Abbey 3% ISA - transfer from Halifax

jodiesmitham

Hi all,

I had a fixed rate Halifax Fixed Rate ISA, which matured yesterday. Abbey are offering a 3% ISA, which I can access at any time. However, when I called Halifax just now to check the money had matured, they warned me that Abbey are advertising the 3% to get loads of business, but because the rate is variable, they are likely to drop their interest rate soon.

Has anyone experienced this? Is it normal for banks to advertise a high(er) interest to gain customers and then suddenly drop their interest rate? I would go with another fixed rate this year, but most are not advertising a 1 year deal and I am worried that I may need to access my money if I am made redundant!

Many thanks!

datostar

jodiesmitham wrote: »

Hi all,



Has anyone experienced this? Is it normal for banks to advertise a high(er) interest to gain customers and then suddenly drop their interest rate? I would go with another fixed rate this year, but most are not advertising a 1 year deal and I am worried that I may need to access my money if I am made redundant!

Many thanks!

It is very common for them to do this. They like to HOIK people in with a high rate then drop it!

McKneff

Why not just transfer it within the Halifax, my Isa with Halifax is instant access and 3%

jodiesmitham

Hi McKneff,

I wasn't offered 3% for instant access from Halifax. I was offered a 2 year fixed rate (with no access to funds) for 3.25%. That was hardly an incentive to stay.

Can you let me know the details of the instant access ISA you have with them please?

Many thanks,

Joy

McKneff

Actually i should have said its sort of instant. Sorry, this is how i work it.

It is just an ordinary 3% mini cash ISA but i have a current account with them and use internet banking.
The accounts are listed on the page, i just transfer from ISA to current, it does this instantly ' before your very eyes' so to speak so the money is actually available from the currnet account straight away, if you see what i mean.
That way you dont need an extra iSA withdrawal card or have to go into the branch or request by phone etc

To be quite honest, there are some real horror stories about the incompetence of Abbey, i was with them last year, my OH isa transferred to Halifax within 3 weeks, they lost mine, sent another one, first one found and deposited it in my Halifaz account, cancelled it, debited it back out again because the issued another cheque.

My daughter filled in an Application for 3 times to transfer her current account
They never actually cancelled her old account with HSBC and a month later daughter got a statement with £400 in it which was very nice but still incompetent. Her ISA took 3 months to open, and again 2 application forms.
I wouldnt touch Abbey with a bargepole.

I try not to take money out (my husband says i need an injection before i draw money out) lol.

andypandy1

McKneff wrote: »

Why not just transfer it within the Halifax, my Isa with Halifax is instant access and 3%

Hi

Can you please tell me which Halifax ISA account pays 3% for instant access. Is it still available?

Thanks

cottager

jodiesmitham wrote: »

I had a fixed rate Halifax Fixed Rate ISA, which matured yesterday. ...
I would go with another fixed rate this year, but most are not advertising a 1 year deal and I am worried that I may need to access my money if I am made redundant!

In the same boat with Halifax, and mine's being TF to Cheshire B/Soc at 3% fixed for 12 months (min. £1k) if you were interested. Not for you if you need instant access though.
http://www.thecheshire.co.uk/investment-saving-account/individual-saving-account/12-month-fixed-rate-cash-isa-17th-issue.asp
Can download application and transfer forms online, then complete by hand and post off... so be aware there's a risk it could be withdrawn before your application gets to them. That's already happened to me this week with Northern Rock, missing 3.50% when it was w/drawn on Monday.

McKneff

andypandy1 wrote: »

Hi

Can you please tell me which Halifax ISA account pays 3% for instant access. Is it still available?

Thanks

helo there AP, its just an ordinary mini cash isa, as far as i know, have a look on their website.

Edit - Ive just had a look and its just called a halifax isa saver.

andypandy1

McKneff wrote: »

helo there AP, its just an ordinary mini cash isa, as far as i know, have a look on their website.

Edit - Ive just had a look and its just called a halifax isa saver.

Is this account closed to new money. I cannot see this rate as being currently available?

Thanks

rb10

The instant access ISA paying 3% was the ISA Direct Reward. It was available between around the end of the 08/09 tax year, and the start of this tax year (March-ish to May-ish).

The rate on existing ISA Saver Directs is fixed at 3%, but it's not available on new accounts.

alared

From today:

Northern Rock
　
FIXED RATE ISA Issue 128 launched w.e.f. 11.12.09: a fixed term Cash ISA maturing 15.12.10 with a minimum investment of £500 paying 3.00% yearly. Withdrawals and transfers out permitted on 60 day loss of interest. Further additions (minimum £250) allowed up to 30 days after issue closed. Transfers in accepted. On maturity instant access permitted for 30 days, then converts to prevailing 30 Day ISA.