Halifax Launches 6% Regular Savings Account


D

Daytona

Halifax Launches 6% Savings Account
[18-02-04]

Halifax, the UK's largest provider of liquid savings, today announces it is to
launch the first in a number of new savings products.

Halifax Regular Saver will be launched on 1st March 2004 and the account will
offer customers who save a set amount every month for one year, a fixed rate of
6% Gross (6.05% AER) on their savings.

Research conducted for Halifax by NOP World (see Editors Notes), shows that
almost 19 million adults do not have any savings at all and, of those that do
save, only half again save regularly. Interestingly, according to the research
43 per cent of people (5.5 million), who do not save regularly, said they would
be encouraged to save on a regular basis if there was an account which only
required a small monthly deposit (£25 was the example used) and that paid a good
rate of interest.

Key Features of the account:

Deposit between £25 and £250 each month by standing order for twelve consecutive
months.
6.00% Gross interest, fixed for 12 months.
Open to new and existing customers aged over 16.
At maturity, the capital and interest is swept into an instant access account
chosen by the customer at the outset e.g. Halifax Web Saver, Halifax Premium
Savings Direct, Halifax Instant Saver account.
Limited to one account, per customer, per year.
If the account is closed early, the rate of interest will be at the Web Saver
rate (without card) (Web Saver rate is 4.30% with effect 19th February).
Nick Robinson, head of savings at Halifax, said:

"People have lost sight of the importance of saving on a regular basis. This
new product and its market-leading interest rate should change all that. There
will now be a real incentive for people to start savings again."

Editors' notes
Halifax is the UKs number one savings provider with a market share of around 16%
of household sector liquid assets.

Halifax Monthly Saver continues to be available in addition to Halifax Regular
Saver.

For further information customers can call 08457 26 36 46 or visit our Branches
on visit our websites: www.halifax.co.uk & www.bankofscotland.co.uk

Our unique "Savings Review" has already seen over £35 billion in savers' money
moved to better paying savings accounts - this year we are making the service
even better. Customers will be able to take our 15-minute review, where a
savings expert will work through their needs to make sure they've got the right
savings products for them. We will provide a clear solution and commitment to
review their position in the future to ensure their savings keep up with their
changing lifestyle.

The research was conducted for Halifax by NOP World. 967 adults aged 18+ were
interviewed over the telephone between 9th and 11th January 2004.

The product features of the new Halifax Regular Saver are:

Product Features

Term:
1 year. All funds, including interest, swept to nominated account on
anniversary.

Minimum Monthly Investment:
£25, by automated credit only (except for initial transaction which can be
cheque, cash or transfer from other Halifax account.)

Maximum Total Monthly Investment:
£250

Maximum Total Annual Investment:
£3,000

Interest
Fixed for one year at the rate applicable on day first credit is made.

Calculated daily and paid on anniversary of account opening.

On maturity, the interest and capital are swept to the account chosen by the
customer at opening.

Paid net of tax unless R85 completed.

Interest Sweep to Nominated Account
Customers can choose one of the following accounts at opening:

Halifax Instant Saver

Halifax Saver Reward

Halifax Premium Savings Direct

Halifax Web Saver.

Number of Account holders
Sole accounts only one account per customer.

Minimum Age
16

Monthly Credits
Automated Credits of up to £250 per month permitted.

Standing Orders

Standing Orders from Halifax accounts must be received by 28th of each month but
do not need to be on the same date each month.

Standing Orders from other banks/building societies need to be set up for no
later than 23rd of each month to ensure they are received in the Regular Savings
account in time.



No monthly payments can be missed during the year.

Withdrawals
No withdrawals are allowed prior to maturity.

Early Closure
If the account is closed early, interest will be calculated at the Web Saver
(without card) rate from the date of the last anniversary (or opening) to the
date of closure.

Breach of conditions e.g. missed payment
The account will close and funds will earn Web Saver (without card) rate for
the investment period and be swept to nominated account.

<URL:http://www.hbosplc.com/media/pressreleases/articles/halifax/2004-02-18-00.asp?fs=/media/press_releases.asp>
 
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D

Daytona

Deposit between £25 and £250 each month by standing order for twelve consecutive
months.
6.00% Gross interest, fixed for 12 months.
At maturity, the capital and interest is swept into an instant access account
chosen by the customer at the outset e.g. Halifax Web Saver, Halifax Premium
Savings Direct, Halifax Instant Saver account.
Which, after a second look means ~3.22%pa.

Gross.

Good game, good game.....


Daytona
 
R

Ronald Raygun

Daytona said:
Which, after a second look means ~3.22%pa.

Gross.
No it doesn't. If you invest £100pm for 12 months, you will earn
interest totalling £39. That may only be 3.25% of £1200, but of
what relevance is that if your mean balance has only been £650?

Sure, you're missing out on spot of compounding, but that's par
for the course.
 
D

Daytona

No it doesn't. If you invest £100pm for 12 months, you will earn
interest totalling £39. That may only be 3.25% of £1200, but of
what relevance is that if your mean balance has only been £650?

Sure, you're missing out on spot of compounding, but that's par
for the course.
You are, of course, absolutely correct <g>
 
R

Ronald Raygun

Daytona said:
You are, of course, absolutely correct <g>
On the other hand, it has to be said that if you want to take
advantage of the 6% rate not by saving from income but by moving
existing savings from, say, a 4% account, then if you move the
maximum possible £3000 of savings (at the maximum permitted rate
of £250 a month) then you'll only be £26 better off at the end of
the year (net of standard rate tax). Hardly worth the effort,
given that you have to make the deposits by standing order, and
presumably take manual steps to move funds from your 4% savings
account to the current account from which the SO will operate.

Also, there'll be some loss of interest due to having to transfer
the money out of the 4% account before it starts earning in the
6% account. Admittedly that won't be much, perhaps 30p.

And you can bet your boots that as soon as the year is up, the
rates will drop to more conventional levels.

But I should have remembered it's bad form to start a sentence,
never mind a paragraph, with a conjunction.
 
T

Tiddy Ogg

On the other hand, it has to be said that if you want to take
advantage of the 6% rate not by saving from income but by moving
existing savings from, say, a 4% account, then if you move the
maximum possible £3000 of savings (at the maximum permitted rate
of £250 a month) then you'll only be £26 better off at the end of
the year (net of standard rate tax). >
And you can bet your boots that as soon as the year is up, the
rates will drop to more conventional levels.
Could be useful though. Assuming you have other savings, and like me,
are on benefits which the government wants to pay direct into a bank
account it might well be worth while sticking it there and withdrawing
other savings. (this of course, is where the effort comes in.)

- Tiddy.

Don't try contacting me at The Mutual address above,
It's been spammed to death.
Try via my perverted poetry site:
http://www.btinternet.com/~tiddyogg
 
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A

Annon

This is crap. The money at the end of the year gets put into some other dumb
account, rather than staying in the savings account, so you can add to it
next year and so on. I'll stick with Cahoot.

Kind Regards,
Shane Cook.

Daytona said:
Halifax Launches 6% Savings Account
[18-02-04]

Halifax, the UK's largest provider of liquid savings, today announces it is to
launch the first in a number of new savings products.

Halifax Regular Saver will be launched on 1st March 2004 and the account will
offer customers who save a set amount every month for one year, a fixed rate of
6% Gross (6.05% AER) on their savings.

Research conducted for Halifax by NOP World (see Editors Notes), shows that
almost 19 million adults do not have any savings at all and, of those that do
save, only half again save regularly. Interestingly, according to the research
43 per cent of people (5.5 million), who do not save regularly, said they would
be encouraged to save on a regular basis if there was an account which only
required a small monthly deposit (£25 was the example used) and that paid a good
rate of interest.

Key Features of the account:

Deposit between £25 and £250 each month by standing order for twelve consecutive
months.
6.00% Gross interest, fixed for 12 months.
Open to new and existing customers aged over 16.
At maturity, the capital and interest is swept into an instant access account
chosen by the customer at the outset e.g. Halifax Web Saver, Halifax Premium
Savings Direct, Halifax Instant Saver account.
Limited to one account, per customer, per year.
If the account is closed early, the rate of interest will be at the Web Saver
rate (without card) (Web Saver rate is 4.30% with effect 19th February).
Nick Robinson, head of savings at Halifax, said:

"People have lost sight of the importance of saving on a regular basis. This
new product and its market-leading interest rate should change all that. There
will now be a real incentive for people to start savings again."

Editors' notes
Halifax is the UKs number one savings provider with a market share of around 16%
of household sector liquid assets.

Halifax Monthly Saver continues to be available in addition to Halifax Regular
Saver.

For further information customers can call 08457 26 36 46 or visit our Branches
on visit our websites: www.halifax.co.uk & www.bankofscotland.co.uk

Our unique "Savings Review" has already seen over £35 billion in savers' money
moved to better paying savings accounts - this year we are making the service
even better. Customers will be able to take our 15-minute review, where a
savings expert will work through their needs to make sure they've got the right
savings products for them. We will provide a clear solution and commitment to
review their position in the future to ensure their savings keep up with their
changing lifestyle.

The research was conducted for Halifax by NOP World. 967 adults aged 18+ were
interviewed over the telephone between 9th and 11th January 2004.

The product features of the new Halifax Regular Saver are:

Product Features

Term:
1 year. All funds, including interest, swept to nominated account on
anniversary.

Minimum Monthly Investment:
£25, by automated credit only (except for initial transaction which can be
cheque, cash or transfer from other Halifax account.)

Maximum Total Monthly Investment:
£250

Maximum Total Annual Investment:
£3,000

Interest
Fixed for one year at the rate applicable on day first credit is made.

Calculated daily and paid on anniversary of account opening.

On maturity, the interest and capital are swept to the account chosen by the
customer at opening.

Paid net of tax unless R85 completed.

Interest Sweep to Nominated Account
Customers can choose one of the following accounts at opening:

Halifax Instant Saver

Halifax Saver Reward

Halifax Premium Savings Direct

Halifax Web Saver.

Number of Account holders
Sole accounts only one account per customer.

Minimum Age
16

Monthly Credits
Automated Credits of up to £250 per month permitted.

Standing Orders

Standing Orders from Halifax accounts must be received by 28th of each month but
do not need to be on the same date each month.

Standing Orders from other banks/building societies need to be set up for no
later than 23rd of each month to ensure they are received in the Regular Savings
account in time.



No monthly payments can be missed during the year.

Withdrawals
No withdrawals are allowed prior to maturity.

Early Closure
If the account is closed early, interest will be calculated at the Web Saver
(without card) rate from the date of the last anniversary (or opening) to the
date of closure.

Breach of conditions e.g. missed payment
The account will close and funds will earn Web Saver (without card) rate for
the investment period and be swept to nominated account.
<URL:http://www.hbosplc.com/media/pressreleases/articles/halifax/2004-02-18-
00.asp?fs=/media/press_releases.asp>
 
A

Alex

This is crap. The money at the end of the year gets put into some other
dumb account, rather than staying in the savings account
So? For that year, you're getting 6% AER. Sure, it may not be a great deal
of money but it's better than a poke in the eye with a sharp (or blunt)
stick.
 
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T

Thom

Alex said:
So? For that year, you're getting 6% AER. Sure, it may not be a great deal
of money but it's better than a poke in the eye with a sharp (or blunt)
stick.
Alo one of the accounts (the web saver?) actually pays quite competitive
interest (4.3%? or so).

Thom
 

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