Halifax Reward account customers will be displeased at yet another reduction in the monthly bonus.
Halifax will be cutting the monthly rewards available on two of its current accounts from October. The decision will affect holders of the Halifax Reward and Halifax Ultimate Reward current accounts, which currently pay a £3 a month bonus.
The bonus, which is given each month that customers pay in at least £750, stay in credit, and pay two or more direct debits, will drop to from £3 to £2 a month on 1 October 2018. This could mean an up to £12-a-year reduction in bonuses, from a maximum of £36 down to £24.
The bonus cut follows a similar one carried out on the same accounts last February, from £5 a month to £3. Halifax also recently increased the Ultimate Reward account monthly fee from £15 to £17 – as of October if a customer earns the bonus they will now be paying £15 a month overall, compared to £12 previously.
A Halifax spokesperson says: “We are writing to our Halifax Reward and Ultimate Reward Current Account customers to inform them of a change to the monthly reward they will receive from their account from October 2018. This change ensures we can continue to offer all the benefits of these accounts while remaining competitive in the market.
“The Ultimate Reward Current Account offers an extensive range of features and benefits including several insurance products. To purchase these individually would cost more than the monthly account fee.”
If you’re an existing customer of a Halifax Reward current account and decide you want to switch, there are other good options available for you.
While existing current account holders will take a hit, customers who switch to one of Halifax’s Reward accounts can still benefit from a £75 switch bonus.
However, our Moneywise best buy is the high-interest current account Nationwide FlexDirect, which offers 5% interest on balances up to £2,500 as an introductory 12-month offer. After this, it drops to 1%. Agreed overdrafts are free for the first year provided you pay in a minimum of £1,000 a month.
The best buy switching bonus current account is the First Direct 1st Account, which offers a number of valuable gifts such as online courses, Expedia vouchers or electronics if you switch to one of their current accounts. You will also receive a further £100 if you are unhappy and leave within the first six months. You’ll need to transfer via the Current Account Switching Service (CASS), transfer your direct debits and deposit at least £1,000 in the first three months to qualify.
Check out our guide to the best current accounts on the market for more information.