Halifax ISA Direct Reward extra .2% question

fly-catchers

Hi,
I have got two Halifax ISA Direct Reward accounts. One for the year 2010 & a current one. The first was giving 2.8% and the current one 3%. But both also were advertised as giving an extra .2% if you also held a Halifax current account which I do.

When the first ISA matured recently the statement showed the interest as 2.8% not 3% as I would have expected. And on my online account the current ISA shows 3% rather than the 3.2% I should be getting. Does anyone else here have a similar account setup and does yours show the full interest correctly?

I spent over 45 minutes in the local branch where none of the staff including the manager had a clue as to whether I had received the correct interest all not!! Though the manager did try to insist it was correct as the current interest offered for this ISA is now 2.6%!! Took the person ages to understand the interest on this ISA keeps changing each year and anyway it seems as if they have now dropped this extra .2% incentive for a prize draw!!

I have had issues before with the Halifax where they make a song & dance in their adverts for a particular product but when you take it out and you have any problems- no-one has a clue!!

cheers

bill

jen245

Mine shows the same. I have the Direct Reward ISA 4 at 3%, and I have a Reward current account, so I am also earning the extra 0.2%, and it has always shown as 3% on my online banking.

Carpi10

I'm in the same boat as you but have never asked the question.

DragonQ

I was told that:

a) The interest rate would always show what you'd get without the bonus in the online banking system.
b) You get the bonus interest for the entire year even if you've only been a reward customer for part of it.

I guess their new 2.6% ISA doesn't have the reward bonus but if you've got an older ISA then that's irrelevant.

BLB53

Banks are OK for current accounts but for anything else, they are pretty useless!

rb10

When you registered for the extra 0.2% interest, you'll have been sent a copy of the T&Cs applying to the extra interest offer.

They do vary slightly depending on when you registered, so I'd suggest you dig out your letter to check it. However, mine says:

Additional_0.20%_AER/gross_pa_savings_interest_-_Special_Conditions wrote:

Your additional interest will be calculated after the 12 month period, and then paid together with your standard interest, on your next usual interest payment date.

As this additional interest is calculated after 12 months, you will see the standard variable interest rate that applies to your savings account on any correspondence we may send you in relation to your account and when viewing your account online.

MoneySaverLog

I had a letter telling me about the 0.2% extra bonus, but not for a ISA although I think it applies to that as well if you had one, as I hold the reward account and fund it with £1,000 a month.

As has been mentioned, you only get the bonus at the end of the year as long as you hold the reward account and pay in £1,000 a month or pay for their ultimate reward account.

2010

The Halifax online helpdesk number is 0845 602 0000 where you may get more help than the branches who either don`t know, don`t want to know and will not bother to find out.

Ring the number to find out if you`re actually registered for the .2%, do not assume you are.
If you`ve received a letter, you`re one of the few, and they only (maybe) send one letter no matter how many accounts qualify.

I have been assured, both in branch (you must be because you have a qualifying current account) and also by "online" via the phone BUT never received a letter.

When the first 12 months is up, I`ll be on the phone chasing them up.
I haven`t heard that it`s being stopped because of the monthly draw, so can`t comment.
Don`t forget you have to register for the monthly draw online via their main site.

tipsychick

Well I've received a letter from them today, stating that the "12 month Reward period is up" and giving the exact amount of interest they feel is owed. I registered for it immediately when it was launched last September and then again in February of this year.

Having done a monster calculation of my own, the figure is actually slightly lower than I'd expect but having spent an hour on the phone to them, they're unable to provide a detailed breakdown of how they've reached that amount and say I'll have to go into branch or write in to find out.

Also it's unclear when it will actually be paid because the letter's so poorly worded but I think not until next April when the annual statement is generated, which I think is what the more recent t&cs did specify (the original wording of mine differs from rb10's above).

Only my ISA sort code and account no. are given in the letter, no mention of the ISA by name at all, but I think if you have other savings accounts with them that the extra Rewards interest would apply to, then they would be listed in this letter too.

I've had enormous problems in the past with miscalculations of interest on this and other of our ISA accounts with the Halifax and I can feel another formal complaint coming on...

10_66

rb10 wrote: »

When you registered for the extra 0.2% interest, you'll have been sent a copy of the T&Cs applying to the extra interest offer.

They do vary slightly depending on when you registered, so I'd suggest you dig out your letter to check it. However, mine says:

Originally Posted by Additional 0.20% AER/gross pa savings interest - Special Conditions
Your additional interest will be calculated after the 12 month period, and then paid together with your standard interest, on your next usual interest payment date.

As this additional interest is calculated after 12 months, you will see the standard variable interest rate that applies to your savings account on any correspondence we may send you in relation to your account and when viewing your account online.

tipsychick wrote: »

...Also it's unclear when it will actually be paid because the letter's so poorly worded but I think not until next April when the annual statement is generated, which I think is what the more recent t&cs did specify (the original wording of mine differs from rb10's above)...

I opened the Direct ISA Reward issue 4 in March, transferring the previous year's ISA into it. I didn't add this year's subscription to it, as I put this elsewhere. The 12 months anniversary will be in March 2012, so as the interest rate will drop I'd want to move it out before April. If I transfer out (thereby closing it) shortly after the anniversary date I will have satisfied their terms for the annual bonus payment, so I presume I can transfer out (thereby closing it) before April, and get the full closing interest? I don't want to give them an excuse to not pay my full interest, so if I've interpreted this incorrectly, please let me know .

tipsychick

I may well be mistaken 10_66 but I thought the account still needed to be left open with a minimal balance of £1 to qualify for the extra 0.2%. Then when that's paid out next April, along with the annual 3% interest, you can transfer out both interest payments plus the £1 too and close the account.

You can, however, transfer out the bulk of your capital (save the £1!) whenever you like, so next March on the anniversary of account opening when the rate drops is fine. For the last couple of years the Halifax has offered a replacement for those coming off the bonus, so people haven't had to transfer away and have just updated from Rewards 3 to 4 or whatever.

If my experience in the past and today is anything to go by, I predict there will be lots of problems reconciling the two interest payments next April. Their call centres better start bracing themselves!