Halifax ISA Saver Direct 5% rate to be cut

hansi

I'm going to open my new 2006/7 ISA with Britannia, 'cos they pay 5% on a fixed rate and I will also qualify for some more loyalty bonus as a result.

Cee

derrick wrote:

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


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!

........After mentioning that one provider allows funded cheques for isa's right up to the 5th today, all of a sudden we have been told we do too. It would have been nice to know yesterday when we were rushing people into branch to get the cheques cleared...

I'll re check the fixed isa scenario, I re read that today and it clearly states we can't do that apart from opening up transfer in and sending a message to the transfer team to fix it when funds arrive...

hansi

I transferred both my wife's and my ISA Saver Direct to the new fixed rate ISA with Halifax on the phone this week, and they said they would do the transfer without me having to go to a branch. Now'Im somewhat confused. Still, if they mess me around, I'll transfer both out to Britannia.

derrick

Cee wrote:

I'll re check the fixed isa scenario, I re read that today and it clearly states we can't do that apart from opening up transfer in and sending a message to the transfer team to fix it when funds arrive...

If a Halifax variable rate ISA is already open, then the funds are already cleared and lodged with the Halifax, as in my case and the cases mentioned where they want to transfer from variable to fixed, as I have already stated I have done it and had it confirmed, paperwork should be here Monday.

My time table:-
22nd February 2006 money transfered into Halifax from previous provider,
23rd March 2006 telephone call from me to Halifax asking to transfer to fixed rate for 1 year,was told no problem that has now been done,
31st March 2006, I ring Halifax to confirm transaction and am told it had been actioned on 30th March, variable ISA, plus 1 months interest, transfered to 1 year fixed rate, paper work sent out 30th March, so when I receive the paperwork I will post back to confirm.

alared

When I was in Halifax branch yesterday I was advised to wait `til 6th April,top up my existing variable rate direct ISA and then transfer to fixed @ 5% because you can`t add any more to a fixed.
Having considered everything why should I tie my money up for a year for a measily .25% and unable to transfer either.

Kazza242

alared wrote:

When I was in Halifax branch yesterday I was advised to wait `til 6th April,top up my existing variable rate direct ISA and then transfer to fixed @ 5% because you can`t add any more to a fixed.
Having considered everything why should I tie my money up for a year for a measily .25% and unable to transfer either.

It depends really on whether the Halifax ISA Saver Direct rate remains at 4.75% throughout the new tax year (6th Apr 06 - 5th Apr 07) or if Halifax choose to reduce the rate further. BOE base rate too is key, if it falls, those that have fixed at around 5% will have made the right decision.

People who cannot tie their money up for a year, would be better off choosing an easy access variable rate isa which allows withdrawals without penalty.

Another option could be an easy access ISA that comes with a rate guarantee, such as the new mini cash isa from NS&I that pays 5.05%. It comes with a guarantee to pay BOE base rate + 0.55% for two years. It launches on Thursday 6th April. You can read more about it here

Macce

alared wrote:

When I was in Halifax branch yesterday I was advised to wait `til 6th April,top up my existing variable rate direct ISA and then transfer to fixed @ 5% because you can`t add any more to a fixed.

Thats what was exactly said to me when I went to see them today. The woman told me to:

come 6th April deposit £3000 into your exisiting variable direct ISA and then transfer to the fixed rate ISA.

Once you have moved to the fixed rate ISA you cannot make any withdrawals or deposits during your term. Therefore if you did not use the full £3000 allowance, tough luck you cant touch your account to make addtional deposits until the tax year is up i.e until Apr 6th 2007.

She also said there is no guarantee that the fixed rate ISA will be still avaliable after 6th April 2006.

alared

What happens to the fixed ISA when the year is up?

hansi

I assume it will go back to the variable rate or whatever fixed rate they have got at the time. They will write to you before the end of the fixed term.

alared

Well I hope it doesn`t go back to these rates!!!


Halifax ISA Saver

Variable Rate Halifax ISA Saver

You can open and operate a Variable Rate Halifax ISA Saver online (new window)

UK rates from 6th April 2006


Balance
AER / Gross % p.a.

£27,000+ 4.05%

£24,000+ 4.00%

£21,000+ 3.85%

£18,000+ 3.85%

£12,000+
3.70%

£3,000+ 3.55%

£1+
3.50%