Halifax to relaunch regular saver @10%+

uk1

Frugality wrote: »

MSE says that if there is a savings account with such a high rate as 10% (i.e way above my Lloyds ISA rate of a lousy 4%) then it is probably better to fill up this savings account.

Surely not? Because if i use my ISA allowance, in the long run it should be the aim to max out your ISA first so monies are accumulated every year??

Maybe not so clear: what im saying is, I dont know whether to fill up my 3.6k in my ISA or fill up this Halifax 10%.

If you see your ISA as a long-term'ish account ie you plan to leave the cash in a cash ISA for a number of years AND you believe that you will be a tax payer during that time then in simplistic terms it MIGHT make sense to take your cash isa allowance first and then use the RS account with any regular payment you can afford that's left over after you've maxed the cash ISA. If you plan to cash in you ISA in say a years time then the calculation is more simple. You compare the net return of your cash ISA with the regular saver return after tax and choose the best.

The main reason to prefer to max the isa in preference if you see the isa as a medium to long term saving is that once you've lost this years cash isa allowance you cannot go back and use it in subsequent years and the RS account rates might not be available in future years - so what you've saved in it this year might not find such an attractive home when it finsihes in a years time.

I have just transferred all of my cash ISAs and my wife's cash ISAs into a 4 year rate fixed at 6.2%. That's a gamble or as I prefer to call it a "calculated risk" but I prefer to leave it locked and forget it at what is not a bad rate particularly if you think that the current level of high savings rates compared to the income the banks have from the often lower loan interests rates is unsustainable over the longer term.

No one can actually tell you pedantically what's best for you but the above is perhaps the major set of considerations.

thumshie

oldfella wrote: »

The 2% bonus is paid if you have £5000 in any account with HBOS if not you get 10%

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does this include web saver fixed interest ?

No.
gzed-Nor ISA's.

It has to be in the nominated account, not any account. And to quote their web site:
http://www.halifax.co.uk/savings/regularsaver.asp

The ‘nominated account’ can be:

• Halifax Guaranteed Saver
• Variable rate Halifax Web Saver
• Halifax Premium Savings Direct
• Halifax Saver Reward
• Halifax Instant Saver

tiptoe_mouse

gzed wrote: »

My lloyds TSB regular saver ends in september. I probably will open this 10% (possibly 12%?) account now using money from my ISA for the 1st couple of month and the initial deposit from an online saver (I don't have enough on the online saver to feed in for this period, especially since I have to pay car tax and insurance next month) and then use the money from the LLoyds Saver. I don't really want to take money out of my ISA but it will only be 2x £500 for July/August.

Or i could take some out of my ISA investor (or can't I). The investor is probably the worse thing I have ever opened...

Alternatively you could make the minimum payment of £25 into the regular saver for July and August, and then, in September, change your standing order to £500.

HTH
tiptoe

Paul_Herring

mikael wrote: »

I specifically confirmed I could have both with the staff in the branch.

You have it in writing then? In that case you have them bang to rights.

Paul_Herring

FairyElephant wrote: »

I posted this yesterday, but people seem to still be asking the same question today, so in the interest (no pun intended!) of clarity:

"The helpful chappie who opened the new acct explained re the £5k to get the extra 2% (which sadly I don't have so couldn't do even if I wanted to!) - To answer some previous posters' questions - he said that you need to keep at least £5k in the nominated acct FOR THE WHOLE YEAR - if the balance drops below £5k you don't get any of the extra 2%. Hope that helps some people."

So you aren't quoting from T&C's or a leaflet - just a conversation with some branch staff, who (as has been pointed out) can be wrong.

As it turns out, this particular member of staff appears to have been correct, however...

TomJ

gzed wrote: »

My lloyds TSB regular saver ends in september. I probably will open this 10% (possibly 12%?) account now using money from my ISA for the 1st couple of month and the initial deposit from an online saver (I don't have enough on the online saver to feed in for this period, especially since I have to pay car tax and insurance next month) and then use the money from the LLoyds Saver. I don't really want to take money out of my ISA but it will only be 2x £500 for July/August.

Given that you can withdraw cash from the Lloyds Monthly Saver without penalty, you might want to consider taking the cash from that rather than the ISA. Take into account the amount of tax you pay on your interest (8% less basic rate = 6.4%, less top rate = 4.8%) and compare that with the tax free ISA rate,as well as the fact the ISA will continue to earn the tax free interest for years if it's left there, whereads the Monthly Saver's competitive rate runs out in a few months.

obsessed_saver

gzed wrote: »

I don't really want to take money out of my ISA but it will only be 2x £500 for July/August.

Or i could take some out of my ISA investor (or can't I). The investor is probably the worse thing I have ever opened...

Hi gzed, I would advise you not to withdraw your money from your cash ISA to fund this regular saver. You have the option of funding this new Halifax RS with £25 (or whatever amount you can spare as long as it's more than £25) for two months. You have to remember that once you withdraw from and ISA, you can't top it back up without having an impact on your current tax year ISA allowance.

As for your ISA investor...... can't really comment as there's never a right or wrong thing for sure in investment choices.

borntobefree

Hi

I've just set up a regular saver on line. So now I have a regular saver account and a nominated account. Do I just need to set up a SO? Is that it? Is noone going to check my identity? Do I not have to go into a branch? What if I want my interest paid gross? Confused it can't be that easy?

debbie42

borntobefree wrote: »

What if I want my interest paid gross? Confused it can't be that easy?

You will need to fill out an R85 form if you want your interest paid gross (for both RS and niminated account). I have several Halifax accounts, yet still have to go to a branch to have my id validated .

darksider

Hi everyone. long time lurker but this is my first post.
Ive just been reading this article about regular savings accounts and the "Drip Feed" method. http://www.moneysavingexpert.com/savings/best-regular-savings-accounts

I hope Im posting in the right place and that my questions haven't already been answered elsewhere

I've got quite a large sum sat doing nothing in my current account. I had abit of inheritance recently (not the nicest way of gaining money though) and had no other account to have it deposited into.

Ive done alot of research into how i can make this money work for me, im sure if i get it right, the interest could pay my mortgage each month (retrospectively of course, Id still have to work)

Anyway, my questions are these:

What is the maximum I could 'dripfeed' into a regular savings per month?
What would be the best savings account to 'dripfeed' from (opinions please)?
could i do this dripfeeding more than once, (ie, could I have 2 savings and 2 regular savings accounts) if so, would I get hammered with tax?
Could i use this method and spread it about using my kids and avoid the big tax bills?

the person who left me the money was an accountant, so i feel it's only right i try and squeeze as much out of his gift as possible. it's what he would have wanted!