Halifax ISA promise

lisyloo

You can find this on their website (below the summary box)

Variable interest. This is not a stakeholder ISA. Tax free interest paid on 5 April and at the end of the reward period. Reward interest rate applies for 12 months from the date we receive your first deposit, provided you pay in at least £1 within 60 days of account opening and keep at least £1 in your account throughout the 12 month reward period. Unlimited withdrawals. Minimum withdrawal is £10. At the end of the 12 month reward period, or if your balance drops below £1 during the reward period, the ISA Saver Direct variable interest rate and account conditions will then apply

But I have just taken a printout jsut in case.

opinions4u

lisyloo wrote: »

You can find this on their website (below the summary box)

But I have just taken a printout jsut in case.

I think they could reasonably argue that by backdating the deposit to an earlier date, the year starts at the backdating point and when the year expires they can reasonably drop your rate to 0.5%.

I'm 99% certain that their systems are set up to deal with it that way as well.

rb10

lisyloo wrote: »

We have quite a large amount between two of us so I'll want to check exactly what they've done when I see the interest (next year) anyway.

No - I believe that the extra 'ISA Promise' interest will be credited to your account shortly after the transferred funds are received.

opinions4u wrote: »

Most likely the branch has to date stamp the form and that date stamp drives the backdating of interest.

As far as I understand, that's the way that it's supposed to work. You get interest from the date the form was handed in at the branch (which is tracked by the datestamp).

I wouldn't worry about what you have been told over the phone, as I believe it to be incorrect. I expect that when FD have sent your money to Halifax, you'll see the full amount of interest up to that date being paid into your Halifax ISA.

lisyloo wrote: »

oh dear oh dear.
Appauling service from Halifax.

[snip]

It sounds to me as though the problem lies with FD not replying to Halifax. Just make sure you keep chasing Halifax until FD have acted on the request.

opinions4u wrote: »

I did manage to confirm though that the start of the 12 month period is from when the deposit is received.
So any back dated interest is in addition to the 12 month period for the purposes of the reward rate.

Ask for that in writing. Knowing their backdating system as I do, I doubt what they've told you is accurate.

I think that what they said is accurate, i.e. the twelve months runs from the actual date that the money is credited, and not from when they start paying interest.

lisyloo

I think they could reasonably argue that by backdating the deposit to an earlier date, the year starts at the backdating point and when the year expires they can reasonably drop your rate to 0.5%.
I'm 99% certain that their systems are set up to deal with it that way as well.

That's certainly not how I read it (the bit I put in bold), but thanks for your comments. I will definitely check at the time.

lisyloo

It sounds to me as though the problem lies with FD not replying to Halifax.

That's what I thought initially, but what if FD never received the request?

We wish to inform you that we have not received any request from Halifax to transfer your ISA. Hence could you please contact Halifax and advice them to resend the transfer documents.

I have now asked my husband to also query FD.

lisyloo

My husbands request has not been received at FD either.

I have been trying to get someone at Halifax to chase this up but so far they have not got round to it (day 24 of request, day 35 of account).

I have now raised a complaint as I can't get anyone from Halifax to call FD. If it wasn't for the ISA promise I'd simply stick with FD but there's now a £200 gain in it.

lisyloo

UPDATE:

Our xfer forms went into Halifax branch on 5/10.
On 4/11 I found out that First direct had not received our xfer instructions (one for me one for DH).
I could not get anywhere with Halifax, they just kept saying it would be dealt with in time via their procedures and would not make any exception even though I told them the form had not be received.
I raised a complaint about mine as I just could not get anywhere.

On 6/11 we went on holiday. On that day my DH received a letter saying his form had been lost and they did not have a copy, so could he fill it out again. We filled it out about 1 hour before our holiday and posted it at the airport.

My ISA was xferred on 16/11 and my husbands shortly afterwards.
I received a letter stating nothing was wrong but have £15 for your phone calls.

Halifax have now told me the interest will be backdated to 12/10 when they appear o have the form internally.
I have said it should be 5/10 when it was handed in and what did they do with it for a week?
I am waiting for a call back about that.

EDIT: They have now called back and will back date to 5/10 (my husband has to be dealt with seperately).

I asked about when the 12 months expires

Reward interest rate applies for 12 months from the date we receive your first deposit

and he says that because the deposit has been backdated then the rate runs out on 5/10.
I am happy with that.
Even though it's technically not when the deposit was received, they are treated it as if it was.
The 6 weeks interest is about £240 (although there was a gap of about 1 week between it leaving FD and reaching Halifax) so it's more like £200 for 5 weeks.

rb10

lisyloo wrote: »

I asked about when the 12 months expires

and he says that because the deposit has been backdated then the rate runs out on 5/10.
I am happy with that.
Even though it's technically not when the deposit was received, they are treated it as if it was.

I'm not convinced that he is correct there.

I may be wrong though.

rb10

Further to my previous post, I have checked, and it is definitely correct that the one year term starts on the date the funds are received from the old bank. The extra 'ISA Promise' interest that is paid separately is on top of your one year term.