Halifax ISA Saver Direct 5% rate to be cut

alared

Just stay where you are because you can bet your boots they`ll all follow with cuts.
Silly of me I didn`t realise the BOE had cut rates the other day.
Surely that is the reason for the Halifax`s move (my !!!!!!)

regularsaver1

they increased some rates today

regularsaver1

ie guaranteed reserve £1000+ (fixed) 5% gross for 2 years and 5.10% for 3 years

they were not that before

Kazza242

david78 wrote:

Damn.

I was planning to go with the Halifax too for next year. I've even set up the BACS transfers to my Halifax Web saver to get the money (£3000) in there by the 6th so I can effect a quick transfer into the ISA when its open. (Just cancelling them now)

Now it looks like I might as well just pay the money into my M&S ISA and wait and see what happens in April. More than likely, all rates will drop by 0.25% including A&L. When they do I'll just have to transfer to the best payer.

I posted the following on another thread earlier this week, regarding the M&S ISA:

***********************************************
I also have an M&S mini cash isa. I checked the M&S website this week and they have now changed their guarantee:

"4.75% AER/tax free*
We guarantee that our interest rate will stay at least equal to the Bank of England Base Rate until 31 December 2007".

M&S ISA webpage

So I translate that as: "We'll keep our rate at 4.75% to get as much business in for this next tax year (Apr 6th 2006) and then we'll drop our rate to 4.5% or whatever BOE base rate is in late-May to early June".

***********************************************
It's only a matter of time before the M&S' rate drops to 4.5%. I will probably open a new mini isa for next year with another provider and transfer my M&S isa savings into it.

david78

Hi Kazza,

Yes I saw your other thread and agree with you. It will be 4.75% until 6th April, then it will be 4.5% until the BOE base rate go down, then it will go down to the BOE base rate.

What I don't understand is why the guarantee is to 31 December -- no wait I have it (lightbulb moment), maybe they are anticipating some rises in the BOE rate between January-March 2006 and don't want to pass these on.

Best thing I think is to look for a transfer around May-June, and another one Jan-Feb next year. (Assuming I can transfer twice!)

weener10

I just tried phoning th Halifax to change over to the 5% fixed rate, but it looks like your unable to do this over the phone and have to go into your local branch......

alared

This cut is probably designed to get people to switch their cash into the fixed rate.
Is the extra .25% worth bothering about when you lose the instant access and can`t get at your dough.
On £10k you`re only talking about £25 a year.

derrick

weener10 wrote:

I just tried phoning th Halifax to change over to the 5% fixed rate, but it looks like your unable to do this over the phone and have to go into your local branch......

I did this over the phone on Thursday with no problems whatsoever, go HERE and click the "we can call you" button and they will call you and save the cost of the 0845 number.

Milarky

alared wrote:

This cut is probably designed to get people to switch their cash into the fixed rate.
Is the extra .25% worth bothering about when you lose the instant access and can`t get at your dough.
On £10k you`re only talking about £25 a year.

Do you see the Bank of England increasing rates this year? I don't. I'd say that interest rates are set to trim and that fixing at 5% (say for a year as suggested) is a good bet. At least they are offering choice.

alared

Nothing wrong with fixing if you`re sure you DON`T need the money for a year, but if you do it`ll cost you dear.