change isa from halifax?

danster

hi,
last year i had an isa with halifax. it was 5%, but now its dropped to 4.75%. this tax year i openend an isa with Bradord and Bingley. its an esavings isa and is 5%. i wonder if its worth moving my halifax isa to my bradford isa, or do you think bradford will lower their interest rate too?
in real life terms, how much could i financially make if i transferred my halifax isa form last year (£3k) to my current isa (also worth £3k)?
thanks for your help
- D

grade15

I think that you can only have 1 ISA account in a tax year. you can not split your ISA into 2 accounts. I am guessing that you have not closed your halifax isa account? and now that you have opened your Bradford and bingley ISA account..making it 2 accounts in a tax year! best check the small print about how many ISA accounts you are allowed.

YorkshireBoy

danster wrote:

...or do you think bradford will lower their interest rate too?

Who knows?...but my guess is yes - it's just a matter of when.

in real life terms, how much could i financially make if i transferred my halifax isa form last year (£3k) to my current isa

An extra £7.50 per year (£3,000 x 0.25%).

If you're sure you won't need the £3K Halifax money in the near future, why not consider fixing at 5%? (before they lower the fixed rate to 4.85% - at the end of the month?).

lisyloo

Bear in mind that you with lose some interest when you transfer accounts.
It seems that most banks (including Halifax) transfer accounts by cheque and send them in 2nd class post and the receiving organisation might wait for the cheque to clear before adding interest.
This means that you will lose at least a few days (possibly 2 weeks) interest.
Factor this into you calculations.

When you add this in you might find it's not worth the hassle.

FL

I am in the middle of transfering my ISA from the Halifax and having sent a form to them they have advised me that they are not only 3 weeks behind with the mail - they have no record of the form so I have to send it again. This will add on another month.

I had problems with the Halifax when I opened the account and now when I want to leave. Won't bother with there postal accounts again. Much better at a branch level. My advise would be to move and get out of there.

moneysavingobsessive

FL - a remarkably similar thing happened to me. They also lost my complaints letters and emails! I am currently trying to reclaim the interest difference, but they are not returning my calls! As they do not respond to letters within 5 working days, I think that they are breaking industry standards. Even if they do pay me the lost interest, it won't be in the ISA as they have now closed it and it won't even cover the calls and stamps. If they don't sharpen up their act, I am seriously tempted to move elsewhere.

FL

Well they have advised me today that they have started the transfer out process but could provide no more detail as of course the ISA dept did not open until 9:30 due to staff training. They are on mail they received on the 25-4

mary

When chasing mine up, which took around 5 weeks, coz I had to resubmit my form 3 times, as they lost the first two, I asked about why they send it by snail email. Apparently by law, they can't just do an internet transaction, it has to have the accompanying paperwork with it explaining which years the ISAs are for, where they are coming from etc.

oldagetraveller

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Ah well, looks like another week or so until they get to mine! Sent Halifax a transfer form on 2nd May, to their correct Leeds address, and having not seen any progress 'phoned them yesterday. The CS rep said she would find out and call me back within 2 hours. Strangely enough she did and advised of major backlog in isa transfers and couldn't tell me whether my transfer request had been received. I was advised to leave it for another 30 days:eek: and if nothing had happened to 'phone again. That's appalling. :mad:

moneysavingobsessive

Well Halifax assure me that a letter of apology and a £25 cheque is in the post - I know its not much compared to how much they'd charge me if I made a mistake, but I feel a small moral victory! Its not compensation for the delay however (I only lost £3 in interest) but because I logged when phone calls/letters/emails were not returned. Keep persevering guys...

Mikeyorks

grade15 wrote:

and now that you have opened your Bradford and bingley ISA account..making it 2 accounts in a tax year!

No ... the OP is looking to 'move' (i.e. transfer) the Halifax ISA into the existing BB ISA. Quite permissible.