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  • FIRST POST
    • Helene87
    • By Helene87 9th Nov 15, 2:59 PM
    • 10Posts
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    Helene87
    Closing a Halifax Fixed Isa Early
    • #1
    • 9th Nov 15, 2:59 PM
    Closing a Halifax Fixed Isa Early 9th Nov 15 at 2:59 PM
    Hello,

    I'm hoping that someone will be able to offer me some advice on this...

    I'm (hopefully) buying a house within the next few month. I wasn't really planning on buying a property this year, but an opportunity came up which I did not want to miss out on. However, in order to make the deposit, I'm going to have to shut my 1 year Fixed Halifax ISA which I opened just over 1 month ago.

    Having looked at the Halifax T & C, I know that closing the account early means that I will "lose an amount equal to 90 days tax-free interest". By my reckoning, that means that I will get out less than I put in...but here is the bit that confuses me...(and I cannot get a straight answer from Halifax, no matter how hard I try).

    Will Halifax just take 90 days interest off of my initial deposit, and then return that figure to me?

    Or will Halifax take 90 days interest - the number of days that my account has been open for when I finally close it. For example: If I closed it today, would they take (90 days interest - 40 days interest) = 50 days interest. In this case, it would obviously make sense to try to keep my account open for as long as possible.

    I hope this question makes sense. Two Halifax workers have given me two different answers to this, so i was wondering if anyone knew from experience.
Page 1
    • le loup
    • By le loup 9th Nov 15, 3:47 PM
    • 3,660 Posts
    • 3,590 Thanks
    le loup
    • #2
    • 9th Nov 15, 3:47 PM
    • #2
    • 9th Nov 15, 3:47 PM
    Sounds like, and for most accounts it would be, you lose 90 days interest. No pro-rating for time open.
    • Helene87
    • By Helene87 9th Nov 15, 5:11 PM
    • 10 Posts
    • 0 Thanks
    Helene87
    • #3
    • 9th Nov 15, 5:11 PM
    • #3
    • 9th Nov 15, 5:11 PM
    OK, thanks for the advice. Good to know

    The first person I spoke to at Halifax told me that I would get 40 days interest for example, then they would take the 90 days off of that balance.

    I wasn't so sure if this sounded right, and asked another person on their live chat system, and they just kept copying and pasting the term that should read the T & C's for clarity. But since I was asking them for clarification on how the T & C worked, it didnt help me much.
    • Archi Bald
    • By Archi Bald 9th Nov 15, 5:41 PM
    • 9,355 Posts
    • 7,418 Thanks
    Archi Bald
    • #4
    • 9th Nov 15, 5:41 PM
    • #4
    • 9th Nov 15, 5:41 PM

    The first person I spoke to at Halifax told me that I would get 40 days interest for example, then they would take the 90 days off of that balance.
    Originally posted by Helene87
    That's how I would expect it to work.
    • VT82
    • By VT82 10th Nov 15, 12:22 PM
    • 922 Posts
    • 745 Thanks
    VT82
    • #5
    • 10th Nov 15, 12:22 PM
    • #5
    • 10th Nov 15, 12:22 PM
    Hello,
    Will Halifax just take 90 days interest off of my initial deposit, and then return that figure to me?
    Originally posted by Helene87


    Nope, otherwise as well as penalising you 90 days' interest, they would also be penalising you your accrued interest, which would be outside of their T's and C's.


    Hello,
    Or will Halifax take 90 days interest - the number of days that my account has been open for when I finally close it. For example: If I closed it today, would they take (90 days interest - 40 days interest) = 50 days interest. In this case, it would obviously make sense to try to keep my account open for as long as possible.
    Originally posted by Helene87

    Yes this is correct, as per what the first person you spoke to informed you, and Archi of course.
    • Helene87
    • By Helene87 11th Nov 15, 7:41 AM
    • 10 Posts
    • 0 Thanks
    Helene87
    • #6
    • 11th Nov 15, 7:41 AM
    • #6
    • 11th Nov 15, 7:41 AM
    Ok, Does it make a difference that interest is credited to my account annually?
    • eskbanker
    • By eskbanker 11th Nov 15, 8:59 AM
    • 5,892 Posts
    • 5,854 Thanks
    eskbanker
    • #7
    • 11th Nov 15, 8:59 AM
    • #7
    • 11th Nov 15, 8:59 AM
    Ok, Does it make a difference that interest is credited to my account annually?
    Originally posted by Helene87
    No, they'll calculate the interest you've earned right up to the closure date regardless of whether it's actually been credited to the balance or not (and then deduct the 90 days worth from that figure).
    • Froggitt
    • By Froggitt 11th Nov 15, 9:45 AM
    • 5,794 Posts
    • 3,065 Thanks
    Froggitt
    • #8
    • 11th Nov 15, 9:45 AM
    • #8
    • 11th Nov 15, 9:45 AM
    How much is in the ISA and what is the interest rate?
    illegitimi non carborundum
    • Helene87
    • By Helene87 14th Nov 15, 10:11 AM
    • 10 Posts
    • 0 Thanks
    Helene87
    • #9
    • 14th Nov 15, 10:11 AM
    • #9
    • 14th Nov 15, 10:11 AM
    At present there is around £12,000 in there, and the interest rate is 1.61%
    • colsten
    • By colsten 14th Nov 15, 1:21 PM
    • 8,815 Posts
    • 7,510 Thanks
    colsten
    Assuming the £12,000 have all been deposited on the same day, you get roughly 53p interest per day. The 90-day penalty would therefore be £47.64. However, you will also be paid interest for every day you had the money in the account, so the total 'damage' will be less than that.
    • Helene87
    • By Helene87 16th Nov 15, 11:35 AM
    • 10 Posts
    • 0 Thanks
    Helene87
    Ok, thanks, this clears things up a bit for me.
    • Westie983
    • By Westie983 22nd Nov 15, 10:58 PM
    • 3,856 Posts
    • 14,033 Thanks
    Westie983
    Just to clarify the above information is correct, you get given the interest paid daily upnto the day you close it, you are then charge the 90 days lost of interest off this figure, so you wont have earned enough interest in the account to cover the charge, unless its been 90 days, so you will lose some of the capital invested.

    You can close this over the counter, at the branch and the interest is applied and charge deducted.
    Save 12k in 2018 #10 Total (£25,000)+£0.00/£12,000 = 0.0%
    Sealed Pot Challenge ~ 11 #97 Total (£410) + £0.00/£800 = 51.25% ( x 11)
    Xmas 2017 £1 a Day #6 Total £400/£365 = 109.58%
    Virtual Sealed Pot #1 Total £1,800/£1,800 = 100.00%
    £2 Savers Club 2017 #3 Total (£1,450)+-450/£2,000 = 50.00%

    Total £28,560/£16,965 = 168.34%

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