Halifax 7%

[mike456]

Hi,

I started a halifax 7% account last year. I saved the max €750 that was allowed. I went in yesterday to the branch to close the account and they informed me that if I kep it open and kept doing the monthly contribution I would get 7% on the account balance next year again, This means I would get 7% on 11K. This seems like a great deal?

Do they really give 7% on all balances for the second year?

 

[Godfather]

Sorry I don't get it. If the yearly interest rate is kept at 7% and you keep saving of course you get 7% interest next year as well...

 

[mike456]

Sorry, I was under the impression that it was a one year term, after the year one you had to close the account and withdraw the money and start saving again. This seems like a great rate so.

 

[Godfather]

Hi Mike, sorry now I get it. No no there is no "expiry date" for the regular saver yet. And at the moment if they keep their rate at 7% I'll keep saving with them as well.

 

[ClubMan]

On the other hand the rate is variable so subject to change, there is no rate guarantee and the split of the 7% between interest and "bonus" (the latter only being paid if certain conditions are met) as described in the terms & conditions is not clear. These are not arguments against this product - I'm just trying to clarify some details.

 

[DrMoriarty]

The T&Cs certainly appear to contradict the description on the website; compare [broken link removed]:

All you have to do is lodge an amount between €10 and €350 each month for at least 12 consecutive months and make no more than two withdrawals during that time

...with blorg's quote here. And the website doesn't commit to any rate promise.

I plan to wait until my 12th (unaltered) installment is paid in early February and then seek written confirmation; I'll post back here then.