Halifax Reward Current Account is claimed to replace the group's existing interest and fee structure
UK-based Halifax, a mortgage lender and a part of the HBOS Group, has launched a new current account, the Halifax Reward Current Account, which is claimed to replace the group’s existing interest and fee structure with a
new approach.
For the new account, credit interest will be replaced by set net cash payments after tax of GBP5 per month irrespective of balance when accounts are funded with GBP1,000 a month. Traditional arranged and unarranged overdraft fees and interest rates will be replaced with a daily fee. The Halifax Reward Current Account will be launched on February 9, 2009.
The company said that the account does not require a cross product holding and there is no annual fee. The Halifax Reward Current Account is open to both new and existing customers. The Halifax High Interest Current Account and Halifax Current Account will not be available to new customers from this date.
It is intended that all Halifax accounts will move to a daily overdraft charging structure like this in 2009. In the interim existing customers will continue to use their accounts as normal.
Customers in the Moneyback Current Account, an account which hasn’t been available to new customers since January 2008 will be transferred across to this new account — maintaining an account that rewards customers for
their business.