Halifax Current Account

Yorky

Having reviewed the Halifax current account following it's mention in Consumer Choice, I cannot understand why is not more mention of it. The 10% interest rate is unparalleled and could be used as a lump sum deposit account for €2000 along with the other providers for larger amounts.

The criteria for receiving this rate of interest is lodging €1500 per month to the account. This could be lodged by EMT once a month and then withdrawn as soon as it clears.

Am I missing something as to the reason that it is not getting rave reviews?

Publin

I am considering opening a Halifax current account to take advantage of the interest rate offered. I have tried the search function and read through a few threads about bad customer service etc. but couldn't really find anything that cleared up my concerns on the current account, but apologies if this has already been done to death on here! Essentially the questions I'm looking to get some feedback/information/opinions on are the same as the ones in the post above.

My understanding of it is that you need to lodge at least €1,500 to your account every month to avail of the interest rate of 10% (or there abouts) but it only applies on balances up to €2,000. If you go over this limit, does interest get applied at a severely reduced rate on your total balance, or do you still get the 10% interest up to €2k and then a lower rate on everything above that?

Also, I am currently banking with BOI, and I was thinking of setting up a direct debit of €1,800 a month come out of the account (just after pay day, say 20th of the month) into the Halifax account, and then transfer the funds back out by direct debit (19th of the month) back to BOI, thereby meeting the criteria of having lodged a minimum of €1,500 for the month, and also having not exceeded the €2k balance limit for the generous interest rate to apply, and also having the money in the account earning interest for 29 or 30 days of the month so as to earn as much interest as possible at the 10% rate. Well... that's what I'm thinking at the moment, not sure if there's a flaw in my logic here or a better way of doing things?

Advice/opinions/feedback much appreciated, thanks guys.

Yorky

I am doing precisely what I outlined in my original post with no problems to-date. I just diary the monthly deposit / withdrawal reminders

Jet Black

If you want to get the most interest you would be better off leaving 2k in the account at all times then once a month say the first lodge 1500 in and take it out the next day. All you have to do is make a lodgement once a month of 1500. It does not have to be in for any time period.

Also not interest on balances above 2k.

Publin

Thanks for the replies. The reason I was only going to lodge in €1,800 (well, that was an estimate), was to allow a bit of room for interest earned so that the account didn't exceed €2k, but I now see that it doesn't matter if it does over €2k (except that I won't earn interest on the balance above this amount).

So say I open the account, deposit €2k in it.... Real rookie question here but would setting up a direct debit from my BOI account into Halifax for the 20th of each month for €1,500, then on the 21st of the month a direct debit from Halifax back to BOI for the €1,500 satisfy the conditions? (Yorky I noticed you said you schedule it in your diary each month, just wondering if a direct debit would take care of this for me instead)

I've never really used BOI online and don't have easy, regular access to a BOI branch for arranging transfers of money so if the direct debit is not an option, does anyone know how if I could make the transfers back and forth online/using telephone banking (as I said, I've never really used BOI banking online and I've no idea what Halifax's online banking system is like either).

Thanks again.

Yorky

I should have been more explicit; I maintain a balance of €2000 in the account and deposit an additional €1500 by EFT once a month.When the deposit clears(normally two to three days) it automatically accrues the applicable interest so I then withdraw the €1500 deposit plus interest by EFT. By doing this the balance only goes above the ten percent threshold (€2000) for one day at the most.

I know of no other way of doing this but am open to suggestions.

Jet Black

You can make a lodgement in the branch it is a clear balance straight away. If you are making the trasfer from BOI you will need to register the account you are transfering to then wait a couple of days for an access code to be posted. With Halifax you can set it up straight away. It would be a once off payment if you are doing it your self or a standing order if you are doing it the same time every month. Takes 3-5 working days to clear. You can do it on the phone aswel.

jaffa20

Correct me if i'm wrong but how does halifax allow interest to be gained on funds which do not remain in the account. I've never heard of this offer but i don't see how it works. Very confusing, i'd be interested in this though, what exactly is the account with halifax called?

Straight Flush

I believe the answer to my question is No, but does the EUR1500+ monthly lodgement have to be lodged in one lump sum?

I'm making two EUR1000 lodgements to my Halifax Current a/c at the moment so I assume I'm okay for the interest.. Am I?

Davy

Straight Flush wrote: »

I believe the answer to my question is No, but does the EUR1500+ monthly lodgement have to be lodged in one lump sum?

I'm making two EUR1000 lodgements to my Halifax Current a/c at the moment so I assume I'm okay for the interest.. Am I?

Yes, your correct

jaffa20

Straight Flush wrote: »

I believe the answer to my question is No, but does the EUR1500+ monthly lodgement have to be lodged in one lump sum?

I'm making two EUR1000 lodgements to my Halifax Current a/c at the moment so I assume I'm okay for the interest.. Am I?

So you will be getting 10% interest on the Euro2000 you have in your account throughout the whole year only and that has to stay in the account. Plus you have to lodge 1500e each month to secure this interest for 160euro after DIRT??? A measly 13euro per month interest for this hassle. It doesn't appeal to me so much anymore. I'd rather keep boi as my main account and not switch so lodging and withdrawing again would be a pain unless it was worth it.