One financial services provider has recently altered the terms and conditions on some of its oldest savings accounts.
Starting in this March, several low interest rate accounts from Halifax will be subject to harsh new withdrawal penalties. This comes on the heels of another Halifax announcement concerning a deliberate delay of four additional days for interest payments from another building society or bank.
Nine old Halifax savings accounts will be affected by the new rules. The savings products in question are the Premium Saver Direct, Monthly Saver, ISA Saver, Extra Income Saver, 60 Day Gold, Bonus Gold, Guaranteed Saver, Saver Reward, and Halifax Instant Saver offerings.
Not one of the nine savers in question pays in excess of 0.4 per cent before basic tax. Over half of the products – five in fact- offer only 0.1 per cent, the equivalent of a £1 return on a £10,000 deposit.
Added now to the mix are new changes scheduled to go into effect on the 20th of March of this year. The Halifax Extra Income Saver will have a notice requirement of 60 days if the account falls below the £500 mark or face a deduction of 60 days’ interest as a result. As the saver only offers 0.2 per cent, a loss of 60 days’ worth of interest on £500 works out to the nominal fee of 8p, industry experts question the reasoning behind the new regulations.
The 60 Day Gold account from Halifax is also changing. If savers let their balance fall under £5,000, Halifax will rescind instant access to their funds. As in the former example, approximately two months’ worth of the saver’s 0.1 per cent interest rate is forfeited in the event the account is closed or if cash is withdrawn without written notice.
Savers are left scratching their heads on the rationale behind the changes. Again after the maths are done savers who fall below £5,000 lose only 83p in interest.