Halifax has issued a £100 savings warning (Image: Google)
has urged customers to be wary of a savings rule that could mean the amount they can save is effectively reduced.
The important limit came to light after a customer asked a question about one of the bank’s savings account.
They shared a screengrab of the information page for the Kids’ Monthly Saver, asking: “Does this mean you have to add at least £10 a month and a max of £100 a month please? If so, what happens if you miss a month?”
The regular savings account pays a fixed 5.5% interest, with the information they shared featuring information about a ‘minimum first deposit’ detailed as ‘£10 to £100 a month’.
Clarifying the rules, Halifax said in response: “The minimum you can save each month is £10 up to a maximum of £100 by one standing order.
“You can also make a bank transfer to top up the savings as long as the total amount of your deposits doesn’t exceed the monthly £100 limit.”
The bank issued a further warning, stating: “You don’t have to pay in every month, but because you can’t save more than £100 a month, you’ll limit the amount you can save over a year if you miss a month or more.”
The account has a 12-month term, so if you pay in the maximum £100 each month, when the account matures, you will have a balance of £1233.00.
You can add to the amount you deposit at any time and can top up your savings by bank transfer as long as you don’t go over the £100 monthly limit.
Interest is calculated each day. The Halifax explains: “As your balance is lower at the start of the term and grows after each monthly deposit, your daily interest calculation also slowly increases. At the end of the term, your interest is added into your savings account.”
Don’t miss…
In another recent case of a savings provider explaining its monthly limits, Nationwide Building Society for its Flex Regular Saver.
A customer asked the group over social media: “Have opened one of your savings accounts with a maximum deposit of £200 a month. Is that every calendar month so if I deposit £200 on the 29th of January, then on the 1st of Feb I can deposit another £200?”
With the Flex Regular Saver, you can deposit up to £200 a month over a 12-month term. The account currently pays 6.5%.
The building society said in response: “Yes, that is correct. The maximum deposit limit on the Flex Regular Saver is £200 per calendar month.”
The account can be opened online using Internet Bank or the banking app. You need to have a current account with Nationwide to open the account.