have. Thanks for clearing that up (got those terms from the leaflet they sent me).

So...do I need to make a deposit in this account? It currently has a 0 balance in it. Am slightly confused!

Dan29

I funded mine with £1 early on, which I'll withdraw with the rest of the Regular Saver funds once they're in there.

It's the Web Saver Extra that only allows one withdrawal per year.

Parisian

Thanks Dan.... just transferred £1 over....

Mikeyorks

That's sorted out your misunderstanding on the Websaver then!;) It's really not a good 'feeder' account for the Reg Saver at the moment, as the interest rate is down to 4.61%.

The Regular Saver ..... watch you fund it every calendar month (prior to the 28th). And be cautious - year 1 only - that you may (depending on anniversary date) have to fund it with 13 payments. Or juggle the SO (from wherever you fund it) dates towards the end of the first year in order to meet the funding per calendar month requirement.

There's no problem with 13 payments .. it's just that they will repay all 13 + interest at the anniversary date. Then it's usually beneficial to move your SO date again (and then leave it there) to put Month 1 of the new year (if you leave it to run a 2nd year) in place as soon after the anniversary as possible. But again - watch that you can't put Month 1 (of the new year) in during the same calendar month as Month 13 of the closing year!

Fortunately it's only an issue during year 1 ..... provided you adjust the SO, as above, just after the 1st anniversary date.

Parisian

Hi Mikey...:D

Yeah, am definitely not using the Web Saver account as a feeder account (only opened it because they required it)! It comes out of my student current account with them...
It's so silly... why don't they just pay it all into my current account on the anniversary... they are so long winded about these things!!

Regarding what else you wrote in your post...
I opened the account about 10 days ago. I arranged for the first date of payment to be the 14th of this month.
In the online banking area, it says the anniversary of the account will be 14th April 2009 (as expected).

So on the 14th April 2009 the 13th payment will go in, and it will be closed and all 13 payments + interest will be paid to me? I am with you until there.... but then I am lost...

I saw in the Regular Saver thread something about the best dates to open the account but I didn't understand it. Why does it matter what date...since they take the first day you put in money to be the first day you start earning interest? What are the implications of having to pay in an amount before the 28th?

Thankkksss!

Mikeyorks

Parisian wrote: »

So on the 14th April 2009 the 13th payment will go in, and it will be closed and all 13 payments + interest will be paid to me? I am with you until there.... but then I am lost...

Hi there.

I think they've changed things. When I first opened Reg Savers for self + OH .... the anniversary date was in the following month. So 13 payments in the 1st year became virtually mandatory. In your case ... not a problem.

Continue with payments on the 14th ..... up until (and including) your 12th payment on 14th March 09? Then ... if (they don't 'close' the account .. it continues into the next year) you're keeping the account going ..... move your SO (after 15th March ... for safety) to the 15th of the month. In order the next payment is 15th April .... and becomes payment 1 of the new year. Thereafter leave it at the 15th ..... and it all fits for subsequent years ..... and your 1st payment is arriving on Day 1 of the new year and therefore maximising the interest?

What are the implications of having to pay in an amount before the 28th?

It's the cut-off they set as to whether you've met the criteria for 'a payment in a calendar month'

Parisian

Ahhhh i see.... yes I think they must have changed things.

However, on April 14th 2009... that will be the 13th payment and not the 12th.
Perhaps I need to enquire whether making 12 payments (the last being March 14th 2008) is sufficient... or if they really do require a 13th payment (so that an amount is debited that month before the 28th, as required in their terms). Since if this payment is made, it is closed on the same day and it's all rather pointless!
Honestly, who thinks of these weird terms?!

There doesn't seem to be an option of keeping the account going. On the anniversary it all transfers to the Web Saver account... and I assume that if I want another Regular Saver, I will have to apply again....

Mikeyorks

Parisian wrote: »

However, on April 14th 2009... that will be the 13th payment and not the 12th.

No - you haven't read my previous properly?;)

Don't make the (13th) payment April 14th 2009. On the 15th March 2009 (after the 12th payment 14.3.09) ..... move your SO date to the 15th (April). That way you will make only 12 payments in Year 1 .... but your first payment for Year 2 ..... will be the 1st day of the new account.

Parisian wrote:

There doesn't seem to be an option of keeping the account going. On the anniversary it all transfers to the Web Saver account... and I assume that if I want another Regular Saver, I will have to apply again....

No ..... it stays open automatically. They sweep the funds from the closing year into your nominated account 14th April. Then the account simply stays open to start afresh for another year. So ..... if you do as the previous para .... your first payment of the new year will be in there the following day. That maximises the interest.

Finally. As you're a Student? If you're not liable for tax (?) ... don't forget to file an R85 to get gross interest. Halifax don't accept paper R85s. You just ring them up - they record it - and write to you confirming. But don't then forget to rescind it once you join the rest of us contributors?

Parisian

Ahhhhh I seeeeeeee, it all makes sense now!! Thank you v. much for explaining it all & for the tips.....
Let's hope the interest rate stays competitive when next year rolls around hey!


p.s. Yes, have sorted out the R85 form for it.... I filled in a form in the branch, and a few days later in the online banking area it says it is registered for gross interest.
A question about this... I am due to start working August 2009.... if I write to all accounts in advance of this (say in July)... will they calculate gross up until I write to them and apply the new rate after this date? Or should I specify the day I start working...or indeed the day I get my first pay check? So much speculation!!!