Halifax to relaunch regular saver @10%+

uk1

amazamum wrote: »

I there a mimimum/maximum amount that you can set the account up with?.
Could I put in 10,000 pounds then fund 500 pounds from another bank account for the 12 months?.
What sort of tax do you pay anyone know how to work it out.
Thanks

As £10,500 is more than £500 then you can't do it.

TomJ

dkmax wrote: »

The point is that you are making additional money not by virtue of the timing alone but by getting an additional payment into the account in the permitted interest paying period. The asymptotic limit to this method is trivial to calculate as it is simply the interest earned on the additional payment for a year - i.e. £50 in the case of 10% and £500, to be reduced commensurately for the 'phase' difference.

Absolutely, here we are in violent agreement; the beneficial effect of waiting is allowing you to get more cash in for a longer proportion of the acct's life. 8-)

However, the person that doesn't delay gets their entire fund earlier too so it strongly depends on some assumptions about what the interest paying environment is at the other end. Your £29 advantage will be reduced by anything that pays above zero.

You're right, may analysis was incomplete. If I assume a chap begins his regular saver on the 10th of the month can instantly move all the money in it, complete with untaxed interest and a further £500 added to ensure the same capital input as in the waiting til the end of the month case, to an account paying 6.5% when the RS matures and further assuming the worst case that he would get no interest at all on his £500 if he waited until the end of the month putting it in, he would still be £12.81 up (£21.65 for 12% RS) by over the whole period by waiting till the end of the month. I of course I am assuming that 6.5% will still be a competitive interest rate in a year's time, but it you'd need to get 9.1% (10.75% for 12% example) for your entire matured RS to entriely counteract the benefit of wating till the end of the month. I am going to assume that such interest rates won't be widely available by then.

There are other potential pit-falls, e.g the Halifax regular savers that didn't open their existing accounts until end of July 2007 or beyond will probably miss out on the 10% rate.

Quite so.

Lavendyr

pfpf wrote: »

anyone else got an Anniversary date even though the account isnt funded?

Yes, me - I opened the account on 9th June and the anniversary date is showing as 09/06/09. I sent £500 by S/O on 10th June so I should only lose a couple of days though.

cundall

pfpf wrote: »

Halifax Regular Saver ENQUIRY ONLY SERVICE

I have the same issue - cannot transfer into my account

Anyone know a way around this??

pfpf

ok,

just incase anyone else saw the post where it was suggested the Anniversary date was 1 year after the 1st deposit, i think its now clear its actually 1 year from opening date.

Cundall.

not sure, but are you trying to fund from another Halifax account? i think there has been chat on the last couple of pages about it.

aslong as you have your sort code and account number for the new RS you can just send a payment from another bank.



i think my original assumption about:

Halifax Regular Saver ENQUIRY ONLY SERVICE

is correct in that its just the technical name in that you cant dep/with from it online in a normal way, you can only look at the account.

a&akay

Even though the sort no for the new Reg Saver account is shown on the APACS site as being elligible for faster transfers, I have been unsuccessful. It did appear 2 day's later from a Barclays' current account transfer into their Regular Saver. Transfers from a Halifax current account to their Regualr Saver also appears to be blocked, I have tried it twice. I can transfer Barclays' current to Halifax current in minutes under the new system but not from Halifax current to the Regular Saver. We therefore seem to have to accept a BACS delay. So much for the faster payments system.

trashcan_2

As i opened mine today, Does that mean i have got to the 23rd of this month for the first standing order to reach them. I was hoping to make payments at the 1st of the month, but from what I have read that does not seem possible.

cundall

pfpf wrote: »

ok,

Cundall.

not sure, but are you trying to fund from another Halifax account? i think there has been chat on the last couple of pages about it.

.

Thanks, i wanted to just do an online transfer like i do between my normal websaver account and my current account (a few seconds). I think i will have to create a payment which will take 3 days

gelato_cat

Thanks. Looks like I was wrong about losing out then - although I am somewhat confused by later posts saying I'd get a better return by fixing £5k in the 6.25% Guaranteed Saver and pairing it with the 12% Regular Saver.

WRT laddering - thanks for the tip. One of the reasons I haven't fixed for a whole year is that I'll need access to the funds in spring next year, ie sometime between March and June (so fixing again when my current ones mature is probably not going to be an option, but I wanted to keep my options open). Bit risky as who knows what savings rates will be available in a few months' time - I could have fixed it all high now, only for rates to plummet in six months' time! It's all a bit of a gamble I spose.

Suze

Paul_Herring wrote: »

Between
a) what you're getting currently with your fixed rate accounts (and in the future) and
b) the (below par) rate you'd be getting on the £5000 in one of the nominated accounts + 2% on (roughly on average) £3000 (1/2 the end total)

I think you'd be better off rotating the 6 monthly fixed rates. Indeed if I had £5000 free to stick in Halifax to get the '2%' I wouldn't bother and stick it in a 1 year fix elsewhere instead

FWIW, I think having it tied up has actually worked in your favour since you ended up posting about it instead of just sticking it in the Halifax.

==========================

Going off topic - when you get your fixed rates maturing you may want to structure the reinvestments a bit more 'conveniently' - look into 'laddering' them - http://www.bargaineering.com/articles/laddering-your-emergency-fund.html - that URL is aimed at US investors and 'CDs' (certificate of deposit) which are much like our fixed rate savings bonds. Basically you split your capital into (say) £1000 lumps and stagger the starting dates of your lumps such that they mature regularly.

In your case, in October (if you want to stick with £5000 and you want to have them mature (almost) every month) reinvest £1000 in October, Nov, Dec, Jan, Feb (skip Mar) October matures Apr - reinvest (with or without interest) if you don't need it, ; Nov matures May - reinvest, etc...

The longest you'd wait for the return of some capital (unless you can find another £1000 to put into the ladder) is 2 months but it would normally be one month.

Lavendyr

trashcan wrote: »

As i opened mine today, Does that mean i have got to the 23rd of this month for the first standing order to reach them. I was hoping to make payments at the 1st of the month, but from what I have read that does not seem possible.

Yes, it's perfectly possible. Just set your first standing order payment to go out before the 23rd of this month, and then change the date on it so it goes out on the 1st of the month thereafter. You can change the date and amount of the standing order as often as you like as long as it stays between £25-500 and arrives before the end of the month.
Regards