HALIFAX launches hottest savings product

skoolmaster

HALIFAX launches hottest savings product :j

LONDON (Reuters) - An interest rate war in the savings market heated up on Thursday as Halifax unveiled a no-strings savings account paying 10 percent.

Its new "regular saver" account will pay a fixed 10 percent for one year, and -- unlike other high-interest savings accounts -- people need not open a current account with the bank to qualify.

However, those who keep at least 5,000 pounds in a nominated Halifax savings account will earn an extra 2 percent interest.

It is the latest in a string of high-yielding savings accounts launched in recent months as banks and building societies try to shore up their balance sheets in the wake of the credit crunch.

The offering comfortably beats existing best-buy fixed-rate deals: FirstSave is paying 7.10 percent, Icesave 7.01 percent and the Bank of Cyprus 6.85 percent respectively on their one-year fixed-rate bonds, data from Moneyfacts.co.uk shows.

Regular monthly deposits of 25 to 500 pounds must be made by standing order into the Halifax account, and no withdrawals are allowed during the year to achieve the 10 percent rate.

Open to new and existing customers, it is available for six weeks from Monday to July 20.

nicko33

see also
http://forums.moneysavingexpert.com/showthread.html?t=942779

edit:
is the "no withdrawals" condition new information?

YorkshireBoy

As I've just posted on the other Halifax 10% thread, from the horse's mouth...

http://www.hbosplc.com/media/pressreleases/articles/halifax/2008-06-05-HalifaxLau.asp?section=halifax

Frugality_2

What will the rate go down to after the 12 months?

LongTermLurker

Frugality wrote: »

What will the rate go down to after the 12 months?

At the end of the term your money will be transferred into the linked account and will get whatever that's offering at the time - there's a choice of linked accounts but YBs post above shows what they all pay at the moment (at the bottom)

Milarky

Frugality wrote: »

What will the rate go down to after the 12 months?

You mean this:

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

Yes, I can't see the same fixed rate being available again - merely a lower (fixed) one. Halifax will have plenty of time to decide which as accounts will only be opened for a short period - not all the way through the year.

trashcan_2

So when you sign up you have to open an extra account that they put your money into at the end of the term. Isthat what they mean?

And you can use any current account?