Halifax ISA Saver Direct 5% rate to be cut

Kazza242

alared wrote:

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

If the rate becomes uncompetitive after the 1 year 5% fixed rate ISA matures, you are free to transfer it, without penalty, to a different Halifax ISA or to a different provider. Therefore, I wouldn't worry about it.

mike33_2

Just to verify Kazaa if you want to transfer to whoever you want to after a year could they change the rules on the bit where they dont charge you a penalty.

Kazza242

mike33 wrote:

Just to verify Kazza if you want to transfer to whoever you want to after a year could they change the rules on the bit where they dont charge you a penalty.

I suppose, they could, mike33, but you have to remember that rule changes can be applied to all ISA's, by all providers at any time. Even Stakeholder ISA's can have their terms and conditions changed at any time by the providers offering the products. Therefore, we can only comment and make decisions upon what we know now. If they choose to change the terms and conditions at a later date, then we have to make fresh decisions then, based on the information we have available to us.

If we spend too much time worrying about what might happen, we wouldn't do anything and sometimes it can mean missing out on a good deal through being too cautious.

mike33_2

Thanks Kazaa for that,anyway my accounts transferred now so like you say no point in worrying now so see what happens in a years time

masonic

Kazza242 wrote:

I suppose, they could, mike33, but you have to remember that rule changes can be applied to all ISA's, by all providers at any time.

Yes, but would they not have to give you advanced notice of changes to their terms & conditions and give you the option to transfer to a new provider before those new T&Cs come into effect? Surely companies can't make changes to the T&Cs you sign up to without at least your implicit consent.

Kazza242

masonic wrote:

Yes, but would they not have to give you advanced notice of changes to their terms & conditions and give you the option to transfer to a new provider before those new T&Cs come into effect? Surely companies can't make changes to the T&Cs you sign up to without at least your implicit consent.

If a bank/building society have subscribed to the Banking Code then they should do the following:

"6 Terms and Conditions
6.1 We will give you any relevant terms and conditions for the product you have asked us to provide when you apply to become a customer or accept a product for the first time.

6.2 All written terms and conditions should be fair and will set out your rights and responsibilities clearly, legibly and in plain language. We will only use legal or technical language where necessary.

Changes to terms and conditions

6.3 When you become a customer, we will tell you how we will let you know about changes to terms and conditions.

6.4 If the change is to your disadvantage, we will tell you about it personally at least 30 days before we make the change. At any time up to 60 days from the date of the notice you may, without notice, switch your account or close it without having to pay any extra charges or interest for doing this.

6.5 We may make any other change immediately and tell you about it within 30 days".

[Source: The Banking Code 2005 ]

Even though the banking code does set out the above rules, inevitably there may be some financial institutions that might try to get around them. E.g. the rules regarding ISA transfers, where they must be carried out within 30 days. Well, I've seen some posts on this website, where people have had to wait a lot longer for their transfers to be completed. Also on this site and in the national press, there have been posts/letters where irate customers have complained that they have not been made aware of changes to the terms and conditions related to the products they hold. I suppose, an institution can claim that they have sent out letters to their customers outlining changes, when maybe that might not be so. Of course the vast majority do endeavour to adhere to the rules.

Anyway, I'll stick by what I said earlier. It's best to make decisions based on the information you have available to you now. If a change is made in the future, decide what to do then. I'm pretty certain that I'm going for the Halifax 1 year 5% fixed rate ISA.

derrick

derrick wrote:

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.

Have now received my paperwork confirmation from Halifax, whilst I did do this over the phone on 23rd March, the start date is 30th March, still well before the end of this tax year and included the interest for the month it was in the variable ISA saver, the Maturity date is 30th March 2007.

Dagobert

I phoned the Halifax* and they told me the variable rate ISA can be converted to a fixed rate ISA from 6th April. No need to open a new account.

However, I was told that that can only be done at a branch, not over the phone, which seems ridiculous. For me it's a 26mile round-trip. Does anyone know whether this is true?











* 0800 389 3456, credit card line, but were happy to transfer the call

hansi

No, you don't need to open a new account but if you don't do it by 5th April, it means your "new" fixed rate ISA from 6th April can't be funded with £3000 in the 2006/2007 tax year. Also, you DON'T have to do it at a branch. I switched both Mrs Hansi's and my Diredt ISA to the Fixed Rate ISA on 27th March over the phone ( and I checked and it shows online). So I can now open a new ISA (with Halifax or anyone else) from 6th April.

derrick

Dagobert wrote:

I phoned the Halifax* and they told me the variable rate ISA can be converted to a fixed rate ISA from 6th April. No need to open a new account.

However, I was told that that can only be done at a branch, not over the phone, which seems ridiculous. For me it's a 26mile round-trip. Does anyone know whether this is true?

No it CAN be done over the phone, see my posts, #61 & #78, but today is the last day!!