Is Halifax the best place for my ssia?

A

AlastairSC

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Hi all,

We've got the proceeds of an SSIA to squirrel away somewhere for 18-24 months. Plan is for one of us to jobshare and study, withdrawing enough each month to supplement the reduced salary.

We can't put all of it in one go into Halifax at 7% because they have a limit of 750 pm:mad: . Would Northern Rock have the highest rate for the bulk amount and should we then transfer the max of 750 into Halifax. Is there a better plan?

Thanks
 
Rabodirect would have the best rate to put a lump sum into (5% up to €10k, 3.75% on amounts over €10k). AIB regular save has a rate of 7.1% but max €300pm. You could put €300 into AIB regular saver and €750 into Halifax!
 
A quick rant:

I went to talk to the Savings and Investments Manager in my local Halifax about a month ago. He was a young guy who looked like he had just put on a pin stripe suit and cufflinks for the first time in his life. He could tell me nothing of any value. It seemed like all he could do was quote verbatim what he had learnt at the last in house sales training course. Whenever I asked any pertinent or reasonable questions he glazed over and just repeated the same stuff which was along the lines of "if you had invested over the last 5 years you would have got a return of XX%" and "of course savings can fall as well as rise, but really you can't loose on this". He had no relevant details or documentation for me to find out the answers for myself, he had single copies of brochures on a couple of products which he flashed in front of me and told me he couldn't give me. He promised to send me copies which needless to say never arrived.

Grrr how do these people get away with this, they are obviously presuming that their target market is pretty stupid or at least uninformed about such matters. It will certainly be a while before I bother going back there.

Maybe I should have put this post in letting off steam, my apologies if it is in the wrong location.

J2K
 
Jake2000 said:
A quick rant:

I went to talk to the Savings and Investments Manager in my local Halifax about a month ago.

J2K
Click to expand...

do Halifax do investments (I mean mutual funds not savings accounts) or have a branch you can call into ??
 
Thanks . This shows how observant I've been lately . I pass the one in Stephens Green every day :)
 
I saw a Halifax "call in" branch at the Omni shopping centre, so I guess they other branches elsewhere.
 
Great - thanks to all so far (even the rant was helpful!)

I reckon we'll open two separate Halifax accounts @7% (2x750 pm) and two AIB regular savers @7.1% (2x300 pm), and park the capital somewhere while it drains into these.

Just saw their interest-bearing current accounts @10% if you lodge €1500 pm in. Hmmm, reckon we'll have two of these as well....

Now, how to work the transfers.....
 
Just remember that 7% on 12 monthly contributions of €750 totalling €9K is not €9K @ 7% = €630 (gross) but is actually €337.72 (gross - €504 after DIRT) due to the fact that the money is drip fed into the account. See this calculator.
 
aishling said:
Rabodirect would have the best rate to put a lump sum into (5% up to €10k, 3.75% on amounts over €10k). AIB regular save has a rate of 7.1% but max €300pm. You could put €300 into AIB regular saver and €750 into Halifax!
Click to expand...


Aishling has right idea....but I might just add you might try the Halifax current account - it offers 10% on first 2K. All you have to do is transfer €1500 into it a month. Simply do a "father Ted" on it and leave money resting in it for a day and transfer it out. Alternatively have your salary paid into account.
It is worth bearing in mind that the AIB saver account requires an AIB current account which may attract fees. My choice of lump sum accounts would be:

1. Halifax current a/c (10.0% - 2K)
2. Rabodirect ( 5.0% - 10K)
3. Northern Rock ( 4.3% - bal)

An alternative strategy is to invest in more than 1 regular savers account. My choice would include:
1. AIB regular saver* (7.1% - €300 per month)
2. Halifax (7.0% on €750 pm)
3. Anglo (7.0% on €750 pm)

At this point I start to run out of money to live on and save at the same time but some combination of the 2 of types of savers accounts should sort out your savings.

*but only if you are eligible for free banking with AIB.
 
skrooge said:
An alternative strategy is to invest in more than 1 regular savers account. My choice would include:
1. AIB regular saver* (7.1% - €300 per month)
2. Halifax (7.0% on €750 pm)
3. Anglo (7.0% on €750 pm)
Click to expand...

Anglo allows lodgements of €1K p.m.

Check out the Financial Best Buys lists for more on these accounts. Pay attention to the terms & conditions.
 
As the OP needs to draw down on these funds to supplement their income they should, as Clubman said, pay special attention to the terms and conditions regarding withdrawals. Equally they should pay attention to the duration of these offers as some finish at the end of the year which isn't that long away. (e.g. BOI's rate is 6.5%, AIB's is 7.1% but BOI's lasts longer)
 
AlastairSC said:
I reckon we'll open two separate Halifax accounts @7% (2x750 pm) and...
Click to expand...
Just to mention, in case it simplifies matters — Halifax will let you and your partner open three accounts between you — one each and one joint one.

I must look into that current a/c myself... I've been known to open 'resting' accounts for less! ;)
 
To maximise return put 10K in Rabo and the remainder in Northern Rock thus getting 5.whatever% and 4.3% respectively.

Halifax have a ceiling on theirs as far as I know and are not suitable for lump sums.

As you are only talking about 18 month I would probably go with Northern Rock as their online account seems less restricted with a min of 1000k balance been only stipulation to keeping the 4.3% rate.
 
I dropped into Halifax College Green today to open a regular savings account. They couldn't see me and could only offer me the option to make an appointment. To open a savings a/c? :rolleyes:

All friendly & smiley (and offers of coffee) but no service. All show and no substance by the looks of things. A disappointing first encounter.

I made an appointment but am considering looking at alternatives.
 
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