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Halifax to cut monthly current account reward

Written by: Paloma Kubiak
Halifax will cut the cash perk offered to new and existing current account customers this winter.

Customers with the Halifax Reward Current Account currently receive a £3 a month reward payment as long as they have two direct debits, remain in credit and deposit £750.

But from October 2018, the £3 monthly reward payment will drop to £2.

Ultimate Reward Current Account customers also receive a £3 discount on the account fee for meeting the same criteria, taking the cost from £17 to £14.

But these customers will see the discount reduce from £3 to £2, with effect from October.

This is the second change to the monthly reward payment as Halifax last cut the rate from £5 to £3 in February 2017.

However, when considering the £2 per month reward, customers would need to have an average balance of £1,600 in an account paying 1.50% AER.

A Halifax spokesperson said: “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. The Reward current account remains fee free.”

Anyone switching to Halifax will still receive a £75 incentive (dropped from £100 in March 2017) and reward current account customers can also earn up to 15% cashback on purchases from a range of retailers each month through Cashback Extras.

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