Halifax explains '12 month' rule on savings after customer questions
A customer contacted Halifax after receiving a letter about the account change
Halifax has explained the rules for one of its savings accounts
(Image: Getty )
Halifax has provided clarity for its customers about an important change to many savings accounts. The issue came to light after customer asked the bank to explain a letter they had received.
The letter mentioned that their bonus saver was "ending soon" and mentioned an instant saver account. Halifax clarified the situation by stating: "After 12 months the account changes to an instant saver."
The Bonus Saver account pays 3.05 percent interest over a 12-month period. This is as long as you make no more than three withdrawals are within that year. Exceeding this limit by making four or more withdrawals means the interest rate drop significantly to 0.95%.
Interest on the Bonus Saver is paid out monthly, coinciding with the date the account was opened. The account can be started with a mere £1 deposit and allows for up to £9 million to be added.
However, at the end of the 12-month term, the account transitions to an instant saver, which comes with a much lower interest rate of 1.35%, equating to a decrease in the interest rate of 1.7%. Bonus Saver account holders may also want to take note that the interest rate is subject to change as it is variable.
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This means Halifax can alter it at any time. The bank says on its website: "We'll always let you know of any planned changes to the rate.
"Our account conditions explain when and how we do this. For example, we might change it if it costs us more to run this account for you." The account can be managed online, via the app, in branch or over the phone.
If you open the account and later decide it's not for you, you can cancel the account free of charge within 30 days of opening. Halifax customers with an easy access savings account have the option to convert it into a bonus saver without needing to open a new account.
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In other banking news, Nationwide Building Society customers may want to act now as they only have a few days left to take advantage of a £200 switch offer. Existing members can receive the bonus cash when switching from a non-Nationwide account to a new or existing FlexPlus, FlexDirect or FlexAccount account.
The offer is available until Thursday, July 10. You can check your eligibility using the checker tool on the Nationwide website.
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