MSE News: Halifax to pay Isa transfer interest from day one 29 September 2010 at 11:57AM in ISAs & tax-free savings 22 replies 3.7K views

Former_MSE_Guy

This is the discussion thread for the following MSE News Story:

"The Government-backed bank will pay interest on cash Isa transfers from the point it receives a signed form ..."

Read the full story:
Halifax to pay Isa transfer interest from day one

Simon11

I used to have my ISA with Halifax along with my current account. However I took my ISA money to another building society as I would recieve 0.4% more However once my 1 yr fix comes to an end I will take it back to Halifax!

Great news and I hope they get lots more business! Well done:D

Consumerist

Halifax should, perhaps, be commended for this move but let's not forget that they would have been required to do much the same from January, anyway. Now is, however, a good time to remeber the role MSE has had in bringing this about.

Well done to MSE, I say.

lisyloo

This is great news.
Although I've had poor service from Halifax in the past, they will now be getting my money.

rb10

Consumerist wrote: »

Halifax should, perhaps, be commended for this move but let's not forget that they would have been required to do much the same from January, anyway.

As far as I understand it, there is currently nothing in place (or pending) that will require ISA providers to do anything like this.

They will fairly soon have to pay interest to ensure that the transfer is seamless - but Halifax have been doing this for years anyway (until today they pay interest from the day after the date on the cheque for cheque transfers, or the day the money is received by Halifax for BACS transfers).

This change is well over and above the regulations, as it will mean you are paid interest from the day you hand the form in, even though Halifax won't get the money for some time.

FlyingPasty

rb10 wrote: »

As far as I understand it, there is currently nothing in place (or pending) that will require ISA providers to do anything like this.

They will fairly soon have to pay interest to ensure that the transfer is seamless - but Halifax have been doing this for years anyway (until today they pay interest from the day after the date on the cheque for cheque transfers, or the day the money is received by Halifax for BACS transfers).

This change is well over and above the regulations, as it will mean you are paid interest from the day you hand the form in, even though Halifax won't get the money for some time.

The Super Complaint 'rules' are that a provider must pay interest from either the date on the cheque or day 15/16 (can't remember off top of my head) of the transfer - which ever is earliest.

Nationwide have also now said they will back date all interest to the received date of application for transfers in.

TattyBear

Halifax customer service is abject. I can't even open their 4 year fixed to transfer in my current ISA because they won't let me.

lisyloo

Halifax are rubbish but I'm still using them for their ISA promise.

The didn't stamp our forms.
Sent my husband about 5 transfer forms saying they'd lost the first one.
Backdated interest to the wrong date.

We are getting 5 weeks extra interest but only after complaints.

opinions4u

TattyBear wrote: »

Halifax customer service is abject. I can't even open their 4 year fixed to transfer in my current ISA because they won't let me.

It would be helpful if you could explain why they won't let you.

Consumerist

There has been some discussion in another thread suggesting that the payment of interest during the transfer period may contravene the ISA regulations.

Although the argument is quite compelling, I can't believe that a government-backed bank would issue an ISA which did not comply with the regs.

That said, I would be interested to hear any further thoughts on the issue.

TattyBear

opinions4u wrote: »

It would be helpful if you could explain why they won't let you.

I opened a 2 year fixed at 3.5% with the Halifax last April, and stuck this tax year's (2010/11) contribution in it. ie new money.

My Northern Rock 1 yr fixed has matured today, and I wanted to open a 4 yr fixed 4.25% at the Halifax to transfer in my Northern Rock ISA.

I tried to open Halifax 4 yr on the internet using the ISA transfer section of the site. Received a letter back saying they were unable to open a new ISA for me as I'd already opened one this tax year ie the 2 yr fixed. Despite me using the transfer section, they assumed I wanted to put new money in the 4 yr.

I phoned Halifax and told them what I wanted to do. After some umming and aahing, they told me I could do it. It took them a week to send me an utterly useless transfer form which had no space on it for me to tell them that I wanted to open the 4y fixed account, nor did they send me any account opening forms. So, I've got a transfer form, and no account at the Crappifax in which to transfer my money.

I'm loathe to phone them again as I spent 15 mins in a queue last time, and I expect I'll just be told to open an account online or go to my local branch (don't have one as it shut a few months ago). Vicious circle, anyone? :mad:

Suffice to say, I've sent my Northen Rock reinvestment form back to them today. They're far more helpful than Halifax.