Halifax ISA Saver Direct 5% rate to be cut

mr_fishbulb

derrick wrote:

No fees, don't forget A&L has a bonus of .7% guranteed, however it's base rate,4.75% can go down, Halifax is fixed for 12 months

Cheers. It would have to go down half a percent for me to lose out.

derrick

mr_fishbulb wrote:

Cheers. It would have to go down half a percent for me to lose out.

Sorry I made a mistake, A&L base rate is 4.5%, therefore the full rate inc bonus is 5.2%

zag2me

Whats the procedure for changing to the Halifax fixed rate isa?

regularsaver1

there is a form to fill in - explaining why one can change from normal book based isa to direct isa over phine, but not to a fixed one as you need to sign for new conditions

bjp79

Dumb question I know, but there were a few things I was wondering about...

1. If I swap now, and it goes through before 6th April, will I still get all the interest I have accrued, that would be due to be paid by Halifax on the 6th?

Would the interest be paid up by halifax for the period of the year that I had it with them before the transfer, or would A&L have to pay the interest on behalf of Halifax on the 6th?

2. If the transfer of £3000 goes through to A&L after the 6th of April, would I still be able contribute my £3000 allowance, or does that count as my full quota for 06/07?

Thanks in advance...

Ben

sloughflint

bjp79 wrote:

Dumb question I know, but there were a few things I was wondering about...

1. If I swap now, and it goes through before 6th April, will I still get all the interest I have accrued, that would be due to be paid by Halifax on the 6th?

Would the interest be paid up by halifax for the period of the year that I had it with them before the transfer, or would A&L have to pay the interest on behalf of Halifax on the 6th?

2. If the transfer of £3000 goes through to A&L after the 6th of April, would I still be able contribute my £3000 allowance, or does that count as my full quota for 06/07?

Thanks in advance...
Ben

Each bank pays interest for the days funds are with them, no loss of interest either.
£3000 is the maximum quota anywhere for any tax year.
( I thought Halifax paid up on 01/04)

bjp79

Ok... So say I set up the transfer from Halifax to A&L today...

Halifax would pay me what's due in interest on the day that its due to transfer accross to A&L - e.g. If I had the full 12 months of interest on 3k, they'de pay me £3150 (or however much is due) right before it went to A&L... whether its before their 1st April anniversary date?

Say my transfer goes through after the tax d-day - would I still be allowed my 3k to contribute in the 06/07 financial year - or does a transfer after tax d-day nullify my right to contribute? If I'm going to transfer - is it essential I do it before the 5/6th April tax day?

Lychee

I don't suppose you can have a Direct ISA AND a Fixed rate ISA? You're not allowed to make additional deposits in the fixed rate after all.

hansi

derrick wrote:

No it is a fixed rate for a fixed term, I think you can withdraw money but there are penalties. you can however open a new ISA from April 6th with any provider you want as it will be a new tax year and your new £3000. limit applies

yes, I know that it's a fixed rate and it's for a fixed term but my transfer will take place before 5th April, so from the 6th April I can deposit another £3000 into the Fixed rate ISA. Correct?

hansi

zag2me wrote:

Whats the procedure for changing to the Halifax fixed rate isa?

If you have already have a Halifax ISA, you can ring them and transfer it over the phone, I did, today.