Halifax 10% Saver - Best Opening Date

ChloeRadshaw

I have read the previous thirty page(!) thread on Halifax and I am just wondering if anyone knows when the best date to open the account is to maximize interest paid?

I have heard the beginning of the month but I did not understand the motivation

Also is there any restrictions on money coming in from a Halifax current account and is this transfer done immediately or would it be subject to three days like all other transfers are?

Thanks

LucyTheDwarf

If you open it a few days before the deadline for payment (28th, I think), then you can have one payment going into the account at the end of the month (opening date, give or take a few), and have the next payment going in on the 1st of the next month - hence your first two payments will be in the account earning interest for the longest possible time. They'll both get nearly 12 months, as opposed to first payment earning interest for 12 months, second payment earning interest for 11 months etc...

If you want to get the payment in at the end of the month, I suggest you apply now!

Mikeyorks

However many people respond to this ....will tend to be the number of different answers you get!

But I tend to go with the fact the best achievable date is after the mid-point of the month (with a lot it's the date you fund it that sets the 'anniversary - not the opening date). Get your first payment in then ... and your 2nd as close to the 1st of the following month as is possible, but without being too precipitate - as just one day early (and therefore 2 payments in the same month) can be an expensive breach of the T&Cs.

And, if you're only keeping it a year - ensure you get a 13th payment in on the 1st of the month a year hence - and in which the anniversary falls. EG 1st payment to initiate the account 24th June 08 (anniversary therefore 24th June 09) ..... 2nd payment 1st July 08 ... 13th payment 1st June 09.

LucyTheDwarf

But do they allow 13th payments? I haven't been able to get an answer out of Halifax..

Mikeyorks

The accurate answer is ..... that they can't disallow it. As it's endemic to the 1st year of a Regular Saver if you do as you say ... open the account after the mid-point of the month and then change payments to the 1st.

You're actually more at risk of falling foul of failing to fund it in the final month! Than you are of being disallowed for 13 payments in the 1st year.

If you want precedents ... there are historic threads of this happening in the first year of the Halifax 7%'ers .... and no one did anything but earn extra interest. I've funded mine / OH and Mum's .... with 13 payments in the first year (just killed all of the 7% RS's off after 3 years) .... with absolutely no problems. It's not an issue to Halifax.

Milarky

The optimum opening date is 30 June (i.e. the very last day of the month) You can open with a deposit. Only subsequent payments need to be by standing orders. If you have a current account with Halifax OR with another bank offering Faster Payments your second (month's) payment will be sent/arrive the next day. Going by a calendar the standing order payments will go out/in only on Mondays to Fridays and therefore will be held back by 2 days in November, 1 day in January (the bank holiday!), 1 day in February and 1 day in March. These small delays amount 5 days on a single payment - scarcely noticeable.

steviewander

I was told by Halifax (twice by two different advisors) that any payment contributing to a month's deposit must reach the account by 28th of any month. Does this not apply to the opening deposit then?

I have yet to make my first deposit and I've been told that the account officially commences on the day that they receive the opening credit.

My thinking is that if I can make my first deposit by 28th June over the counter with cash, I can then follow with standing orders on the 1st of each month.

I'll attempt this by going to my branch and see what they say.

exel1966

Milarky wrote: »

The optimum opening date is 30 June (i.e. the very last day of the month) You can open with a deposit. Only subsequent payments need to be by standing orders. If you have a current account with Halifax OR with another bank offering Faster Payments your second (month's) payment will be sent/arrive the next day. Going by a calendar the standing order payments will go out/in only on Mondays to Fridays and therefore will be held back by 2 days in November, 1 day in January (the bank holiday!), 1 day in February and 1 day in March. These small delays amount 5 days on a single payment - scarcely noticeable.

I can't find any info on the Halifax site which confirms you can open with a cash deposit. Mention is only made decreeing all payments into the account must be by S/O. Can you confirm where you got that info ?
The site again mentions that all payments must reach the account by the 28th, but does this apply to the opening cash deposit (if permitted) ?

EDIT : Reading Halifax T&C's a little further, the Monthly Saver says you can open with a cash deposit and doesn't have a cut off date. Are you referring to that account ?

Compound_2

I'm copying my post from the main Halifax RS thread, as it's on this very topic.

I was wondering what are people's views about making 30 June the anniversary of the account, to maximize the interest. I've spoken to Halifax staff who've told me that the clause in the T&C that accounts will be closed if no standing order is received by the 28th should be interpreted as 'by the end of the month'. The 28th is advertised as a precaution because of February.

For July onwards, I would make the payment on the 1st so it's just June that matters. It would be hard for anyone opening an account this week to get the standing order in by 28 June. Could Halifax 'close' the account and 'pay interest' at the Web saver rate when the account is still awaiting its 'opening' deposit? What about people who open their account in branch on 30 June with a manual deposit? The 10% offer was advertised for opening deposits between 9 June and 20 July with no exclusion of 29/30 June.

So, if you're planning to maximize your interest, would you make the opening deposit on 30 June, or play safe getting it in by the 28th? Staff seem to think the 30th is OK, but I'd welcome comments as staff do sometimes give incorrect info, and the T&Cs are being contradicted.

A word of advice: if doing the 30th, make a separate standing order for the 1st ASAP as there may not be time to amend a 30th standing order. If the money's coming from a Halifax current account delays are minimized and weekend dates can be used.

steviewander

exel1966 wrote: »

I can't find any info on the Halifax site which confirms you can open with a cash deposit. Mention is only made decreeing all payments into the account must be by S/O. Can you confirm where you got that info ?
The site again mentions that all payments must reach the account by the 28th, but does this apply to the opening cash deposit (if permitted) ?

EDIT : Reading Halifax T&C's a little further, the Monthly Saver says you can open with a cash deposit and doesn't have a cut off date. Are you referring to that account ?

You definitely CAN open with a cash deposit I've discovered. I phoned the Halifax and they said that you can open with a cash or cheque in a branch, but that all subsequent monthly payments for the remainder of the year must be by standing order.

I then re-read my 'Thank you for opening your new Halifax Regular Saver' letter. It states:

"Please call into your local branch with the signed application form or return it in the pre-paid envelope provided. If you are opening your account with cash or cheque, please bring along your initial deposit."

steviewander

Just to confirm that I went to put in my £500 as an opening deposit. They said it was fine and it went through on the day (just checked my balance online).

So my standing order is set up for the 1st of each month, meaning that I should get 13 lots of £500 in my regular saver, with the last standing order being 1st June 2009 (the 1 year annniversary not being until 27th 2009). So hopefully I'll get £6500 at the rate of 12% gross if I keep £5000 in my nominated saver account with them.