Unfortunately, this deal is no longer valid
10% Interest rate on Halifax Regular Savings Account
421° Expired

10% Interest rate on Halifax Regular Savings Account

77
Posted 12th Jun 2008

This deal is expired. Here are some options that might interest you:

Halifax Regular Saver
Save between £25 and £500 every month for 12 months by standing order and get a great rate of 10.00% AER fixed for a year.

Open and make your first payment by 20 July 2008!
Set up a monthly standing order from your bank account - you can make additional deposits by standing order too, as long as the total each month doesnt exceed £500
Change the monthly amount you save whenever you want in branch, by phone or online
No withdrawals allowed
Only one account per customer
When the years up, your savings and interest are transferred into a nominated savings account which you'll be asked to open when you open you Halifax Regular Saver. Your Regular Saver account remains open, the interest rate applicable at the time is fixed for another year and you simply continue to save.

What's more, if you have at least £5,000 to invest into your nominated account, we can help you make the most of your savings with an even bigger rate. Call 0845 601 8150 or speak to a colleague in branch for more details.

The nominated account can be:

Halifax Guaranteed Saver
Variable rate Halifax Web Saver
Halifax Premium Savings Direct
Halifax Saver Reward
Halifax Instant Saver
If you already have one of these accounts, speak to a colleague about how you can make this your nominated account for Regular Saver.
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77 Comments
ROSHAN;2300836

Voted cold, This isn't a good deal. It seems to be a ploy to get people … Voted cold, This isn't a good deal. It seems to be a ploy to get people in through the door.Another problem is the fact that the Halifax is next in line to go bust. Just look at the share price:-12/June/2008 end of close price per share: £2.8312/June/2008 end of close price per share: £10.03Initially I didn't think Halifax would go down the pan but now since all investors have run off with their own money it seems doomed.




[SIZE="4"]You are covered by the Financial Services Compensation Scheme for all amounts less than £35,000 which means there is very little risk.

Also, if everyone goes for this account they might get enough money to cover their losses in the sub-prime, 125%-mortgage, buy-to-let, negative-equity, self-certified-income-liers and mortgage-fraud problems.[/SIZE]
pluves1;2301192

Not sure whether to vote this hot or cold:?If you are thinking about … Not sure whether to vote this hot or cold:?If you are thinking about moving savings you have already to fund this monthly payments the £325 on £6000 equates to around 5.4% which doesnt seem that attractive



You only have an average of £3,000 in the account over the 12 months. If you have £6,000 you could put it all in an instant access account paying a high interest rate set up a standing order from the instant access into the Halifax 10% regular savings account.

This way you would get about £3,000 at 5% + £3,000 at 10% making a total of £450 interest from your £6,000 which would be a total of 7.5%.
tanikk£;2300928

But this is Halifax ....



:-D
Good deal, remember that it's a regular saver so you can't compare it to standard savings accounts. It's good if you want to save a bit of your income but not so good if you want to put a lump sum in. Don't get me wrong, it's still good if you want to put a lump sum in it's just you can't put it all in straight away so you'll only get effectively 7.5% as caparn1 says above.


"What's more, if you have at least £5,000 to invest into your nominated account, we can help you make the most of your savings with an even bigger rate"

Interested as to what they mean here, an even bigger rate must be > 10%, therefore I want to invest a lump sum at a rate greater than 10%. Now that would be good!

Like someone said earlier, the kid account is better as you don't pay tax. You can have as many accounts as you like as long as it's a different kid or a different adult, so in a family with 2 kids that's generally 4 accounts. You can even use other people's kids (with their permission of course) to save under. Even better if you're a higher rate tax payer, you could earn a good rate still.
This is good, it seems better than my ISA
If you use a childs account, I presume it is registered in the parents name, so taking the money out is easy when you want to withdraw? or would the cheque be in the childs name?
I opened one of these a couple of years ago when they did it for kids. You you just set up a direct debit to go in once a month, but if you say put in £100 a month and then reduce it down one month you cant put it back up again. And any withdrawal cancels the agreement. I will definatley be opening another.
Just checked the account, my son paid in £1100. over the year and got £92.55 interest being a non tax payer.
TRACEY CRAWSHAW;2302663

Just checked the account, my son paid in £1100. over the year and got … Just checked the account, my son paid in £1100. over the year and got £92.55 interest being a non tax payer.



Just checked, my kids paid 1200 over the year and got £65.60.

So how comes you got so much more?
Just done the math!

£65 is the expected return after 1 year of putting £100 away every month, at 10% gross.

10.00 (12/12ths) +
9.16 (11/12ths) +
8.33 (10/12ths) +

etc etc etc

0.83 ( 1/12th)

Or 78/12ths x 10 = £65

No idea how you see £90+
Ofcourse it's a ploy to get people through the door! Get attracted by a high rate like this and then they try to get you to sign up to other products too, but all you need to do is say 'no thankyou' and just take this product on its own! All companies do this but you, the consumer, has the power to just choose the deal you want.

As already mentioned, the potential interest you can earn is £335 (before tax) over the 12 months if you invest the full 500 a month. If you have a big lump sum you want to invest straight away then you will probably earn more in a regular savings account or an ISA, and if you can fund this regular savings account with a direct debit each month from the savings account.

It's the best regular saver on the market at the moment without any strings (such as you have to change your personal account to them) so it's a good deal. Period.
BUT if you can't afford the £500 a month and you have kids and you are a higher rate tax payer, the children's account is a better deal.

Also, Halifax hope that after the 1 year, you invest your lump sum in another of their products, thus getting 2 lots of business from you!
I believe if you have £5000 to spare up front, they offer you 12% Gross AER.
theyiddo;2321517

I believe if you have £5000 to spare up front, they offer you 12% Gross … I believe if you have £5000 to spare up front, they offer you 12% Gross AER.



Surely not? So someone with 50k could put it in there and get £6,000 a year from it? Assuming not a tax payer.
Benjimoron;2321668

Surely not? So someone with 50k could put it in there and get £6,000 a … Surely not? So someone with 50k could put it in there and get £6,000 a year from it? Assuming not a tax payer.



I think £5000 is the exact amount! The customer services guy on the phone definitely mentioned if I had £5000 to deposit upfront, the amount for the Regular Saver would be 12%....I don't have £5k, so said no thanks and didn't ask anymore. However, I get the feeling that they would probably put the £5k in a normal savings account, and only give 12% on the monthly standing orders into the Regluar Savings account.

Perhaps someone else can confirm.
The £5000 has to go into a normal account (you have to open two) but then the other account will earn 12%.

It really is a good deal, I opened one up today over the phone and was very easy.
theyiddo;2321983

I think £5000 is the exact amount! The customer services guy on the phone … I think £5000 is the exact amount! The customer services guy on the phone definitely mentioned if I had £5000 to deposit upfront, the amount for the Regular Saver would be 12%....I don't have £5k, so said no thanks and didn't ask anymore. However, I get the feeling that they would probably put the £5k in a normal savings account, and only give 12% on the monthly standing orders into the Regluar Savings account.Perhaps someone else can confirm.



Thanks, bit misleading of them. Makes it sound like you'll get a bigger rate than 10% on your £5,000, in fact you'll get a rubbish rate on the £5,000 and a slightly better rate on the regular saving.

Still better off putting it in a kids name though.
10% on its own is an incredible rate, even after tax it beats nearly all the ISAs ive seen.
funguy03;2325923

10% on its own is an incredible rate, even after tax it beats nearly all … 10% on its own is an incredible rate, even after tax it beats nearly all the ISAs ive seen.



Regular saver though, not the same thing. This gives about 7.5% assuming you've got the money @ 5% in the meantime.

Great for saving some of your wages but not so good for investing a reasonable sum of money.
Lol at people thinking HBOS will go bust.
ghost101;2351039

Lol at people thinking HBOS will go bust.



According to their "We are sailing on Titanic" ad, they will not bust... they will sink.
You have to keep £5,000 in your nominated account for the full year in order to get 12%
thomasg;2397384

You have to keep £5,000 in your nominated account for the full year in … You have to keep £5,000 in your nominated account for the full year in order to get 12%



12% on your regular savings. Not worth it to be honest. If they gave you 12% on your 5,000 like they make it sound then that would be interesting.
Benjimoron;2397718

12% on your regular savings. Not worth it to be honest. If they gave you … 12% on your regular savings. Not worth it to be honest. If they gave you 12% on your 5,000 like they make it sound then that would be interesting.



Definitely worth it. They give you 6.25% on the 5 grand. They give you 12% on your regular saver account. Have another instant access account where you get 6.5%(for simplicity assume this doesnt change) and set up a standing order.

On the 11 grand you have to have to make this work, you get a little under 8% on your money.

If instead you dont put the 5 grand in the nominated account earn 10% on the regular saver but put the 5 grand in a 6.5% instant access account, the rate you earn on the 11k is alittle under 7.5%. So basically youre forgoing 0.5% on the 11 grand for better access to the 5k.
You're forgetting the tax you'll have to pay on the £5, put it in an ISA.
i just went into Halifax today. asked for the actual rates. they printed out a rates calculator based on £500 saved every month giving you £6,000 at the end of the year.

to cut short the explanation of the rates (divided by 12 months etc etc) ....
unfortunately the gross interest of that sum is £325 and net interest (after tax) comes to £260
which means gross rate as a percentage is 5.41666667 and net rate as a percentage is 4.3333333%

yes 5.416 basically before tax.

better off elsewhere methinks. anyone has a better idea?
kippy;2443058

i just went into Halifax today. asked for the actual rates. they printed … i just went into Halifax today. asked for the actual rates. they printed out a rates calculator based on £500 saved every month giving you £6,000 at the end of the year.to cut short the explanation of the rates (divided by 12 months etc etc) ....unfortunately the gross interest of that sum is £325 and net interest (after tax) comes to £260which means gross rate as a percentage is 5.41666667 and net rate as a percentage is 4.3333333%yes 5.416 basically before tax.better off elsewhere methinks. anyone has a better idea?


But you've not taken into account of the rate the money is earning while it is not in the Regular Saver. I have my money in a 6.25% Tesco Internet Saver and transfering my monthly payments by Faster Payments each month to the Halifax Regular saver and I average over 8.00%gross.
ah no i was working on the assumption people are putting away a bit of their salary (not money already saved because shdnt that be on ISA (tax free) and other investments before this.

the point is ... is it false advertising?
But were you expecting to get 10% on £6000 from day one???
Your final £500 payment will be in the 10% account for only 1 month. Were you expecting 12 months interest on this final payment??
no i expected (from what was explained at initial meeting w them and ads) after a year of saving £500 a month into a halifax regular saver account, i shd be getting 10% at the end of that year ie £600 in interest earned before tax. as in the 10% is calculated after the whole year. i am happy to put aside £6k now but they said max was £500 a month, that's why.

ok that's a bit naive to say 10% AER is final but it shd be explained about the 1st month 10% ie £50, 2nd month £45.83, 3rd month £41.67, and so on ... till the final 12th month you get £4.17.

---edit
i was even told in beginning if it went past £5,000 it would earn me 12%.

passed by their billboard again later today. the ad says "a massive 10%" with the AER very tiny.

i guess i was disappointed a little. maybe i shd move money to buy shares at low low price now, so it shd be worth more when market swells again. or how about the guaranteed bond?
kippy;2443103

i was even told in beginning if it went past £5,000 it would earn me 12%.


This is why I always read the term and conditions and NEVER rely on what you are told by staff of ANY bank.
The bit about getting 12% if it went pass £5000 is complete and utter rubbish. You will only get 12% on the regular saver if you invested another £5000 from day one in a nominated account.
Speculator;2443175

This is why I always read the term and conditions and NEVER rely on what … This is why I always read the term and conditions and NEVER rely on what you are told by staff of ANY bank.The bit about getting 12% if it went pass £5000 is complete and utter rubbish. You will only get 12% on the regular saver if you invested another £5000 from day one in a nominated account.



well yes i just received my terms and conditions yesterday in the post which is why i went str8 to them today to enquire.

they defo didnt tell me about that 12% part was hooked on what you just said, which makes more sense. also i just read the other posts in same thread a few pages before about some people who have also been told the same as i was told, for sure so it's not just me being cautious here.

hope this helps anyone else.
kippy;2443085

ah no i was working on the assumption people are putting away a bit of … ah no i was working on the assumption people are putting away a bit of their salary



Which is what these accounts are designed for, as you wouldn't have the money at the start of the year you wouldn't be able to earn interest on it would you??
I can't believe someone would think they were going to get 10% interest on the the entire £6k if they paid in £500pm?

If you calculate an average weight for the total of your payments into the account over the whole year, they will only come to £3250 (£500 for 12mths, another £500 for 11mths....etc)

If what you expected were the case, then in the final month, the interest you would expect to receive on the £500 final months payment is £50...and this would work out and an Interest Rate of 120% per annum. I don't know any bank that would pay this!!!!!
let me clarify again ....

i was dubious if it was too good to be true but the staff at Halifax in my first meeting assured me yes it was 10% at the end of the year you get a lump sum. btw i do have a big fat lump sum to put in if that was the case to earn 10% so it isnt such a big deal just Halifax shouldnt advertise about that if their front staff is not able to tell the difference and give new customers wrong info to reel them in ... obviously she hadnt a clue! and there are way too many financial products in the market all with different names every year. god i miss my trusty financial advisor who moved to a different country (like lewis!) ...
The initiative taken for the concern is very serious and need an attention of every one. This is the concern which exists in the society and needs to be eliminated from the society as soon as possible.



High Yield Savings Account
Edited by: "Oliverrandel" 28th Oct 2010
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