Halifax £250 alert telling customers 'you need to act by this date'

Halifax has issued a warning about a key date after a question from a confused customer. The person got in touch over social media to ask: "I was interested in your Regular Saver at 5.5% for 12 months. It states has to be paid by 25th of each month but I get paid on 26th.

"How would that work and what would be the best date to open it? 25th seems a silly date when people get paid at end of the month." The Regular Saver offers a rate of 5.5% fixed for a 12-month term.

You can save between £25 and £250 into the account, and this can be arranged via standing order or bank transfer. Regarding the regular deposits into the account, the rules on the Halifax website : "This needs to reach your account by the 25th of the month."

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Halifax responded to the customer to clarify: "The regular saver allows you to save £25-£250 every month by standing order or a bank transfer. This needs to reach your account by the 25th of the month."

Interest is calculated daily and paid 12 months after opening the account, when it matures. If you deposit £250 each month, at the end of the term your balance will be £3082.50. You can open the account online, through the app, in branch or over the phone.

You can only hold the account in a sole name. You can deposit by standing order or bank transfer, and you can top up with other deposits as long as you do not exceed the £250 a month limit. A person can only have one Regular Saver.

In opening the account, Halifax will also open an Everyday Saver account for you. This is so the bank can transfer your savings into this account, when the Regular Saver matures. After the account matures, your Regular Saver will renew for another 12-month term. If you close the Everyday Saver, your savings will stay in the Regular Saver but it will become an Everyday Saver, which currently pays 1.26%.

Savers have been urged to shop around to make sure they are getting the best rate. Chris Henderson, savings and payments director at Tesco Bank, said: "It's important to take a quick pit stop on your savings journey and check that the interest rate on your savings account – or Cash ISA – is still fit for purpose.

"Checking the market for the best rates is an important first step so that all the money you are saving is working its hardest." With the new tax year just started, he encouraged people to deposit into their ISAs early as the £20,000 deposit allowance renews.

He explained: "Typically, the earlier in the financial year you can save into an ISA, the more opportunity there is for your money to grow tax-free. Remember you don't have to use your full allowance – but it's important to save what you can. If you invested £3,000 in a cash ISA offering a fixed rate of 4% for 12 months, then you'd earn £120 in interest over the year."