Halifax ISA Saver Direct 5% rate to be cut

mike33_2

Thanks for that kazza-so ive decided to switch to the 5% fixed rate going on the basis halifax could cut the rate even further on the variable rate as you say and would be surprised if they upped it again.

equitydealer

I have got no idea why Halifax are cutting their ISA rate (apart from skimming extra profits for themselves :T ). There is no indication that interest rates will drop, I can't see anything happening for the rest of the year.

I'll be transferring my ISA to B&B (5%) but I've just noticed that B&B are offering a 4.85% fixed rate ISA which may indicate that they are about to slash their variable ISA rate too.

dixie_dean_2

I'm not too hot on ISAs but currently have the Halifax 5%er (or 4.75 as it's gonna become). I think I'll leave this in there as I need access and can't be bothered transferring for a few quid. I want to start another one in the new year - will Halifax offer me another one automatically? Is the B and B 5% instant access? In about September I will need to withdraw from my original Halifax one and in effect will close it down. How do I go about this? And when I do will I get the interest for the period between April-September?

dixie_dean_2

Sorry. Thats a really crap post. I think what I've said is correct and I can figure out how to close it down myself, I'm sure. It will be hard but I'm sure if I put my mind to it I can close a savings account down! Can someone just confirm my questions re instant access and getting the april-sep interest.

Cheers

derrick

dixie_dean wrote:

Sorry. Thats a really crap post. I think what I've said is correct and I can figure out how to close it down myself, I'm sure. It will be hard but I'm sure if I put my mind to it I can close a savings account down! Can someone just confirm my questions re instant access and getting the april-sep interest.

Cheers

If you close the account down, you will receive the capital and interest up to but not including the day of closure.

Cee

The halifax fixed isa's interest rate went from 4.55 to 5% around the beginning of March, allowing both that and the Isa Direct level pegging at 5%

We have been able to open customers fixed isa's after transferring in isa's in a variable account and then fixing when monies are received. Obviously we explain to the customers that the rate is fixed at the rate we receive the funds on the day.

The Halifax doesn't charge for transferring out

Finally in a meeting recently we were told that the rate was reduced because of the drop in the base rate and we are to expect other banks to follow suit.

I noticed the change online myself but didn't receive any notification from anyone officially about that. I like to keep up to date on the rates daily and pass them onto my team. Having only recently joined the halifax in the savings department I found this a tad unprofessional. Had I not read the site our customers would have made us feel very foolish.

We can't redesignate variables to fixed isas over the telephone you do have to go to the branch to do this. Variable passbook isas which get 3.65% can be redesignated over the phone, the passbook is no longer valid as the Isa Direct is a telephone based account.

I've had countless calls today from customers who have read the advert in the press stating that our direct isa is a fixed account for 5% for a year. This has caused lots of confusion but because we are very busy dealing with them at the moment, I doubt anyones questioned this.

I forgot to say, the transfer in of any Isa does not count as a funding in any tax year, therefore if you were to transfer in funds in this tax year ( too late now unfortunatly) we would have opened up a variable isa to hold the funds and if you hadn't already you can add a further 3k after the next tax year this isa can then be used to fund for another 3k after which you can shop round for the interest rates and do what you like with it.

YorkshireBoy

Cee wrote:

Finally in a meeting recently we were told that the rate was reduced because of the drop in the base rate...

I'm assuming this is a different 'base rate' to the BOE base rate - which has remained the same since last August?

Cee

I really don't know, to be honest i've not heard about one and was looking forward to hearing my mortgage had dropped as a result too!

I will endevor to look into it further....

Ok i've been to the bank of england website and the next revue is on the 6th April, the date the variable H'fax isa changes.....

YorkshireBoy

Cee wrote:

I really don't know, to be honest i've not heard about one and was looking forward to hearing my mortgage had dropped as a result too!

I will endevor to look into it further....

Thanks, could you also look into this as well...

We can't redesignate variables to fixed isas over the telephone you do have to go to the branch to do this.

...because there are at least 2 posters on this thread who claim to have 'redesignated' their variable ISA's as fixed ISA's over the phone.

derrick

Cee wrote:

The halifax fixed isa's interest rate went from 4.55 to 5% around the beginning of March, allowing both that and the Isa Direct level pegging at 5%

Finally in a meeting recently we were told that the rate was reduced because of the drop in the base rate and we are to expect other banks to follow suit.

The last BoE rate drop was in August last year! I bet they won't implement a rise before it happens!

Cee wrote:

We can't redesignate variables to fixed isas over the telephone you do have to go to the branch to do this.

I did this last wek over the phone, and have just spoken to the Halifax who have confirmed it has happened and that I should have the paperwork by Monday!