Halifax ISA Direct Reward extra .2% question

jennifernil

2010 wrote: »

Here is a new twist to the .2% bonus saga and I`d like opinions on how I stand.
I have a cash ISA Reward which matures on 30/4/2012, which then reverts to a Saver Direct which pays 0.5%.
Today I received a letter confirming all this but it then goes on to offer a transfer to their 2 year fixed cash ISA paying 3.7%.
The way it`s worded this can be done more or less straight away and I have to let them know by 1st March by returning the form.

Here is the extract from their letter:
"There`s no need to wait for your reward period to end - we`ll simply transfer the balance and any interest you`ve earned to your new account and you`ll start earning the new higher rate"

OK, after checking 2 year fixed ISA rates, it`s not a bad deal, but what happens regards the .2% reward bonus?

To get the Reward 0.2%, you need to keep £1 in the account for the full Reward period. Nothing stopping you transferring everything but that £1. You will then have to wait till maturity date for your interest and Reward interest. So you will have to find a home for that amount as I don't think you could add that to your fixed term product.

But, according to the T&Cs I have seen, if you transfer the full amount and close the ISA4 before 12 months, you will not get the extra 0.2%.

So unless this is some type of time limited offer and preserves your extra 0.2%, be very careful.

BTW......for anyone interested in transferring to the 3.7% 2 year fix.....if you transfer to a BOS one rather than a Halifax one, the penalty for early closure is 160 days as opposed to 180 days with Halifax.

2010

jennifernil wrote: »

So unless this is some type of time limited offer and preserves your extra 0.2%, be very careful.

After speaking to the Halifax twice yesterday the gist of it is, the account and sort code stays the same and if you do it over the phone it`s fixed IMMEDIATELY for two years.

Then one "adviser" said the interest and the .2% would also be added to the new account even though it hasn`t reached the full 12 months.

The second "adviser", who I must say, sounded as though she knew what she was saying, said the transfer to the "new account", keeping same sort and account number, would be done immediately but the interest plus the .2% would be calculated up to yesterday but not added until 5th April.

jen245

It is done immediately, with all of your accumulated interest added, including the 0.2%, I did it last week, but I was out of my Reward period. Your account number and sort code are the same, they basically just re-designate your account

2010

jen245 wrote: »

It is done immediately, with your accumulated interest added, I did it last week, but I was out of my Reward period. Your account number and sort code are the same, they basically just re-designate your account

Obviously the 2nd adviser didn`t know as much as I thought. :rotfl:

jennifernil

Sounds like some sort of "special offer" then, I would be wanting the bit about still getting the extra 0.2% in writing first. We have had so many different versions about this interest that I now no longer believe anything they say!

We have both made partial transfers to the 2 year fix, we need access to some of the money, so our ISA4s are still open meantime. Going to move it when our 3% ends 01/03, or possibly sooner. Our Reward periods ended in November.

2010

As mentioned earlier my ISA reward should have run to 30/4/12 but they are offering the chance to switch to the 2 year fixed immediately, keeping same sort and account number.
This will tie my in effectively for only 1 year and 9 months from the end of this month.

jennifernil

Erm.....I don't really follow that. You will be tied in for 2 years from the date you transfer. You could consider that as 1 year 9 months from end of April.

I would still be wanting the 0.2% position clarified in writing if it is important to you.

2010

jennifernil wrote: »

Erm.....I don't really follow that. You will be tied in for 2 years from the date you transfer. You could consider that as 1 year 9 months from end of April.

I would still be wanting the 0.2% position clarified in writing if it is important to you.

I was expecting the account to run to 30/4/12 then I would have had to do something with it because it would revert to the 0.5% account.
This isn`t my main ISA account, just one I took out last April.

The 0.2% reward bonus would amount to less than £8 to date and they did say over the phone it would still be paid.
I can easily check that if the .2% has been paid and take it from there.

I have found in the past with Halifax if you can quote times, dates and what was said they usually give you £20 to shut you up, so no big deal.

jennifernil

yep, we complained about all the confusion over the extra 0.2%, and out of the blue, they gave us £25 each!

You don't have a lot in the account then? So an extra 0.2% is not that significant. Ours have all our ISA money in them, so more to lose.

2010

jennifernil wrote: »

To get the Reward 0.2%, you need to keep £1 in the account for the full Reward period. Nothing stopping you transferring everything but that £1. You will then have to wait till maturity date for your interest and Reward interest. So you will have to find a home for that amount as I don't think you could add that to your fixed term product.

But, according to the T&Cs I have seen, if you transfer the full amount and close the ISA4 before 12 months, you will not get the extra 0.2%.

So unless this is some type of time limited offer and preserves your extra 0.2%, be very careful.

This information is spot on.(thanks again)
Last night I was told a third version by an "adviser" about transferring my current Reward cash ISA with 0.2% bonus to the 2 year fixed.
This version was exactly as posted above by Jennifernil.

Basically if you want to retain the 0.2% bonus you must leave £1 in and transfer the rest to the 2 year fixed.
Come the anniversary of the account the interest plus the 0.2% bonus is added to the £1.
You then have to either close it and move the money elsewhere because of the lousy 0.5% interest rate or have the hassle of transferring it to another ISA account.

Three advisers

---

three different versions of what will happen.
Halifax don`t make things easy!

The other thing is, it can`t be done immediately online, they have to send you paperwork to sign and return and then it`s done.
After 30 minutes wasted on the phone, I`m just going to let the existing reward ISA run it`s course and when all the interest is added, take it from there.