HFX Fixed rate ISAs down by 1%!!!

realaledrinker

Opened a 1yr Fixed rate ISA yesterday (Fri 5th) for my Icesave dosh & got 5.5%for £30K+.

The wife rang today & only got 4.5%. Is appears the rates were reduced overnight!! :mad:

Baldur

See https://www.emoneyfacts.co.uk/news/savings-news.aspx?newsarticleid=179239

KingL

The lowered rates were up on their website on Friday. Count yourself lucky you got in!

highet

opened fixed rate isa online on monday with hbos but not appearing on line yet and still waiting for paperwork to sign and return before acc will be properly open - anyone know if the rate is fixed at application date, date when signed paperwork received by hbos or when acc is actually funded?

KingL

application date for a transfer in, funding date for a new subscription.

although see posts 50 to 80 here for the full painful story on transfers in
http://forums.moneysavingexpert.com/showthread.html?t=1212275&page=2

.

Wyndham

Yup - I'm rather annoyed. Applied on Monday (new account, not transferring an existing ISA on account of me not having one). OH also opened a regualar saver, which we got confirmed immediately and have funded. Still waiting for paperwork for the ISA, and can't fund it until I know the account number.....

I'm ready to argue when I do get it all confirmed if they say it's the lower rate. I'll let you know how I get on!

Kauptd

I'm quite worried by this thread. I have a Fixed Rate ISA whose interest rate was "guaranteed" by the building society for a set period. That period still has another 10 months to go or so.

It was my understanding that an ISA offered as a FIXED RATE ISA was just that.

Surely it is a breach of whatever rules and regulations apply (the FSA???) for a fixed rate account to be offered and accepted only for that rate to be cut a few months later?

If the rate is changed then it isn't fixed and if it isn't fixed it should surely never have been described as such in the first place.

Can anyone here with wider experience than I have of financial matters perhaps advise?

Thanks.

jem16

Kauptd wrote: »

Surely it is a breach of whatever rules and regulations apply (the FSA???) for a fixed rate account to be offered and accepted only for that rate to be cut a few months later?

What's being discussed here is a totally different situation. They are referring to fixed rates being offered at a lower rate than they were previously offered.

Those that took a fixed rate 2 months ago will still have that rate. Those taking a fixed rate now have a lower rate.

Stompa

Kauptd wrote: »

It was my understanding that an ISA offered as a FIXED RATE ISA was just that.

Don't worry, it is.

Having said that, the comment here:

http://www.halifax.co.uk/savings/personalrates.asp#Fixed_rate_Halifax_ISA_Saver

that "The interest rates above are correct as at the date shown. However, for existing customers with an account approaching maturity please note that the rates may change between now and your maturity date." strikes me as decidedly odd.....

Baldur

Stompa wrote: »

..."The interest rates above are correct as at the date shown. However, for existing customers with an account approaching maturity please note that the rates may change between now and your maturity date." strikes me as decidedly odd.....

I read that as a warning to re-check rates before plunging into another fixed-rate on maturity, and assuming that the rate currently shown would apply to the new account.

Stompa

Baldur wrote: »

I read that as a warning to re-check rates before plunging into another fixed-rate on maturity, and assuming that the rate currently shown would apply to the new account.

I see what you mean, though can't help feeling that they could have worded it better.