Written by Karen Bryan
Halifax savings rates continue to look distinctly uncompetitive with the latest kid on the block, the Halifax Reward Saver. Now in order to get the measly 2.5% (variable) headline rate for 12 months, you need to have a qualifying current account such as the Halifax Reward Current Account into which you pay a minimum of £1000 a month. If you make more than four withdrawals in the 12 month period from opening the savings account, the interest rate drops to 2.25%, not just for the period after you’ve made the fifth withdrawal, but for the whole 12 months.
It almost seems like the Halifax is penalising existing current account holders, as anyone can get 2.8% (made up of a 2.7% fixed rate 12 month bonus and 0.1% variable rate) in the Halifax Online Saver account.
The Santander e-Saver Issue 6 is currently paying 3.0%, comprising a 12 month variable bonus rate of 2.5%, plus a variable underlying rate of 0.5%, so it’s looking like a better home for instant access savings than the Halifax accounts.
The chance to win one of three £100,000 prices in the Halifax prize draw isn’t enough of a lure for me to compensate for their lacklustre savings account offerings. I adhere to ‘a bird in the hand’ approach when selecting where to save.
C’mon Halifax, you’ll have to do better than pathetic accounts like the Halifax Reward Saver.