Halifax ISA Direct Reward extra .2% question

jen245

I've got one final deposit for this tax year to make next week when I get paid, then I'm transferring it out to a fixed rate ISA. I was also under the impression that a new Reward period started from when my account was re-designated to the Reward 4 (opened the Reward 3 at the end of December 2010, changed to Reward 4 end of Feb last year), but this isn't the case, so now only earning 3%. Time to move now!

tipsychick

Of the four letters I wrote back at the beginning of October, I've received just one reply so far. One is now an official complaint, having been given the usual runaround by their call centre.

I know it's only my experience and anecdotal but I really do find the Halifax the worst of the lot to deal with.

DragonQ

jen245 wrote: »

I've got one final deposit for this tax year to make next week when I get paid, then I'm transferring it out to a fixed rate ISA. I was also under the impression that a new Reward period started from when my account was re-designated to the Reward 4 (opened the Reward 3 at the end of December 2010, changed to Reward 4 end of Feb last year), but this isn't the case, so now only earning 3%. Time to move now!

Well that can't be right, I opened a Reward 3 in November 2010 and upgraded to a Reward 4 in April 2011 (although it didn't actually happen until June or July 2011). I didn't get 0.2% interest in November 2011, so I can only assume I'll get both the 3% and 0.2% in April.

jennifernil

None of us have actually "got" the 0.2% extra interest yet, only been told we have earned it, and are presumably no longer earning it. It is only added to the account balance when the regular interest is added, so no compounding effect.

It is all rather disappointing.

2010

The .2% bonus is now finished on all new accounts.
The existing ones will run to the anniversary and then the .2% will be paid for the last time.

It was all a bit of a gimmick really from the Halifax and very hard to get any exact information about.
In branch or over the phone I`ve been told different stories about when it should be paid.
Then there was the business of getting registered for the .2%.
Before a certain date you had to fill in a form, after a certain date it was automatic (or the other way round).
Some people received letters saying they were registered, others were told you won`t receive a letter.
All very confusing and complicated, which I`m sure the Halifax mean`t it to be.
What they are really hoping is that everyone forgets about it or makes the mistake of closing their account instead of leaving £1 in it.

In future I`ll be looking for "straight, clean rates" with no gimmicks attached.

I`ve got an ISA due at the end of April and a websaver reward due halfway through April.
It will be interesting (no pun) to see what happens then.

opinions4u

All very confusing and complicated, which I`m sure the Halifax meant it to be.

Not at all deliberate. It was an up front offer and does pay the extra 0.2%. It applied automatically to new accounts with a manual process to register existing ones.

The big problem they had was technology. The merger of systems with LTSB meant that they had little IT support. So it started off with somebody manually working out the extra interest and then eventually got moved on to an automated system. This change also led to some of the finer details being amended too - not to any customer detriment, but just adding to the confusion.

So what started out as a well intentioned idea, with well intentioned changes to enhance the administration, has ended up tying them in knots and leaving staff and customers a tad confused.

At least we might win £100k with the prize draw thing!

AirlieBird

jennifernil wrote: »

It is only added to the account balance when the regular interest is added

Not true. The T&C state quite clearly that for accounts opened between 22nd September 2010 and 5 April 2011 the Reward interest will be paid on the 5 April 2011 and at the end of the Reward period (which is 12 months after the account opening.) Accounts opened since the 5th April 2011 will receive their Reward payment at the end of the Reward period.

jen245

AirlieBird wrote: »

Not true. The T&C state quite clearly that for accounts opened between 22nd September 2010 and 5 April 2011 the Reward interest will be paid on the 5 April 2011 and at the end of the Reward period (which is 12 months after the account opening.) Accounts opened since the 5th April 2011 will receive their Reward payment at the end of the Reward period.

Well Ive got a letter from them saying -

"Now that your reward period is over, the additional interest along with your standard interest will be added to the following account on your next interest payment date." and also "Your standard interest plus the additional reward interest will be paid in one interest payment to your account"

So the letter Ive received seems to contradict their T&Cs

jennifernil

Yes, exactly the letter we both got too. Our accounts were originally opened in November 2010. The extra 0.2% was (correctly) calculated, and stated in the letter, but has not been added to our accounts.

abarthman

Just got the same letter as others and I'm a bit confused.

It says that I'm going to get £69.90 (gross) interest. My ISA balance is £37451.45. I have had various incarnations of the Halifax ISA since 2005, topping up each April with the maximum allowed. I put £5340 new 2011/12 money in my ISA on 6 April 2011, and transferred £5,270.53 old 2010/11 money from a Santander ISA on 28 March 2011, so it looks about right. I've no idea when the 12 month interest period for the 0.2% started and finished, though.

I re-designated my ISA to a Direct Reward 4 on 7 March 2011, so I don't understand why my "12 month reward period is over" Surely it isn't over until 7 March 2012?

Not sure if the interest will be added to the ISA on 7 March 2012 or applied with the usual interest on 6 April 2012? I assume its the latter?

I assume the interest on the ISA will drop to 0.5% on 7 March 2012 and I won't get the £69.90 interest until 6 April 2012, along with the usual interest. If this happens and I want to transfer my ISA elsewhere, will I have to leave £1 in the account to ensure that I get the interest on 6 April 2012 or does the letter confirm that I don't have to do this?

Do ISA transfer forms give you the option to leave a £1 balance in the account that the money is being transferred from?

So many questions ...

I'd appreciate any thoughts.

Here's a link to my post from July last year re the loss of the 0.2% last year!

http://forums.moneysavingexpert.com/showpost.php?p=45430974&postcount=2123