Halifax

...a current account with the Halifax since the tender age of 14. No I wasn’t some kind of precocious brat with an unhealthy interest in the F.T. The people who employed me to do a paperround preferred to put my wages into a bank account which happened to be the Halifax. So 13 years later I’m still with the Halifax. Avoiding the hassle of changing my account is one big reason why I’m still with them. Also they’ve given me no reason to be forced to change ...
...find out plenty about the Halifax current account and general services from their website (www.halifax.co.uk).

APPLYING FOR AN ACCOUNT

You can apply for an account online via the halifax website. There is the old fashioned way of going into a branch and applying in person. I must admit I prefer to do these kind of things face to face as you can see that they’ve been done. I’m not sure what identification requirements ... more

I’ve had a current account with the Halifax since the tender age of 14. No I wasn’t some kind of precocious brat with an unhealthy interest in the F.T. The people who employed me to do a paperround preferred to put my wages into a bank account which happened to be the Halifax. So 13 years later I’m still with the Halifax. Avoiding the hassle of changing my account is one big reason why I’m still with them. Also they’ve given me no reason to be forced to change it.

So what does the Halifax current account offer? You can find out plenty about the Halifax current account and general services from their website (www.halifax.co.uk).

APPLYING FOR AN ACCOUNT

You can apply for an account online via the halifax website. There is the old fashioned way of going into a branch and applying in person. I must admit I prefer to do these kind of things face to face as you can see that they’ve been done. I’m not sure what identification requirements there are for applying online, as obviously I didn’t apply online for my account. However, if you apply via a branch you need proof of name such as passport and proof of address such as a recent utility bill.

On their website there is a call back facility where you can request someone call you back at a convenient time so that you can either set up an account or discuss setting up an account. There is on their website a number you can call to set up an account. Also they have a branch locator so you can find out where your nearest halifax is.

WITHDRAWING MONEY

Once you’ve opened an account you can get a switch debit card which can also be used at halifax ATM machines to withdraw money. You can withdraw up to £1,200 a day from your account, although if you are using the ATM machines individual branches may set this as lower in accordance to the money available in their machines. You need funds of £100 or more in your account to be able to start using your switch card.

Also, Halifax is a member of the Link system which means you can withdraw money from any non halifax bank or building society that is also a member, it usually says Link somewhere on the ATM machine if they’re a member. However, there may be a small charge to do this and it’s not always clear if this is the case. This is one of the main gripes I’ve had with the Halifax. A couple of years ago, charges to use non Halifax ATMs were either introduced or re introduced with no warning on the ATMs or given out by the Halifax. I only worked out there was a charge by looking at my bank statements and thinking ‘hold on how come I’ve taken £10.50 out”. I must have paid nearly £10 to get hold of my own money. It’s not just the fault of the Halifax, but I reckon if there’s going to be a charge to do something, it should be made clear.

CHEQUE BOOKS, STANDING ORDERS, DIRECT DEBITS

You can also receive a cheque book with a £100 cheque guarantee card. You can set up standing orders and direct debits with the Halifax. Personally I’ve not had a problem with my council tax standing order. However, the standing orders I tried to set up that was supposed to transfer some money to my ISA every payday, was a complete disaster. I tried setting up with them twice and twice there was a distinct lack of money transferal. So I’m afraid I gave up. I work near a high street with a Halifax and Nationwide in walking distance of each other, so it’s easier to do it myself.

INTEREST

Obviously as it’s a current account the interest paid on your money is quite pithy, especially if you don’t have a lot of money in there.

If you put a £1,000 or more a month in to your current account you get 2.02% AER ( 2% gross) on the full balance. The interest they charge you on an arranged overdraft of over £100 is 8.9 % EAR. There is no authorised overdraft fee.

If you put less than £1,000 a month in the picture is a little bit different.
0.25% AER gross interest on balances up to £500
2.02% AER (2% gross) on balances over £500
18.9% EAR interest charged on arranged overdrafts over £100
£5 per month fee if you use more than £100 of an authorised overdraft.

If you go for three months without making payments of at least £1,000 a month your benefits change to the £1,000 or less a month benefits.

Regardless of income everyone can get an interest and charge free overdraft of up to £100. Which is pretty good as there is nothing worse than thinking you might go £3 overdrawn and have to pay 3 times that in charges.

So it would seem that overdrafts are more costly the less your income is, which doesn’t seem fair. It does seem unfair that the interest rate is income related. However, as it’s a current account the interest rate is low anyway so if I earnt more my monthly interest could go up from the princely sum of about 12p to maybe 24p.

CHARGES

Whilst looking at the Halifax webiste for this review I was shocked to see some of the hefty charges you can incur.

Unpaid transactions: If there’s not enough money in your account for cheques, standing orders, direct debits you are liable to a £30 charge.

Abroad: There is a cirrus and maestro facility on your card that lets you use it in cash machines abroad or to pay for services abroad. However, this doesn’t come free. There is a 2.25% conversion fee and a £1.50 charge on each transaction

Unauthorised overdrafts: Scary stuff. There are charges on unauthorised overdrafts, but there is a bit of leeway. If you are illegally overdrawn for just 1 or 2 days there is no charge. But, if this happens more than once in a calender month or if it is for longer than 1 or 2 days there is a £28 charge with 14 days notice given before it’s deducted from your account.

So overdraft wise it’s costly if you have an unauthorised overdraft. However, the interest free £100 is really good. I’ve got a £50 overdraft, which I haven’t used yet, but it’s good to know that it’s there as a buffer zone if I ever get really broke one month and that using it won’t bring about fees and interest.

SPECIAL SERVICES

There are a range of special services that the Halifax current account offers that are accompanied with charges

Stopped cheques (not lost or stolen) £7.50
Special cheque presentation £12
Bankers draft £10 per draft
Copy of paid cheques £5
Extra statement £5
CHAPS £18
(clearing house automated payment system)

I mainly use the ATM machine where you can withdraw and deposit money, check your balance and get a mini statement to check whats going in and out of your account. It’s convenient to use, which is I think one of the most important things in a current account, to be able to withdraw money quickly and easily.

Whenever something more complicated has occurred, I’ve found the staff to be helpful. Like most places it does tend to be busier at lunchtimes, so if you can thats a time best avoided if you need to see the counter staff. Also most branches aren’t open Saturday afternoons, although obviously the ATM machines are still usable.

24 HOUR BANKING

Yep you don’t have to restrict all your banking needs to when Halifax branches are open. There is an online banking facility available from the Halifax website, along with a little demonstration thing that gives you an idea of what online banking involves.

Also there is a telephone number on their website which you can ring 24 hours a day for your financial requirements. There is also a facility to do banking via your wap mobile phone, but in my opinion that seems expensive and a bit pointless.To be honest my finances are quite simple, so I can’t think of many reasons why I’d need 24 hour banking.

The only thing that really springs to mind is loosing my switch card. I used to be very good at this and until the card’s been cancelled there's a horrible dread that some naughty person may be having a spending spree and good old time with my hard earned cash. This is why a 24 hour banking system is so good, if I loose my card again ( I haven’t for years) I won’t have to wait until I can reach a Halifax branch to cancel it.

OTHER TYPES OF ACCOUNTS

The Halifax current account is for the non student over 18’s who for the most part will have their wages paid into their account. There are a number of accounts that differ slightly from the current account, because they are catering for different people.

STUDENT ACCOUNT

This has most of the benefits of the current account. However, the overdrafts terms for students are a lot more generous. There is an interest free overdraft facility of £750 in the first year, £1,000 in the 2nd year and £1,250 in the third year. I’m not sure why it varies like that, maybe they’re trying to get students to stay with them for 2 years so they can get the £1,250 overdraft. Some of the charges and fees are also less for students i.e insufficient funds for cheques

CARDCASH

This is a simpler form of the current account it has lots of the same benefits. It takes £50 to open and offers a solo debit card. There is no overdraft facility. Up to £300 can be withdrawn from ATM machines daily.

UNDER 18 ACCOUNTS

There are several different accounts for the under 18s depending on their ages.

16-18 Cardcash accounts are used for this age groups
11-15 Express cash accounts Where kids can have 24 hour access to their money and withdraw up to £300 a day
0-16 Save4it This is a passbok pocket money account, that can be set up in a childs name until they reach 7

I’m happy with my current account. In my opinion there is very little difference between current accounts from different banks and building societies (I could be wrong, I’m certainly no expert) The down point with the Halifax is the different rates of interest for different monthly incomes and the more costly overdrafts if you have less than £1,000 a month going into your current account. However, it does offer convenience and ease of use.

 

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