Halifax explains letters going out to customers about account change | Personal Finance | Finance

Halifax has issued an update over an important letter going out to customers with a particular savings account.

A customer contacted the bank as they had received an update on the banking app about a letter they had been sent.

They were confused as the letter was about their bonus saver “ending soon” but the letter also mentioned about an instant saver account.

Halifax responded to clarify the process: “After 12 months the account changes to an instant saver.” The Bonus Saver offers 3.05 percent interest over a 12-month term.

You get this rate as long as you make no more than three withdrawals over the 12-month period. If you make four or more withdrawals, the rate drops to 0.95%.

Interest is paid monthly, on the same date you opened the account. You can open the account with an initial deposit as little as £1 and up to £9million.

However, once the 12-month term is finished, the account becomes an instant saver. This account pays just 1.35%, meaning your interest rate will drop by 1.7%.

Bonus Saver customers should also note that the interest rate is variable so Halifax can change it at any time. The Halifax website explains: “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.”

The account can be managed online, through the app, in branch or over the phone. If you open the account and decide later on you don’t want it, you can cancel the account free of charge within 30 days of opening.

Halifax customers with an easy access savings account can renew it into a bonus saver without needing to open a new account.

In other savings news, customers with Nationwide Building Society may want to note they have just days left to take advantage of a £200 switch offer.

Existing members can get the bonus cash when switching from non-Nationwide account to a new or existing FlexPlus, FlexDirect or FlexAccount account.

The deadline to cash in on the offer is Thursday, July 10. You can find out if you qualify using the checker tool on the Nationwide website.