Halifax Fixed Rate Rip Off?

hooch_72

I wonder if anyone can help?

I opened a '12 month Fixed Rate Cash ISA' with Halifax on 20th January 2009 - I opened the account over the phone - The rate at the time was advertised as 3.75% fixed for 12 months.

When I spoke to the call centre rep I asked him to confirm that I would definitely be getting the rate I had seen and he said that this would be the case.

They sent me some paperwork to transfer other ISAs in, which I completed for 3 ISAs - I also in the last few days transferred in this years allowance.

I've just logged into my online account for the first time - just to check that the account looks in order - When I view the account it says that my rate for the ISA is '0.15% Gross p.a.' - What's going on? Are the Halifax trying to rip me off here?

Has anyone else experienced this problem? Can anyone else confirm the rate deal that was available at the time I joined - as funnily enough the rate does not appear on any of the letters they have sent me about the account.

rb10

No, they are not trying to rip you off.

A fixed ISA does not allow any transactions to occur on it during the period, so what they do is open it as a variable rate ISA Saver (interest rate 0.15%), then, once all transfers in have been received, upgrade it to a fixed ISA, and backdate the interest.

So as long as the form you signed said Fixed ISA for one year, then you will be fine. Once the final transfer is in, your online banking screen will update to show the true rate.

hooch_72

Nice of Halifax to make this clear in their documentation... Thanks I'll sleep easier tonight :0)

Milarky

The transfer process to Halifax involving more than one account is as rb10 describes. The problem is you are relying a 'verbal' agreement and rates are changing frequently in the meantime. So Halifax are 'chasing to catch up'. Halifax will eventually tie this all up - but they don't make it clear at any stage. Their computers generate a succession of letters - each reporting something different. It isn't a satisfactory situation but please make allowance for the fact they are a giant bank in a state of some disorganisation following the Lloyds merger and be patient.

Stompa

Milarky wrote: »

The transfer process to Halifax involving more than one account is as rb10 describes. The problem is you are relying a 'verbal' agreement and rates are changing frequently in the meantime. So Halifax are 'chasing to catch up'. Halifax will eventually tie this all up - but they don't make it clear at any stage. Their computers generate a succession of letters - each reporting something different.

Indeed, I've just transferred 3 ISA's (one of which was Icesave) into a Halifax FRISA. They guarantee the rate for 60 days after application. As part of the process they initially open a Halifax ISA Saver Direct, then once all the funds have been received this is transferred to the FRISA (with a different Roll number). Bizarrely, they've just sent me a 'Confirmation of Investment Certificate' for the ISA Saver Direct, for £0.00 - goodness knows what that's all about.

The good news however, is that they've added some interest to my account (though it's not entirely obvious what this relates to exactly), and for some equally unknown reason they've fixed my interest rate at 5.75% rather than the 5.5% I'd been expecting.

Mind you, it's taken around 10 weeks from application to get to this stage, and I've yet to receive written confirmation that everything is complete.

yinnie

I had a real nightmare opening my Halifax FRISA from Icesave funds - I experienced most of the problems that others did on this MSE board. I won't go into the details as I'm so tired of the whole affair but if I had any idea of the hoops I'd have to jump through and the terrible mess that is Halifax customer service and operations then I definitely would not have touched them with a barge pole!

But a final warning - once your account is open, make sure you check the rate you are getting is the rate you expected. I fixed my £18,000 at 5.45% for 2 years - when it finally opened 2 months later on Jan 19, it showed up as 2.75% in my online account. I called Halifax immediately and the customer service guy kept insisting that Icesave transfers only had 30 days (instead of the 60 days under Halifax ISA promise) to return the certificate (yes changing their story again!) and therefore I had lost the original rate (I returned the certificate within 35 days of account opening). In the end, the man came back and said they were getting calls from other customers about the same problem and seemed to be admitting that they were wrong but couldn't change the rate on the account as it had already been fixed. So they offered to credit the difference in interest to my ISA account which I agreed to. It's been 3 weeks now and I still haven't received anything in writing to confirm anything, even that the account has been opened! The only reassuring thing is that I can see they have credited my ISA account online with just under £1000 in (nearly lost!) interest. I really hope this is the end of my dealings with Halifax until the 2 years fixed period is up!

brewerdave

I've applied to move 2 existing ISAs to Halifax into their 4 year fixed deal which was 4% - the advisor did tell me that I would only get the rate existing when all the transfers were complete, not necessarily the 4%. In view of the preceding was this wrong? ie should there be a windows of 60 days on this product?
I also agree about the horrendous state of paperwork - today I received a letter dated the 10th asking me to visit the local branch with 2 forms of ID - AFTER I had been told it wasn't needed and also stating that I hadn't returned the application form - which didn't arrive until the 13th!!!!

Stompa

brewerdave wrote: »

I've applied to move 2 existing ISAs to Halifax into their 4 year fixed deal which was 4% - the advisor did tell me that I would only get the rate existing when all the transfers were complete, not necessarily the 4%. In view of the preceding was this wrong? ie should there be a windows of 60 days on this product?

If this:

http://www.hbosplc.com/media/pressreleases/articles/halifax/2008-08-27-TheHalifax.asp?section=Halifax

is still valid, then yes.

jingle68

they are now quoting 3.5% fixed for 4 years, i have 13k in a cash isa with natwest paying 3.49 variable (inc bonus) at the mo. Is it advisable to fix at 3.5% over 4 years with halifax or is that too long?

I dont need access so tying up the savings wont be a problem.

uih039

jingle68 wrote: »

they are now quoting 3.5% fixed for 4 years, i have 13k in a cash isa with natwest paying 3.49 variable (inc bonus) at the mo. Is it advisable to fix at 3.5% over 4 years with halifax or is that too long?

I dont need access so tying up the savings wont be a problem.

IMO, fixing at 3.5 for 4 years is too long. My guess is rates will start rising in about 18 months.

LesU

brewerdave wrote: »

I've applied to move 2 existing ISAs to Halifax into their 4 year fixed deal which was 4% - the advisor did tell me that I would only get the rate existing when all the transfers were complete, not necessarily the 4%.

Both myself and my wife have opened a Halifax FRISA at 4% over 4 years in the last 2 weeks. Both are transfers, myself an Icesave one and my wife a standard transfer. I was specifically told and my wife was told on two separate occasions on the phone,(she rang again to check on this) that the rate quoted was guaranteed, and would only change if it went up (laughs all round).
No one said that it would be dependant on what the rate is when the transfer has been completed.