Halifax direct reward ISA

homerhotspur

Every article I read seems to suggest that the Direct Reward is 3% guaranteed for 12 months but I just cannot confirm this on the web site. It says that this is a ' variable rate' but also mentions the ' reward period'. Can anyone direct me to specific details . I also assume this is not linked to the BOE base rate like Santander's. thank you

10_66

The Direct Reward ISA is a variable rate, currently 3%, the 0.20% bonus (if CONDITIONS are met) is applicable for 12 months from when the account is funded.

homerhotspur

So the 'Reward' only relates to people who have the qualifying account otherwise this is no more than a 3% variable account? i.e no bank rate linking or inbuilt 12 month bonus at all. I am a bit surprised, therefore, that this account is quite so ' tipped' by all the money sites as there is nothing to stop the rate being reduced at any time.

opinions4u

Halifax ISA Direct Reward 4 pays a rate of 3% (variable) for 12 months. After which, it becomes an ISA Saver Direct account paying 0.5% (variable).

The 0.2% additional payment for having a qualifying bank account with Halifax is in addition to the above, topping the current rate up to 3.2%.

I am a bit surprised, therefore, that this account is quite so ' tipped' by all the money sites as there is nothing to stop the rate being reduced at any time.

While there are no rate guarantees, Halifax has a record of offering this type of ISA over the last couple of years and has not reduced the rate on any of the offerings during the "Reward" period. Their ISA Promise also allows you to move your funds to a different Halifax ISA if you wish. So if, for example, they launched Reward 5 at 3.5% next week all Reward 4 customers could switch to it. Many Santander customers seem to be frustrated at the inability to do this with some of their ISA products.

Additionally, Santander don't accept transfers in to their higher rate cash ISA accounts. Halifax do. Santander also have a shocking service reputation. While I'm sure Halifax aren't an example of perfect service, it seems clear that they usually manage to resolve complaints when they arise.

jedi_paddy

opinions4u wrote: »

Santander also have a shocking service reputation. While I'm sure Halifax aren't an example of perfect service, it seems clear that they usually manage to resolve complaints when they arise.

And open accounts properly in the first place!!!

JohnB47

I opened a Halifax Direct Reward 4 ISA a couple of weeks ago. All done quickly on the internet (I didn't have to wait for forms to be posted to me to sign) and two transfers-in have been completed quickly (although the Halifax guarantees that the interest is applied as soon as they receive your request to transfer in, rather than waiting for the money to arrive).

As already said, many better rate ISAs at present don't let you transfer in.

The only downside I can see is that, although I can view my account online, I have to go to a branch to either pay 'new' money in or withdraw funds from it. Not too big a problem but having an internet BACS transfer facility would have been the icing on the cake.

rb10

JohnB47 wrote: »

The only downside I can see is that, although I can view my account online, I have to go to a branch to either pay 'new' money in or withdraw funds from it. Not too big a problem but having an internet BACS transfer facility would have been the icing on the cake.

No, that's not right.

To pay money in, you can just transfer it from another account. If you have other accounts with Halifax, then the ISA will appear in the 'quick transfer' box at the top. Otherwise just pay in using the sort code and account number.

Withdrawals can be done online to other Halifax/BOS accounts (again, using the quick transfer box at the top). Withdrawals to any UK account can be done by phone. If you want to transfer money to a non-Halifax account online, just do it via another Halifax account (open a Web Saver Reward at 2.8/3% instantly if you don't have another account).

Jessycat

Can someone clarify this for me?

My dad has a Halifax ISA Direct. He didn't top up his ISA last year, just left his balance at £20k. He's received his annual statement, along with the booklet of interest rates. He's only received £100 interest. The booklet states that the Halifax ISA Direct Reward has been awarded interest of 2.6%, increasing to 2.8% and is currently 3% as stated on their website.

Is the Halifax ISA Direct Reward a different account to the Halifax ISA Direct? I can only see this account, a fixed rate ISA and a variable rate ISA on their website.

:mad:

Many thanks.

pressuredrop_2

Jessycat wrote: »

Can someone clarify this for me?

My dad has a Halifax ISA Direct. He didn't top up his ISA last year, just left his balance at £20k. He's received his annual statement, along with the booklet of interest rates. He's only received £100 interest. The booklet states that the Halifax ISA Direct Reward has been awarded interest of 2.6%, increasing to 2.8% and is currently 3% as stated on their website.

Is the Halifax ISA Direct Reward a different account to the Halifax ISA Direct? I can only see this account, a fixed rate ISA and a variable rate ISA on their website.

:mad:

Many thanks.

Halifax ISA Saver Direct pays 0.5%.

I assume that's the account your father holds.

rb10

Jessycat wrote: »

Is the Halifax ISA Direct Reward a different account to the Halifax ISA Direct? I can only see this account, a fixed rate ISA and a variable rate ISA on their website.

Yes, they are different accounts.

He can change the account to the ISA Direct Reward by putting his account details at https://www.halifax.co.uk/isaupgrade.

He should make a diary note for a year's time to review the account again, as the high interest rate only lasts for a year.

JohnB47

rb10 wrote: »

No, that's not right.

To pay money in, you can just transfer it from another account. If you have other accounts with Halifax, then the ISA will appear in the 'quick transfer' box at the top. Otherwise just pay in using the sort code and account number.

Withdrawals can be done online to other Halifax/BOS accounts (again, using the quick transfer box at the top). Withdrawals to any UK account can be done by phone. If you want to transfer money to a non-Halifax account online, just do it via another Halifax account (open a Web Saver Reward at 2.8/3% instantly if you don't have another account).

Thanks for clarifying but the Halifax site doesn't actually say anything about how to pay new money by BACS (if you don't have another Halifax account, that is). All it says is "Easy access: you can manage your account and make deposits in branch. View your savings online 24/7 and transfer money between your own Halifax accounts." It says elsewhere "Access by telephone, or online (transfer money between your own Halifax accounts, view balance and recent transactions). Deposits can be made in branches."

So I took that to mean new deposits and withdrawals must be done at a branch.

Are you saying that I can log into my Halifax ISA account and transfer money in from, say, my HSBC account by BACS?