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ISA interest..please tell me this isnt so??!
ranciduk
Posts: 732 Forumite
Ive had an ISA with Halifax since 1999 (not sure what 'kind' it is, but i think its just an ordinary cash isa, no fixed rate)
over recent years ive saved a lot of money in this account and in the last few years my yearly interest has risen and in the last couple of years was around £900+, then £1000+ , then £1200+ until last year when it was down to £990+
this surprised me at the time but yhen i was told its due to the recession and bad interest rates etc etc (sorry, i no NOTHING about these financial matters! its all nonsence to me) so i was ok, fair enough. p.s. i had approx £41,500 in the account when i received the £990+ interest amount
anyway, today i rang Halifax to transfer £5100 into my ISA making it upto about £47,000
THEN, i asked the chap on the phone if he could please confirm how much interest ive been paid on this account this year
he told me £93+
thats not a typo
£93
i nearly had a heart attack
is said this MUST be a mistake - he insisted it isnt
anyway, im going to visit a branch to discuss this further but can one of you experts out there tell me this MUST be a mistake?
is this actually possibly right???
from £990+ interest one year - to £93+ the next year???
a £900 drop?
on an ISA with over £40,000 in it ? a years interest of £93!??!?!?!?
help!!
thanks
over recent years ive saved a lot of money in this account and in the last few years my yearly interest has risen and in the last couple of years was around £900+, then £1000+ , then £1200+ until last year when it was down to £990+
this surprised me at the time but yhen i was told its due to the recession and bad interest rates etc etc (sorry, i no NOTHING about these financial matters! its all nonsence to me) so i was ok, fair enough. p.s. i had approx £41,500 in the account when i received the £990+ interest amount
anyway, today i rang Halifax to transfer £5100 into my ISA making it upto about £47,000
THEN, i asked the chap on the phone if he could please confirm how much interest ive been paid on this account this year
he told me £93+
thats not a typo
£93
i nearly had a heart attack
is said this MUST be a mistake - he insisted it isnt
anyway, im going to visit a branch to discuss this further but can one of you experts out there tell me this MUST be a mistake?
is this actually possibly right???
from £990+ interest one year - to £93+ the next year???
a £900 drop?
on an ISA with over £40,000 in it ? a years interest of £93!??!?!?!?
help!!
thanks
0
Comments
-
Could well be right.
Banks often reduce the rate on old ISAs down to virtually nothing.
Looks like you got approx 0.25%. Maybe your ISA tracks at base rate less 0.25%
One of mine at Barclays currently pays 0.1%, so that was the first one I emptied!British Ex-pat in British Columbia!0 -
Yes, that's easily possible.
You opened a variable rate account, and the rate has dropped to a very low rate. This is very typical of old accounts, and is a lesson for the future: keep an eye on interest rates - they do change!
You can do one of the following:
Change to a fixed rate ISA with Halifax (see here) or the ISA Direct Reward (see here). Changing to either of these accounts will take about one minute by phone, 08457 26 36 46 or get them to call you through this link and you will earn the higher rate straight away.
Or, you can switch it to an ISA at a different bank. To do this, open an account elsewhere and fill in an ISA transfer form. There's a list of the best ISAs here. This switch should be completed within 30 days.0 -
cheeky robbing b*stards!!
its a bloody insult
£93
peanuts!
been with Halifax since i was a school kid and they do this to me?
speechless0 -
Yes, that's easily possible.
You opened a variable rate account, and the rate has dropped to a very low rate. This is very typical of old accounts, and is a lesson for the future: keep an eye on interest rates - they do change!
You can do one of the following:
Change to a fixed rate ISA with Halifax or the ISA Direct Reward Changing to either of these accounts will take about one minute by phone, 08457 26 36 46 or and you will earn the higher rate straight away.
Or, you can switch it to an ISA at a different bank. To do this, open an account elsewhere and fill in an ISA transfer form. This switch should be completed within 30 days.
thanks for all that - much appreciated0 -
Looking at it another way, I don't want the bank that I effectively own part of giving my money away.
(Which is probably what the government told them - hence the low rates?)British Ex-pat in British Columbia!0 -
i bet you dont!
but id get better interest sticking it in a hole in my backyard0 -
There are two things to consider here.cheeky robbing b*stards!!
its a bloody insult
£93
peanuts!
been with Halifax since i was a school kid and they do this to me?
speechless
1) Keep a closer eye on your bank account and interest rates and know what your getting and what alternatives there are.
2) When they say on the news that the Bank of England base rate has gone down from 5.5% to 0.5% it almost certainly means you will get less interest on your savings. Every £5.50 of interest in the past has just become 50p. Every £550 became £50. Every £1,100 becomes £100.0 -
As you take no notice of it (until it bites you!) ..... then you shouldn't have a variable rate ISA.
Move it to a fixed rate ..... that way you can cheerfully turn your back on it without worrying it's up to no good! Halifax have a 2 year fix at 3.5% at the moment .... would suggest you go for that and they will send you maturity instructions at the end of the period to remind you. At that point consider moving to a longer period (Halifax or elsewhere) if rates have improved.
But ..... put your £5.1k into your existing variable rate first (not crystal from your earlier if that's done?). As you can't add further funds to the fixed rate after the first deposit is made. So - once you go fixed rate - you tend to have to open a further ISA each year to put in your new money. But that's better than getting a nasty surprise when you get the interest?If you want to test the depth of the water .........don't use both feet !0 -
Look at it another way
... a very harsh lesson learned. Don't make the same mistake again
I'm not digging you as the same happened to me the tax year just gone. Ok not on a big a scale as you, as mine was 12k, but i went from getting about £300 interest to about £30.
I should've kept my eyes on the prize, i didn't, it was my mistake & i'll not be repeating it.
I advise the same for you, although i don't think you'll need any advising after this.0 -
But ..... put your £5.1k into your existing variable rate first (not crystal from your earlier if that's done?). As you can't add further funds to the fixed rate after the first deposit is made. So - once you go fixed rate - you tend to have to open a further ISA each year to put in your new money. But that's better than getting a nasty surprise when you get the interest?
yes i did put in the £5.1k
having now done this - how do i stand with regards to moving it to another bank? say Santander?
or do i now have to wait until next April before im allowed to move it to another bank?0
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