Halifax offers up to 12% on Regular Saver

by Gill Montia

Story link: Halifax offers up to 12% on Regular Saver

Halifax is today launching a savings account that pays interest at up to 12%.

The credit crisis has prompted banks and building societies to increase savings rates, as a shortage of cash on the money markets has forced them to become more reliant on consumer deposits.

However, Halifax is well ahead of the field with its latest offering, which is available until 20th July.

The Regular Saver offers a maximum monthly deposit of £500, which is high when compared to competitors’ regular savings accounts.

Funds have to be left in place for one year and will initially attract interest at 10%, but for those who reach a £5,000 savings target, the rate rises to 12%.

Savers investing the £500 maximum each month and accruing £6,000 after 12 months, can earn interest of £325.

However, if they continue to save beyond the £5,000 mark, a 2% bonus applies bringing the total amount of interest to £390.

At the end of the 12-month period account holders have the option to move their money into one of several Halifax accounts, or search for a better deal.

Those who need to make a withdrawal during the 12 month period will lose out because their interest rate reverts to that offered by the Halifax Web Saver account, which pays between 4.36% and 4.45%.

Consumers can only hold one Regular Savings account with the Halifax, so those already engaged with a Halifax regular saver need not apply.