Halifax to relaunch regular saver @10%+

grebbo

I haven't had a regular savings account for a while; I've just stuck with ISA's.

I'm wondering what the tax implications are for this type of savings account? For both basic and higher rate tax payers.

i.e. 10% is headline rate but what is it after tax?

Many thanks

Former_MSE_Dan

Hi folks,

Sorry I havent had time to read the whole thread - am currently working on updating our article to include this account. First signals are it looks good though, yet to find a big catch (but won't stop us looking!)

In case they havent already appeared, here are the details, from the Halifax press release

Halifax Launches 10% Regular Saver

Halifax today announces the launch of a new 10 per cent Regular Saver account, unlike other accounts available in the marketthis is not linked to a current account. Savers will benefit from a best buy rate and a leading maximum monthly deposit limit of £500. An additional 2 per cent interest rate is available to savers who deposit and maintain a further £5000 in a nominated Halifax savings account.

The new account is available for a limited six week period, from Monday 9th June until Sunday 20th July.

Key features:

• 10% gross interest, fixed for a year
• Open to new and existing customers, one account per adult. Account available for a limited period ending 20th July 2008. One regular saver account per customer, per year.
• Deposit between £25 and £500 each month by standing order
• If the account is closed early or a withdrawal is made, the rate of interest will revert to the Halifax Web Saver without card rate for the period of investment.
• Each year the capital and interest are swept into one of six nominated accounts. The regular saver account remains open and deposits can continue to be made
• Operated via branch or online
• Unlike some other banks, customers are not obliged to take a low interest current account in order to open the regular saver account.

Hope this helps

Dan

Paul_Herring

Dan wrote:

# Open to new and existing customers, one account per adult. Account available for a limited period ending 20th July 2008. One regular saver account per customer, per year.
[...]
# If the account is closed early or a withdrawal is made, the rate of interest will revert to the Halifax Web Saver without card rate for the period of investment.

What exactly does this mean to holders of 7% regular savers that don't expire in the six week period?

Does switching mean an effective early closure of the 7% resulting in a loss of interest?

Can a 10% RS be run alongside a 7%?

What happens to the 10% account after 12 months? Does it continue like the current 7% account does? (I'm assuming any money gets transferred as it does with the 7%)

Mikeyorks

grebbo wrote: »

i.e. 10% is headline rate but what is it after tax?

Many thanks

Exactly 8%, after 20% deducted at source.

Mikeyorks

Paul_Herring wrote: »

1) Does switching mean an effective early closure of the 7% resulting in a loss of interest?

2) Can a 10% RS be run alongside a 7%?

3) What happens to the 10% account after 12 months? Does it continue like the current 7% account does? (I'm assuming any money gets transferred as it does with the 7%)

1) Yes .. except you can't switch ... you have to abort the 7% (which will reduce the interest paid to 4.36 / 4.40% (depending on the value when you abort) .. in order to operate the 10%.

2) No.

3) Continues as the 7%. Money swept out to your nominated account (as the 7%).

johnmoney05

Paul_Herring wrote: »

What exactly does this mean to holders of 7% regular savers that don't expire in the six week period?

Does switching mean an effective early closure of the 7% resulting in a loss of interest?

Can a 10% RS be run alongside a 7%?

What happens to the 10% account after 12 months? Does it continue like the current 7% account does? (I'm assuming any money gets transferred as it does with the 7%)

I think I will wait untill Monday to get the information from Halifax rather than the "guess" from some "experts" here.

Mikeyorks

johnmoney05 wrote: »

I think I will wait untill Monday to get the information from Halifax rather than the "guess" from some "experts" here.

Try actually reading the existing Halifax Regular Saver T&Cs allied to the Key Facts in the Press Release from yesterday (posted above if you trouble to find it) ..... and you will find there is no guesswork.

quinlanmd

Mikeyorks wrote: »

Try actually reading the existing Halifax Regular Saver T&Cs allied to the Key Facts in the Press Release from yesterday (posted above if you trouble to find it) ..... and you will find there is no guesswork.

I understand your attitude towards the previous post, but to be fair the "press release" Key Facts may be introducing a new condition (one per year) which may mean that customers who have closed a 7% Regular Saver this year are excluded, so for that at least, we (i.e. customers such as myself) are waiting to see whether we will be prevented from opening the new 10% Regular Saver or whether that Key Facts are just poorly worded.

amiehall

can anyone see any conditions relating to the consistancy of funding. for example as long as i fund by standing order, can i vary the amount paid or do i need to commit to a set amount for the whole term? i love my barclays one, the way i can reduce the payment to £20 for the month if i'm having a tight month. if this would be possible with the halifax account, i might well open one and just minimise my barclays payments for the rest of the term as saving £750 a month is maybe a bit much for me

LongTermLurker

quinlanmd wrote: »

I understand your attitude towards the previous post, but to be fair the "press release" Key Facts may be introducing a new condition (one per year) which may mean that customers who have closed a 7% Regular Saver this year are excluded, so for that at least, we (i.e. customers such as myself) are waiting to see whether we will be prevented from opening the new 10% Regular Saver or whether that Key Facts are just poorly worded.

Yeah, rather than closing mine online I'm going to phone them on Monday, ask if there's anything stopping me closing one and opening the other and if they say "no" I'll ask if they can do that for me