We got £1 per £1000 interest :(

catz747

Hi,
My husband & I both have cash ISAs with the Halifax which we've had for a few years. The interest was ok before but if they sent us a letter telling us that the interest had dropped to next to nothing, we mustn't have read it. I really want something similar, I know it sounds silly but I do prefer to have a book but we don't know where to transfer our money to or how to get more for it.
Is there any advice please, I feel such an idiot for getting nothing & not knowing something sooner?


EDIT: Should mention that the £1 / £1000 wasn't the interest rate but it's the equivalent to what we got for the total amount of money that we built up over a few years. Not sure how much we actually put in this year but am sure we could have done better for the amount that we have in total. We must have the how this all works all wrong

debbie42

The interest rate is probably 0.10%.
A&L did a similar thing with an old ISA.
It's quite common with savings accounts these days: a nice rate to entice you in, which changes or ends then they rely on you not bothering to switch.

Have a look at the thread here:
http://forums.moneysavingexpert.com/showpost.php?p=4603369&postcount=1

and transfer to a better paying account!
If you go for something like a fixed rate (or guaranteed for a term) then write the end date in your diary and re-check then.

Gorgeous_George

Transferring is a pain but it isn't difficult and you owe it to yourself to ensure you beat the banks at this game. Get it into a better paying account WITH A BETTER PROVIDER. Personally, I like Northern Rock They provide some good ISA accounts and have always been very clear about my options.

If you are likely to use this year's allowance it is important NOT to withdraw from the old ISA (use a Transfer form from your new ISA supplier instead). However, as the allowance is now £5,100 each, the 'do not withdraw' rule may not matter.

You could consider other savings options - such as NSandI's index linked savings bond (for 3 or 5 year terms). These pay RPI +1% tax free.

GG

catz747

Thanks both, I'll have a look at that thread & find something better - we won't be making that mistake again! Thanks for the advice

cepheus

My Mother had the same shock when she got £10 interestfrom £10000, so we shifted into Halifax's other variable ISA account. I think it is postal and 2.7% if it is still around.

Bear in mind though anything below inflation (RPI or CPI) is really losing money and most accounts even ISAs are below this at the moment. I've just closed a cash ISA (my old Tessa) and placed it in NS&I 3 yr bond at RPI+1%

rb10

Craig12 wrote: »

I got £9.43 on just over £9000 at the Halifax. When I saw the interest, I just went mute. A week later, I pulled all of the money out. Its now with a further £4000 doing nothing. The £4000 was the accumalation of assets during the low interest rate and was already out because I refused to deposit a penny, so now I have just over £13000 out of the bank and there is no where else to put it. I don't trust them anymore.

A rash move. It would have been far better to move it to a better account. Assuming that you are talking about an ISA, like the rest of the thread, you could have kept the account instant access, and got over £200 at the end of the year from Halifax - or potentially a little more if you moved it elsewhere.

The issue is not about not trusting them - as they do exactly what they tell you in their T&Cs and published rates - it's about you choosing to hold a low-paying account.

opinions4u

Craig12 wrote: »

No one told me about the low interest rates by phone, email or letter.

Halifax write to all savers with a balance in excess of £500, usually between April and June.

The mailing includes literature which tells you the rates for every account they offer and also explains how those rates have changed during the preceding 12 months.

So you did get something in writing. They also advertised rate changes in the press, on their web site and in the branches. There were also lots of news stories saying "interest rates are at a record low" - in the light of those news stories, saying that BofE rates were dropping like a stone, what precisely did you think was happening to the returns on your savings?

It was in your face. You chose to ignore it. As a result you cost yourself several hundred pounds.


EDIT: I just received a PM after posting this. It said: "Keep your opinions to yourself!".

cepheus

I tend to agree, the banks should be made to write to their customers at least once a year, expecially if their savings rates fall below the rate of inflation. This should be done in a seperate, clearly explicit letter, like the Bank of England does to the Chancellor when Inflation moves above a target rate.

catz747

opinions4u wrote: »

EDIT: I just received a PM after posting this. It said: "Keep your opinions to yourself!".

I hope you reported it there's far too much crud on these forums putting people off from posting imo.

We definitely didn't receive anything about our ISAs performing poorly this year as I've checked our paperwork *(unless it came with last years statement aha! I probably wouldn't have read it in that case)- there's nothing. You're right about the other stuff though - I've heard all that stuff on the news etc but never related it to my ISA - never thought I need to check that or get it sorted which is why I feel so stupid about it but then why would I think after all this time that they would suddenly drop an interest rate which has been ok since 2003 when I opened it.

If I read what Craig did at the bank I'd have thought they meant new ISAs & think 'well no-one is going to bother with that'

artha

Craig12 wrote: »

I ignored f all, I have a life to live ya know, I can't be looking at the banks every 10 seconds like some desperate hobo.

But you seem to have enough time on your hands to make pointless rants on this forum and offend those who are making a genuine attempt to help you

natman

Craig12 wrote: »

I ignored f all, I have a life to live ya know, I can't be looking at the banks every 10 seconds like some desperate hobo.

I dont think anyone is really looking at the banks every 10 seconds, but it is worth while taking some responsibility for looking at your accounts every so often.

Most accounts have a tempter rate, which generally indicates something like - 'the rate will be above base rate plus 2.7% for 12 months from opening account' after this period it the rate will drop to ................

So in 11 months time you need to start thinking about the what to do.
I agree that the banks dont make it as clear as they could do when the rate is ending, but why should they? I think they are actually alot better than they were.

Not too sure what a deseperate hobo is regarding ISA accounts...Would they look at their accounts every 10 seconds?
I suppose all I am saying is, its your money, its your job to keep an eye on whats happening with it, not the banks...
Every month i do a check on all my accounts to make sure they remain decent, perhaps I am deseperate.