Halifax ISA Saver Interest rate

JonK_3

I have had money in this ISA since my TESSA matured in 2001. It is a variable rate ISA with interest paid annually. I was always notified at year end (May) of the interest paid and current balance. The interest fluctuated from year to year, but was always broadly in line with other saver interest rates.
This year I received no such notification and could find no information on their web site of current interest rates. I visited a branch to have the account updated and found that the interest rate for the year ended April 2010 had been 0.1%. I called their customer service desk to be told that since interest rates vary so frequently they could not be expected to advise their customers of every change and it was up to me to check on a regular basis.
I have closed the account and am moving the cash elsewhere.
I should like to know whether annual rates are set at the start of the financial year, at any time during the year, or at the end and how, on that basis, one is supposed to come to a decision with this type of account.

Simon11

There are two types of accounts.

Fixed or variable.

Fixed will stay the same and will normally be fixed for 1 year depending on the product.
Variable will change when the bank wishes too but will mostly follow the pattern of interest rates.

It sounds like you want to know what rate you will recieve for a year, so I'd recomed a fixed rate. How do remember that lots of ISA accounts offer good rates, however its only a bonus! So after a year the saving rate will drop to peanuts- so make sure you check your rates when the fixed rate is comming to an end!

Stompa

JonK wrote: »

I should like to know whether annual rates are set at the start of the financial year, at any time during the year, or at the end and how, on that basis, one is supposed to come to a decision with this type of account.

It's a variable rate account, so the rates can change at any time. I'm afraid it's up to you to keep an eye on the rate you're currently getting and transfer elsewhere if you don't like it.

FWIW the rate is shown here:

http://www.halifax.co.uk/savings/personalrates.asp#variable_rate_halifax_ISA_Saver