**Halifax Responds to Customer Queries Over 12-Month Savings Account Rule**
Halifax Bank has recently sought to clarify the changing terms associated with one of its popular savings products, following questions from concerned customers about account changes after a year of saving. The explanations come in response to letters sent to some account holders, prompting a wave of further questions for the high street bank.
A Halifax customer reached out to the bank for more information after receiving a message indicating their ‘bonus saver’ was wrapping up soon, with a reference to the account moving to an ‘instant saver’ product. In response, Halifax clarified: “After 12 months, the account changes to an instant saver.” This move has sparked a broader discussion about the savings terms and what customers should expect when using this product.
The Bonus Saver account appeals to many as it offers a relatively competitive 3.05% interest rate for a fixed 12-month period. However, there’s a strict caveat: savers are allowed a maximum of three withdrawals within that year-long span. Making a fourth withdrawal or more triggers a sharp reduction in the interest rate, dropping it all the way down to 0.95%.
Interest on the Bonus Saver is distributed every month, with the payout aligning to the date the account was originally opened. The account is accessible to the majority of savers, requiring a minimum deposit of just £1, while permitting up to £9 million to be held—a rare feature in the consumer savings landscape. However, the generous rate is not permanent. After the 12-month bonus period concludes, the account automatically reverts to becoming an instant saver, which only offers 1.35% interest; that’s a notable reduction of 1.7 percentage points from the earlier rate.
It’s important for account holders to understand that the rates applied to the Bonus Saver are variable, meaning the bank has the authority to adjust them at any time. Halifax does reassure customers, stating 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.” Customers are encouraged to regularly review their terms to ensure they’re still receiving the best deal for their needs.
Convenience remains a strong feature, with the Bonus Saver fully manageable online, through the mobile app, by visiting a branch, or over the telephone. For those who have a change of heart, Halifax provides a 30-day cancellation window after opening, allowing savers to back out at no cost or penalty.
Halifax customers looking to maximise their interest can also convert an existing easy access savings account into a bonus saver, with no need to open a brand new account—a flexible approach welcomed by many who seek to boost the returns on their spare cash.
In related financial news, Nationwide Building Society has issued a reminder to its customer base that a lucrative £200 switching offer is set to close shortly. This bonus is available to existing members who transfer their main current account from another provider to certain Nationwide accounts, including FlexPlus, FlexDirect, or FlexAccount. The deadline for taking advantage of this offer is Thursday, July 10, giving customers only a matter of days to act.
With interest rates and product terms across savings accounts often changing, experts advise customers to stay vigilant and review the small print on their accounts. Banks like Halifax maintain that they will inform customers of any future changes, but proactive monitoring helps savers avoid disappointment and ensures their money is working as hard as possible.
As the cost of living continues to influence financial planning for households, such updates and clarifications are likely to be welcomed by those eager to make informed decisions about where to house their savings.
Further information can be found via Halifax’s official channels, with additional financial advice available from independent consumer groups and financial regulators.