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Halifax current accounts - no interest by default

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  • 12-11-2009 8:14pm
    #1
    none
    Registered Users Posts: 569 ✭✭✭


    OK, it took them more than a month to set me up and they screwed it - intentionally or unintentionally - I don't know. I made an online application for their Savings account in the end of September and the next day I got a call from their representative which was impressive. I said I'd rather drop into a local branch to complete it and it was OK for him. In a couple of days went to the local branch and they convinced me to open a current account as well. Mainly, because of that famously high interest on it. They then started to send me all the relevant documentation which took more than a month, as I said. So when I first logged in to their online system this week, I found it quite nice, generally. And my transfer from RaboDefect was quite swift. But today, when I spent some time examining what's available to me and just the layout and functionality in general, I noticed a small link at the bottom. Click here for interest rate information. And you know what on that link? Well, basically the information that there are actually two current account types after 03/07/2009 and, surprise, surprise, my account is the no-interest one. I'm a bit upset about it and I think it's quite misleading to advertise their High Interest current accounts while when you actually try opening it, you get a different one without interest at all. By the way, I couldn't quickly find a link to those two current accounts from their home page, it's only available inside your account.


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    #2
    RoadKillTs
    Closed Accounts Posts: 1,710 ✭✭✭RoadKillTs


    Are you sure? Did you ring them?
    Are you not on 5%

    This is from the link you posted.


    Current Account Interest Rates - Accounts open from 03/07/09

    High Interest current account:

    Credit Interest Rate
    5% (5.12% EAR) on balances up to €1,500
    Overdraft
    13.5% (12.93% APR) variable
    Unauthorised Overdraft
    21.5% (23.75% APR) variable
    Buffer
    0%
    Switcher Overdraft
    0%
    Standard Current account:

    Credit Interest Rate
    0% EAR on all balances
    Unauthorised Overdraft
    23.5% (26.20% APR) variable


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    #3
    none
    Registered Users Posts: 569 ✭✭✭none


    I'm only sure that my account is listed as Standard, not as a High Interest one. Even though nobody told me about it before and now, as I mentioned, I find it hard to find that explanatory link on their site just by browsing or looking up something, i.e., it is not obvious or even hidden.

    I didn't talk to them yet. I may in a few days but my point here is that they put people on no-interests accounts even though their main selling point when recruiting new customers is that they give the highest interest on current accounts on the market.


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    #4
    100gSoma
    Registered Users Posts: 1,285 ✭✭✭100gSoma


    that does seem abit unfair. I can see nothing on the main website current account page about a "standard current account" only about the "high interest current account".
    It sounds like the current account you signed up for was pitched to you as the 5% one too. I'd ring them and ask them to reclassify the account or switch you over etc.


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    #5
    Jet Black
    Registered Users Posts: 3,845 ✭✭✭Jet Black


    How much did you say you would fund the account by each month?
    Was it more than 1500?


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    #6
    Jet Black
    Registered Users Posts: 3,845 ✭✭✭Jet Black


    If you would prefer not to lodge €1,500 monthly we have a Halifax Standard current account - a straightforward current account for your day-to-day banking needs. Credit Interest is not paid on balances in this account.

    Found it. This is the only reason they would not pay interest. If you did agree to lodge the 1500 each month and are not getting the interest, ring them.


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    #7
    none
    Registered Users Posts: 569 ✭✭✭none


    The only reason I agreed to open a current account is that notorious high interest. I didn't want it, I only wanted savings one, but they convinced me to sign up for the current account too. And that's what I got after it. I was going to do a EUR1500 trick just as they themselves advised but not sure it makes sense now.


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    #8
    Bajingo
    Registered Users Posts: 889 ✭✭✭Bajingo


    Do Halifax only offer accounts if you have a regular income or is there a student account?

    My income is'nt quite regular.


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    #9
    Jet Black
    Registered Users Posts: 3,845 ✭✭✭Jet Black


    Bajingo wrote: »
    Do Halifax only offer accounts if you have a regular income or is there a student account?

    My income is'nt quite regular.

    At the start you did but not anymore. I think its because there is a visa card with the account. Ulster bank have a visa debit too, but not sure how hard it is to get one.


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    #10
    100gSoma
    Registered Users Posts: 1,285 ✭✭✭100gSoma


    none wrote: »
    I was going to do a EUR1500 trick just as they themselves advised but not sure it makes sense now.

    the 1500euro trick is pointless really unless you are going to leave 1500euro in there permanently as interest is calculated daily. so you need to put 1500euro in, leave it for the month, then remove it and put it back in fron an entire month again etc to claim the 10euro a month interest or whatever it works out at.


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    #11
    6sic6
    Closed Accounts Posts: 1 ✭6sic6


    hi
    I don't understand if you can earn 5% over 1500eur , then the 2nd month 5% over 3000 eur etc. Or is it only the 5% over 1500eur and that's it?


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    #12
    100gSoma
    Registered Users Posts: 1,285 ✭✭✭100gSoma


    6sic6 wrote: »
    hi
    I don't understand if you can earn 5% over 1500eur , then the 2nd month 5% over 3000 eur etc. Or is it only the 5% over 1500eur and that's it?

    up to a maximum of 1500euro only. So the most you can ever get per month is about 10 or 11euro minus the DIRT.


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    #13
    Long Onion
    Closed Accounts Posts: 1,342 ✭✭✭Long Onion


    You were most likely convinced to open the current account due to the fact that the Branch would have a quarterly targets for opening new current accounts. I agree that the 5% interest is pretty worthless as the most it will net you is €7-€8 per month. You would be better with a decent deposit account and a fee free currant account.


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    #14
    G_R
    Moderators, Education Moderators Posts: 5,028 Mod ✭✭✭✭G_R


    OP, a family member set up a Halifax A/C a few weeks ago and when she was in the branch opening it, they told her that getting a High Interest Current Account was subject to approval by their Underwriters as they are relatively new to the country. They told her that if a HIC A/c was refused, they would open a standard one for her. Maybe thats what happened with your account?



    Before anyone asks, I have absolutely no Idea why the hell they need Underwriter approval to open an A/c with no overdraft, cheque book or Credit Card facility


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    #15
    none
    Registered Users Posts: 569 ✭✭✭none


    dannym08 wrote: »
    OP, a family member set up a Halifax A/C a few weeks ago and when she was in the branch opening it, they told her that getting a High Interest Current Account was subject to approval by their Underwriters as they are relatively new to the country. They told her that if a HIC A/c was refused, they would open a standard one for her. Maybe thats what happened with your account?



    Before anyone asks, I have absolutely no Idea why the hell they need Underwriter approval to open an A/c with no overdraft, cheque book or Credit Card facility

    I called them last week and they did mention something about underwriting. First, they said I wasn't going to lodge EUR1500 on a monthly basis and that's why they decided to put me on the standard rather than high interest one. Then they said that actually the application form stated that it's for the high interest account so there was probably some mistake. Don't know what they're going to do now but they promised to get in touch.
    I'm quite disappointed with the way they do it. Misleading advertising is a mild term as they push the high interest ads everywhere but never openly mention that they actually have a no interest account as well and that's the one you'll get if they won't like you due to some reason. No good.


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    #16
    100gSoma
    Registered Users Posts: 1,285 ✭✭✭100gSoma


    Long Onion wrote: »
    I agree that the 5% interest is pretty worthless as the most it will net you is €7-€8 per month.


    Worthless? :rolleyes: My last bank used to charge me 1 or 2 euro a month in charges on my current account. This is like the most worthwhile thing ever. 7 or 8euro a month plus no fees. delighted. :)


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    #17
    none
    Registered Users Posts: 569 ✭✭✭none


    They did get back in touch and asked for some confirmation of earning for the underwriters. I sent them a recent bank statement and they confirmed I'm now moved to the high interest account. Unfortunately, I'm going to get a new debit card as, apparently, there are some underlying differences between the two account types. Strange as I didn't notice any differences online with both sort code and account numbers staying as before.


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