Have Halifax calculated my ISA interest correctly?

VT82

I opened a Reward ISA with a transfer in October 2010. I transferred two ISAs from Natwest, with total balances of £5,903.95, and Halifax added an interest adjustment of £1.15 for their ISA switch guarantee. The date of all this inflow is shown as 05/10/2010. I can’t remember what the rate was supposed to be, but I think it’s 3.00%

At some point (a couple of days after it was launched, but it doesn’t say exactly when on my statement), I switched to their newer Reward ISA which should be paying me 3.20%.

I then transferred a Santander ISA in there this year. The amount was £5,246.39, plus £5.98 for Santander dragging its heels. The date of this was 18/03/2011.

I calculate that even if I was on 3% for the entire time, by 05/04/2011 when my interest was credited, I should have earned about £96 in interest. But then of course, I think some of this should have been at 3.20%. In fact, I only had £90.13 credited.

Can anyone double check my maths for me? If I am wrong, is it because of the wrong rates being applied, or the wrong calculation method? If Halifax is wrong, is it more likely to be ‘Reward’ interest not being added, or some other reason?

Thanks!

fs110

I make it £96.09 based on 3% the entire time. It would appear you have lost approx 10 days interest somewhere.

Did the transfers go in as cheques and they havent started counting them straight away? (I have no knowledge of whether Halifax do count cheques from receipt or when available, just a guess)

opinions4u

0.20% of the interest payable is their "Reward" loyalty scheme.

This is paid separately and at a different time.

oldfella

my guess is they havent added interest for the Santander amount. You wont have earned 3.2% - you only get that for a full year.

VT82

opinions4u wrote: »

0.20% of the interest payable is their "Reward" loyalty scheme.

This is paid separately and at a different time.

This seems like the answer. I would still be accruing the bonus interest, even if I transferred away before the year was up though wouldn't I?

Gotta really be on the ball when accepting annual interest instead of monthly

opinions4u

VT82 wrote: »

This seems like the answer. I would still be accruing the bonus interest, even if I transferred away before the year was up though wouldn't I?

Only if the account remains open. It is, after all, some form of loyalty scheme.

Vortigern

opinions4u wrote: »

Only if the account remains open. It is, after all, some form of loyalty scheme.

Usual advice, when transferring out, is to leave £1 in the account until the reward interest is paid.

Joe_Bloggs

Dear opinions4u,

Re:-
0.20% of the interest payable is their "Reward" loyalty scheme.
This is paid separately and at a different time.

can you hint, speculate or even guestimate when this will kick in ?

I reckon I got 2.55% at end of tax year, with 14K increasing to 19K at various stages throughout the year. My calculations are my own but the bonus is either in the pipeline or was it forfeit/delayed?
J_B.

opinions4u

Joe_Bloggs wrote: »

Dear opinions4u,


can you hint, speculate or even guestimate when this will kick in ?

From their web site:

For new savings accounts, the additional 0.20% AER will apply for 12 months from the date of account opening. For existing qualifying savings accounts, the higher rate will apply for 12 months from the date you sign up for this offer. The additional interest will be calculated and paid together with your standard interest on your next interest payment date following the 12 month reward period. As this additional interest is calculated after 12 months, you will see the standard variable interest rate that applies to your savings account when viewing online.

That might undermine what I posted earlier in the thread though!