Halifax launches a Christmas Savings Account

Halifax will launch in May a Christmas Savings Account aimed at low income households.

The product will be trialed through a mailing to 10,000 of the Group's social banking customers. This is the first time that the Group will have offered such a product.

The Halifax Christmas savings account will be very easy to operate. It will take just £5 to open it; a minimum of another £5 a month is then required. The maximum that can be saved every month is £100. So, customers could save a total of £600 a year.

At 5.2%, the Halifax Christmas savings account, will have a very competitive rate of interest. Customers will also have the peace of mind that the Halifax stands behind this product.

Under this account, customers will begin saving in May and conclude in October. They will then be able to take their savings in either cash or High Street vouchers. The vouchers will only be with well known High Street brands.

A leading social banking programme

The main elements of the HBOS, including Halifax, social banking programme are:

HBOS has 3.6 million social banking accounts, considerably more than any of its competitors.

The Halifax is the only banking institution to have piloted the Savings Gateway on behalf of the Treasury. Over 23,000 accounts have been opened.

31% of the Group's social banking customers in deprived areas also have a savings account with the bank.

Shane O'Riordain, General Manager, Group Communications, said: "A minority of people in the UK are outside the financial system. This can create real difficulties for them, especially at times like Christmas.

Our Christmas savings account is simple and easy to operate. At the same time, it offers a very competitive rate of interest. Customers will have the peace of mind that the Halifax stands behind this product."