Halifax 3% ISA - Low Payment

Baldur

cjdavies wrote: »

..............clueless about ISA's and I was transferring (borrowing) the reminder of my allowance £3497 left into the account on 23/03/11.

This part of your question makes no sense to me - if your date is correct (23/3/11) there is no balance of your 2010/11 ISA allowance left. It 'died' at midnight 5th/6th April 2011.

You mention transferring & 'borrowing' and 'into' the account - the way that you've worded the question may mean something to you but not to me.

Marvel1

Baldur wrote: »

This part of your question makes no sense to me - if your date is correct (23/3/11) there is no balance of your 2010/11 ISA allowance left. It 'died' at midnight 5th/6th April 2011.

You mention transferring & 'borrowing' and 'into' the account - the way that you've worded the question may mean something to you but not to me.

Sorry, I will try and re-word it better:

On the 23/03/11, for the 10/11 allowance year it stated I have £3497 left to depoist into the ISA account out of the £5200 (I think) limit.

From another account I have, I transferred £3497 from that account to go into the ISA.

I'm on the ISA Direct Reward 4, what do I do if the rates drop before April 5th 2012, do I change immediately?

Baldur

cjdavies wrote: »

On the 23/03/11, for the 10/11 allowance year it stated I have £3497 left to depoist into the ISA account out of the £5200 (I think) limit.

The 2010/11 limit was £5,100.

From another account I have, I transferred £3497 from that account to go into the ISA.

I don't know offhand when the ISA Direct Reward 4 rate was increased to 3% (3.2% for qualifying customers), fairly recently from memory - but it was previously 2.8% and 2.6%, again from memory.

Suggest that you confirm which rate you are currently receiving and, if it's less than you expected, upgrade to the new issue ASAP.

Marvel1

Baldur wrote: »

The 2010/11 limit was £5,100.

I don't know offhand when the ISA Direct Reward 4 rate was increased to 3% (3.2% for qualifying customers), fairly recently from memory - but it was previously 2.8% and 2.6%, again from memory.

Suggest that you confirm which rate you are currently receiving and, if it's less than you expected, upgrade to the new issue ASAP.

I transferred from the 0.5% rate to the 3.0% rate on 8th March 2011.

I'm reading it a bit more now, after the 12 month period, does the ISA Direct Reward 4 end on 8th March 2012?

Should I switch ISA's if the rate drops below the 3% before then?

Sorry I'm just a bit confused, I have had an ISA since 2005 (I think) and never paid much interest in the % rates mainly because it was to me a nice lump sum but rates were high back then.

Baldur

cjdavies wrote: »

I transferred from the 0.5% rate to the 3.0% rate on 8th March 2011.

I'm reading it a bit more now, after the 12 month period, does the ISA Direct Reward 4 end on 8th March 2012?

Maybe - depends whether Halifax introduce yet another issue number/rate before that date.

Should I switch ISA's if the rate drops below the 3% before then?

Your choice - it depends on your circumstances/requirements and what's on offer at the time.

blueberrypie

Baldur wrote: »

The 2010/11 limit was £5,100.

I don't know offhand when the ISA Direct Reward 4 rate was increased to 3% (3.2% for qualifying customers), fairly recently from memory - but it was previously 2.8% and 2.6%, again from memory.

Previous interest rates and conditions are on the Halifax website at http://www.halifax.co.uk/savings/interest-rates/personal-rates/previous/#ISADR

Marvel1

Sorry one last question, feel I'm hijacking the thread now.

Interest is daily, so at the moment it's 3%, so say the rate drops to 2.6% on June 30th 2011, will I have earned 3% up until that date and then 2.6% daily onwards from June 30th?

AirlieBird

Interest is calculated daily and paid annually. So with the Halifax Reward ISA 4 each day you get 1/365th of the interest rate * your ISA balance. Say the interest rate dropped after 30 days from 3% to 2%, at the end of the year you would get 30/365th of 3% * your ISA balance + 335th/365th of 2% * your ISA balance.

Marvel1

AirlieBird wrote: »

Interest is calculated daily and paid annually. So with the Halifax Reward ISA 4 each day you get 1/365th of the interest rate * your ISA balance. Say the interest rate dropped after 30 days from 3% to 2%, at the end of the year you would get 30/365th of 3% * your ISA balance + 335th/365th of 2% * your ISA balance.

Thank you.

jefftool

lyndasharp wrote: »

My husband got £18 interest on his £3600 ISA of the same type. He opened it just at the end of the previous tax year (i.e. early April 10) and put in the full amount. It now says it is receiving 0.5% interest. I can only assume they dropped the interest rate on the 6th April 2010, as that amount of interest would be right for the 0.5% rate. We were expecting to get a full year at the 3% rate so are really annoyed!!!! We'll be putting in a complaint to Halifax, though I expect they'll just tell us to get lost.

Could this also have happened to your ISA, cornrob?

Same problem with wrong interest rate applied to my Halifax ISA FY09/10. ISA Direct Reward account opened end March 2010 at 2.6% or thereabouts, but they have paid interest at their ISA Saver Direct rate at 0.5 %. Spoke with them in branch, they conceded there had been a mistake, and my interest payment will be adjusted in up to 14 working days. Was also mentioned that others had flagged up the same issue.