Written by Karen Bryan
Update 22 January 2014 – The rate of interest paid on the Halifax Everday Saver has now plummeted to a derisory 0.75%, made up of a 12 month fixed rate bonus on 0.25% and a 0.5% variable underlying rate.
Update 11 June 2013 – The Halifax Everyday Saver rate has been reduced to 1%, made up of a 12 month fixed rate bonus and a 0.5% variable rate. Therefore I’m glad that I opened an account a couple of months ago which is still paying 1.5%. The 12 month bonus rate dance continues.
Interest rates on savings accounts seem to be falling on a daily basis. The bonus rate period on our Santander eSaver, currently paying 3.2%, expires in June and our Halifax Reward Saver, currently paying 2.5%, expires in August. I’m also aware that the 3% variable rate being paid on balances between £3,000-£20,000 in the Santander 123 Cashback Current Account could drop at any time.
Therefore, I’m on the lookout for any semi-decent instant access savings account, which has at least some element of fixed interest rate and unlimited withdrawals, as a ready-to-go backup option in case the rate paid on the Santander current account drops after the Halifax Reward Saver matures.
There’s certainly nothing great on offer out there. Santander’s eSaver Issue 10 is paying a derisory 1.25% (variable). When I had a quick look on the Halifax web site, I saw their Everyday Saver paying an interest rate of 1.5%, made up of a 12 month 1% fixed rate bonus plus a 0.5% variable rate. There are no withdrawal limits on the account and you can open it with as little as a £1 deposit.
I decided to open a Halifax Everyday Saver. As an existing customer, it only took around two minutes to apply for the account. I may never use the account, if either Santander maintain the 3% paid on the 123 Current Account, or if I can find another instant access account which pays more than the 1.5% on the Halifax Everyday Saver.
Interest rates correct on 17 April 2013