Halifax ISA Saver Direct 5% rate to be cut

Cee

Halifax has 3 different types of Isa accounts.
The post referring to the interest rates 2 pages back is for the basic passbook isa the "poor relative" this is for those of you who hate telephone banking and prefer to take the money into the branch. Its rates are variable but tiered depending on whats been invested.
If anyone has one of these accounts and wants to gain more interest, a simple call to the halifax will have the account redesignated to the isa saver direct - the telephone based isa that is viewable online too. The passbook is no longer valid and to gain access to your funds requires you calling the Halifax with an account number for the funds to be transferred into. Similarly it can be funded via standing order or bank transfer or sending in a cheque, you will not be able to go to the branch and pay at counter. Really that is the only real "penalty" about the account.

The third account is the fixed rate account that goes on for 1-4 years - your choice. With any lump sum investment the funds don't get accessed so they can mature and make money for you. Thats why dipping into them will obviously lose you interest. You are required to open a fixed rate isa for the full 3000 not a penny less!

Isa transfers in can be done at anytime, accounts can now be fixed over the telephone and redesignated from the variable isas to the fixed rate isas. Halifax doesn't charge for transfers out either unlike some banks.

Although the Isa direct has dropped to 4.75% to lose out on interest, for those of you who don't need access to the funds and have the 3k to invest, fund it on the 6th and redesignate to fixed isa that way you won't lose the 5%.

I still think 4.75 isn't too bad an interest rate compared to those who have specific rules to them... thats me speaking from a consumer point of view and not a rep