Halifax ISA Direct Reward

JoeCrystal

Halifax has announced the launch of a new product – the ISA Direct Reward, offering a guaranteed interest rate of 3.00% AER/Gross for the first year. The product will complement the existing range of ISA products and is available from 24th February 2009.

Key Features:
• Guaranteed 3.00% rate of interest (AER/Gross) for 12 months from date of first deposit
• Minimum investment of £1,000 which must be maintained throughout the 12 month period
• Unlimited deposits (limit of £3,600 applies for tax year)
• Up to four withdrawals can be made in the first 12 months
• Can be opened in branch, by phone or online
• Tax free interest paid annually on 5th April
• Transfers in of current and or/previous years ISA funds accepted.

It is any good? Sorry if someone already posted it

oxenryd

JoeCrystal wrote: »

It is any good?

I'm not really convinced at 3 %, waiting to hear what others think

xyz123

My personal opinion is that it is quite good. And heres i think why...Firstly, Fixed rate and penalty free withdraws do not go with each other often. so you are getting best of both worlds...Secondly for 1 year fixed i think 3% is a decent deal (especially as it allows transfer in from other ISAs)....current bank of england rate is 1%...there is no way the base rate will increase for at least next 6 months and even then we are looking at small increases......Current leader in variable rate and instant access isas give about 3.5% (likely to drop to 3% in a week or so to reflect 0.5% reduction by bank of england)...so in the most optimstic scenario the leading isa rate for accounts allowing transfers in (i.e. excluding the whole bunch of accounts that will appear next month to get people to open up the new isa) wont reach 3% for at least 6 months....So considering it all and the added fact that you have exact idea of what you will get at the end of the year..i think this is a very good deal...Cheers

smoothgroove

Thinking of going for this myself. But two questions...I have already spent my £3600 ISA with HSBC this tax year, so can I open this account now as long as I don't make any more deposits?

I would presume so, but then I'm confused because I need to make a minimum £1000 deposit, which I will not be allowed to do until the new tax year in April? Shall I wait until April?

I'm looking to transfer my HSBC ISA into this Halifax ISA which looks a very easy process. Thanks for any help!

rb10

You can transfer it now, just fill out an ISA transfer form from Halifax. This would then guarantee you the rate, and you would be able to add your 2009/10 funds at any time from April 6th.

So although the account would be opened with a £0 balance, this would be ok, as you are transferring in.

jimbow25

Given today's BoE cut:

Though it's not listed as a best buy on Martin's article or Kazza's list at the moment, this must be one of the best options for transfers in at the moment, so long as it stays at 3%.

Though not the best fixed rate account available right now, rate-wise, for anyone who doesn't want to lock all their money away, but can be sure of only making 4 withdrawls, this must be better than, say, the Natwest e-ISA? The latter is 3.25% from £1 - £9,999 right now, with both the February and March BoE base rate cuts still to be factored in. I was going to apply for the Natwest e-ISA and do a transfer from my old account but I'm pretty sure the Halifax one, if fixed at 3%, will have a better rate before long and I'll still be able to make a few withdrawls.

I just applied by phone - though the website says you can't open an account if you already have an 08/09 ISA, this is not strictly true so long as you're transferring this year's allowance as well. My ID checks were fine so I'm taking the transfer form to a branch tomorrow to get it started. The website says you get the rate guaranteed from the date you hand over the transfer form (the guy on the phone actually said you get today's advertised rate so long as the transfer money arrives within 60 days).

456789

I went to branch today and they said they would convert my existing isa into this - checked on online banking and it is still showing the old one - will wait and see

rb10

It'll probably be an overnight update, 456789, as it's easier to process things like this as a batch when the system is quiet rather than individually throughout the day.

Milarky

Similar products:

First Direct 3.10% (to 30.4.10) minimum balance £1; unlimited deposits and withdrawals...

More flexibility than Halifax but transfer in must be from non-First Direct sources

For slightly higher interest, there is

Manchester BS 3.31% (to 30.4.10) minimum balance £1,000; further deposits until 30.4.09 only; thereafter no additions and withdrawals/transfers on 60 days notice only

456789

rb10 wrote: »

It'll probably be an overnight update, 456789, as it's easier to process things like this as a batch when the system is quiet rather than individually throughout the day.

OK - also the lady kept trying to sell me a Halifax S+S ISA she even opened up a pdf showing a -30% return last year lol

bristolleedsfan

Milarky wrote: »

Similar products:

For slightly higher interest, there is

Manchester BS 3.31% (to 30.4.10) minimum balance £1,000; further deposits until 30.4.09 only; thereafter no additions and withdrawals/transfers on 60 days notice only
[/quote


Thats not a similar product as it appears that withdrawals are subject to both 60 days notice AND 60 days loss of interest

http://www.themanchester.co.uk/mbsnew/savings/content/fixed_rate_cash_isa_issue_1.asp


"Closures, withdrawals and transfers out are permitted by providing 60 days notice and subject to a penalty equivalent to 60 days loss of interest on the amount withdrawn."

Withdrawal Arrangements
Withdrawals and closures are available subject to 60 days notice and 60 days loss of interest on the amount withdrawn


https://www.emoneyfacts.co.uk/news/news-search.aspx?newsarticleid=183162

"Earlier access and transfers out on 60 day notice and 60 day loss of interest. "