Halifax to relaunch regular saver @10%+

Milarky

nicko33 wrote: »

or about £45 for those of us using new money rather than a feeder account. (before tax)

Sorry I disagree.

Assume you earn £500++ on 1st of each months and can put £500 of this towards this account

Now, in the first month, you have to hold back investing for c.30days - so as to bring the second due amount (1st of the next month) into proximity. Thereafter, all your money is paid in the same day as you earn it - so no delays there.

But! At '11 months' into the account you would be '12 months' into it if you have started immediately - so by waiting at the start you incur a further delay of c.30 days when you are waiting for the account to come out

So here's the picture

Month 1: £500 to invest (can't be @10% so has to been at best feeder rate - say @6.5%) minus 3.5%
Month 12: £6000 invested (stays @10% when it would have been paid out and sitting in the equivalent of a feeder account @6.5%) plus 3.5%

Now add up:

-£500 x 3.5% x 1/12th (of a year)
+£6000 x 3.5% x 1/12th

£5500 x + 3.5% x 1/12th = £16

david69_2

KAB wrote: »

more details ...

- offer period is June 9th to July 20th (must roll over an existing account or open new account and make initial deposit by July 20th).
- £500 pcm max confirmed
- 10% confirmed
- extra 2% if you also keep at least £5k in your nominated account (this can be a Guaranteed Saver Reward that will offer 6.25% fixed for 1yr, and you have a further 14 days to fund it)
- no other catches that I can see

can this 10% savings account be set up on line or will i have to visit a branch

Mikeyorks

6th bullet of Key Features (link in post 11 above yours) suggests Branch or online? It's likely to mimic the existing RS in that you can open it from an existing Portfolio.

mary

If you keep 5K @ 5.5% (in the highest paying account listed) you get £220 net interest and that will give you an additional £52 interest on the Regular Saver (difference between 12% and 10% )

In order not to tie up your £5K in the Halifax 5.5%, you need to have it in an
account (elsewhere) paying a min of 6.8% (£272 interest net) in order to break even, so to speak.

nicko33

Milarky wrote: »

Sorry I disagree.

I'm coming round to your way of thinking, looks like I hadn't fully accounted for month 13.
I make it £18+ though, looking at each month individually

Dagobert

mary wrote:

In order not to tie up your £5K in the Halifax 5.5% ...

I think you are getting the 5.5% nomninated account from the Halifax press release.

However, when you look at the Variable Rate Websaver spec, you will find that the 5.5% gross rate includes a 1.25% bonus which expires on 18th July 2008.

It's obviously total bogus to list 5.5% as the top nominated account as one will only benefit from this bonus for 5 weeks of the 1-year investment period.

The list of HBOS savings accounts shows a 6.3% Bank of Scotland Instant Access Savings Account Reward. But possibly this is not one of the eligible accounts.



An extra 2% on the regular saver gives you £68-£71 gross depending on what date the account is opened assuming payments 2-12 go in on the 1st of the month.

£5000 could be invested in a 7% 1-year bond. Tying up £5000 at HBOS requires a gross rate greater 5.6% to be worth the 2% gain on the regular saver.



In other words, only the Bank of Scotland Instant Access Savings Account Reward would be worth it.

Mikeyorks

Dagobert wrote: »

Tying up £5000 at HBOS requires a gross rate greater 5.6% to be worth the 2% gain on the regular saver.

Which you're not going to get. As the best viable (because, as you infer, the 5.5% they quote reduces to 4.25% next month!) interest rate in their list of nominated accounts is 5.25% (Guaranteed Saver).

Unless it's new money .... the only way you win on this is teaming the 10% with at least a 6% feeder account outside Halifax. That way you average circa 8% on the entity.

If you strive for the 12% .... by tying up £5k at 5.25% .... then the net effect reduces to around 7.3% gross. That involves potentially 3 new accounts, for most people. And one of them (the feeder) outside Halifax. If you keep the feeder account inside Halifax then that reduces the overall effect to circa 6.85% if you use the 4.4% Web or close to 7% if you use the 5.12% current account.

For the tying up of £11k ..... I've decided that a fixed rate product around 7% is a far less onerous way of Saving.

Dagobert

Mikeyorks wrote:

the only way you win on this is teaming the 10% with at least a 6% feeder account outside Halifax. That way you average circa 8% on the entity.

In conjunction with Tesco's 6.25 Internet Account, which can send Faster Payments to HBOS, it's an average of 8.48% if started on 20th June and fed on the 1st of the month.

That's a £89 gain over a 7% investment. If it's worth the extra time spent is another matter.

cundall

matttttttttt wrote: »

I am glad that the advice from the Halifax financial advisor that met with me was wrong.I will gladly invest £500 a month not the £250 that I was led to believe was the maximum.
Next time I am in that branch I will complain about incorect financial advice.

next time true the forums a bit more Plus never get advice from you bank, if you have lots of money go to an IFA

mary

Had a query on my current account with Halifax today, rang to sort it out. Whilst on the phone, asked the girl to check whether you could have both, verified with Savings Dept, yes, you can have both.

Then to double check, contacted the name on the bottom of the Press Release Paul Fincham 01422 391249 and spoke with a Clare Miller (in the Press Office), who told me the opposite that you cannot have both, either 7% or 10%.

Another case of right hand/left hand situation.