Halifax 10% interest Current Account

johnnyskeleton

This account pays 10% interest on up to €2,000 provided that at least €1,500 is lodged to the account each month.

Would it be possible to run it as a savings account like so:

1) Lodge €2,000 originally and keep it there.
2) every month transfer €1,501 from your current account into the halifax account by standing order
3) transfer the money back to your current account by standing order 3 days later?

Thanks for any replies.

brettmirl

Why not just move your current a/c over to Halifax altogether?

johnnyskeleton

mick_irl wrote: »

Why not just move your current a/c over to Halifax altogether?

Because I already have a current account that works well for me (and other accounts such as regular savings etc) and I'm looking to find the best rate for some savings. The 10% interest is double the rate I would get in a normal savings account, so it makes sense to me to try to do it this way. Is there a downside that I don't see?

SanNJay

sounds like a good idea. you'd be making 200 a month on a 2000 lodgement. is that right?

good little lump sum. i'd say

how long do you've to keep the account open for.

I've just spotted this while looking into this account

"How it works:
Simply lodge €1,500 to your account each month - you don't even have to keep it there for the entire month. Earn 10.47% EAR interest on balances up to €2,000"

Its the 'up to' bit i don't understand. What interest do you get on balances over 2000? and also interest is calculated daily so if you move the money after three days you only get interest on three days.

Also, EAR is subject to dirt of 21% so it's not 10%

stepbar

SanNJay wrote: »

sounds like a good idea. you'd be making 200 a month on a 2000 lodgement. is that right?

good little lump sum. i'd say

how long do you've to keep the account open for.

I've just spotted this while looking into this account

"How it works:
Simply lodge €1,500 to your account each month - you don't even have to keep it there for the entire month. Earn 10.47% EAR interest on balances up to €2,000"

Its the 'up to' bit i don't understand. What interest do you get on balances over 2000? and also interest is calculated daily so if you move the money after three days you only get interest on three days.

Also, EAR is subject to dirt of 21% so it's not 10%

Where exactly are you getting your information from because it's totally incorrect.

Number of points - The max interest you could earn is 10.47% EAR per year on 2k. Which is give or take 200eur gross (assuming you kept 2k in for the full year). DIRT tax is 20%. Interest is calculated daily so yes if you take the money out after 3 days you get 3 days interest. It's that simple.

http://www.halifax.ie/index.jsp?1nID=94&pID=520&nID=526 for all the info.

homer911

SanNJay wrote: »

sounds like a good idea. you'd be making 200 a month on a 2000 lodgement. is that right?

good little lump sum. i'd say

how long do you've to keep the account open for.

I've just spotted this while looking into this account

"How it works:
Simply lodge €1,500 to your account each month - you don't even have to keep it there for the entire month. Earn 10.47% EAR interest on balances up to €2,000"

Its the 'up to' bit i don't understand. What interest do you get on balances over 2000? and also interest is calculated daily so if you move the money after three days you only get interest on three days.

Also, EAR is subject to dirt of 21% so it's not 10%

€200 per YEAR, gross

SanNJay

CHILLLLLLLLL everyone obviously i meant per year, typo!

and the quote i got was off the halifax website.

so here's a scenario, an please don't be getting mad at me i'm just trying to understand it,

for round figures, say i have 9000 and i invest 1500 a month for six months, then i take it all out and do the same for the second six months... how much interest do i earn?

forget that above point, you only get 10% on the first 2000.

Sandra